Any propane users out there?

[IGot2P]

Just got a call from my supplier here in SE Iowa and their contract price for next year (if prepaid) is $1.929.....current price off the truck is $2.099. For comparison purposes we contracted 800 gallon at $1.569 last year. I realize that propane is normally less expensive in this part of the country than in most other parts but was just curious about prices elsewhere.

The bummer (besides the price) is that each year they keep wanting all of their money earlier in the year if you prepay. This year you must be paid in full by May 1st even though we will probably not start using the propane for heating until mid October.

Prices and comments from around the country would be appreciated.

Don

[David L. Martel]

P,

Just had some delivered last week. It was $2.60/gal. I think it was $2.30/gal. last Oct.

Dave M.

[Jim Elbrecht]

Yeah- I guess it's cheaper. Here in upstate NY I paid $2.70 last July- and by Jan it was $3.30. [and stayed there through last month.]

They want to use your money for free. My gas company doesn't offer 'prepay' or 'budget plans' for the little I use. But my fuel oil dealer does. I've passed on the deal every year, but have noted the offer and prices for the last 5 years. This is the first year it would have saved me anything. I used $1300 worth of oil this year & would have saved $150. But I would have had to pay$1200 last July instead of pay-as-you-go.

In my extremely frugal moments I have considered buying a second 275 gallon oil tank and filling them both in the summer when I can get the best deal from whoever I choose.

Jim

[runsrealfast]

I have a "nice" propane delivery man. What he does each year is let our tanks run almost empty (we only use out propane tank for our fireplace) in the spring. Then in the summer he shows up and fills it at the cheaper summer rates (at least the last two years its been cheaper). I guess there still is some good customer service out there.

John

[terry]

Seems like the best thing would be to calculate how much interest it would cost you to borrow the cost of a fill-up, from say the bank, six months in advance of when you will need it? If, for example the interest rate is say 6% and it will cost $500 for the fuel, buying it six months in advance. 6% annum. on $500 =3D $30. So for half a year; it will cost you, in interest, about $15 to fill up 'now' rather than wait for start of next burning season? And if you could save that, or more, by the 'now' decision it's a no- brainer. Since many bank LOCs require a minimum monthly payment your monthly payout until heating season might be 2% =3D $10/mo, so that after six months you will have paid out $60 (principle plus interest) and will then owe at the time you would be buying fuel anyway, a remaining balance of about $455. Of course with the prices of all fuels going up and the value of the dollar somewhat in doubt maybe a supply of fuel on hand would be a good decision?

[dadiOH]

That's a good trick since the wholesale price of propane is in the $3.10 - $3.20 range. They must have had a *LOT* on hand.

Our tank was filled a month or so ago, $5.36/gallon (central Florida). I'm changing from Amerigas to Blue Flame...they are only $3.85/gallon.

[IGot2P]

Is that a very small tank or what? I realize that propane in Iowa is cheaper than most places, but $5.36! I am the OP and I was talking about

500 or 1,000 gallon tanks.

Don

[runsrealfast]

Instead of a loan most bank have some sort of revolving line of credit. Might not be a bad idea if the interest rate is good.

John

[David L. Martel]

dadiOh,

Are you complaining because I pay less than you at $2.60/gal or because the OP is paying $2.10/gal? $5.36/gal? I hope you don't heat a lot in Florida. Is that the price to fill up the grill tank?

Dave M.

[dadiOH]

I wasn't complqaining, just saying $2.60 is a deal - less than what wholesale has been for several months.

No, its a 120 gallon tank. Last delivery was 72.6 gallons. Used for hot water, cooktop and - occasionally - fireplace starter.

[willshak]

I paid $2.75 a gal. last December. I get automatic delivery--

Bill In Hamptonburgh, NY To email, remove the double zeroes after @

[<h>]

WOW! It&#39;s WAAAY more expensive to have them come and fill a tank. I take my two 20lb tanks to the local welding supply store and it&#39;s $38 for 40lbs. I&#39;m in upstate NY, too.

[willshak]

on 4/24/2008 10:19 AM h said the following:

Yep, you pay for the driver&#39;s salary and benefits, the gasoline used to deliver the propane, wear and tear on the truck, the overhead, and profit.

[<h>]

Agreed, but I&#39;m paying less than $1 a pound, and delivery is $3.30 a pound. $2.30 a pound seems like REALLY high overhead. I may have to re-think putting in a propane cook top and fireplaces, and just stay with electric and wood.

[Jim Elbrecht]

-snip-

Whoa--- you&#39;re buying by the pound- delivery is by the gallon. 4.24 pounds per gallon- [

] So you&#39;re paying more to get your tanks filled than we&#39;re paying for delivery.

If you don&#39;t need the portability you&#39;d probably be better off having a 100 gallon tank that gets filled at home. [especially if you are considering adding some gas appliances.

Jim

[Stormin Mormon]

As I understand, 20 pounders are filled to 16 pounds.

[Stormin Mormon]

Delivery is figured by the galon. Worth noting. I can&#39;t remember, but a galon of propane is about 4 1/2 pounds, but I&#39;m likely wrong about that.

[S. Barker]

still 2.09 here in the south KC area. prepay is in october.

s

[S. Barker]

how do you get 6% on short term savings? do tell.

s

Seems like the best thing would be to calculate how much interest it would cost you to borrow the cost of a fill-up, from say the bank, six months in advance of when you will need it? If, for example the interest rate is say 6% and it will cost $500 for the fuel, buying it six months in advance. 6% annum. on $500 = $30. So for half a year; it will cost you, in interest, about $15 to fill up &#39;now&#39; rather than wait for start of next burning season? And if you could save that, or more, by the &#39;now&#39; decision it&#39;s a no- brainer. Since many bank LOCs require a minimum monthly payment your monthly payout until heating season might be 2% = $10/mo, so that after six months you will have paid out $60 (principle plus interest) and will then owe at the time you would be buying fuel anyway, a remaining balance of about $455. Of course with the prices of all fuels going up and the value of the dollar somewhat in doubt maybe a supply of fuel on hand would be a good decision?

[S. Barker]

having the little jugs filled by the pound is always more expensive than buying by the gallon. whether it&#39;s delivered or not.

i pay $15.50 to fill 30# jugs. I only pay $2.09 by the gallon.

s