Propane pricing

Keith_8

Besides not having to look at the tank in the back yard are there any other benefits to burying the tank?

Is the fact that the buried tank is not exposed to varying temperatures an advantage to the fuel?

Keith

Keith_8

Propane pricing

Without naming any specific companies.

I'm trying to get a handle on how the propane market works here in western Connecticut.

How much is the fuel?

Are there delivery charges that need to be added to the cost of the product or is it similiar to heating oil in that there are no hidden costs?

Does it make sense to buy the tank?

If you have the propane company supply the tank how long do you need to committ to them for your propane purchases?

If you sign a long term agreement with them how is the future price determined?

I understand the lower BTU content of propane per gallon vs. #2 heating oil and what is involved with installing condensing gas equipment.

What I am unclear about is the product cost.

Keith

Keith_8

feedback

Anything?

Keith

Bruce M_2

Government Web Site

> Anything?

>

> Keith



You can go to the Energy Information Administration Website to obtain pricing information and forecasts for many different fuels.

Bruce M_2

Government Web Site

You can go to the Energy Information Administration Website to obtain pricing information and forecasts for many different fuels.


http://www.eia.doe.gov/oil_gas/petroleum/info_glance/petroleum.html

Keith_8

Thanks Bruce

The most current pricing I could find on the web site was for 3/08.
@ 3.96 per gallon it looks like I'm better off sticking with oil.

Keith

Steve Ebels_3

Good Grief!!

Folks around here in Michigan are beside themselves with the $2.30/gallon we are paying here. They'd absolutely flip out at $3.90.

At $2.30 propane is finally less expensive per BTU than #2 oil which is around $4.00

WV EGBERT_2

Try

http://www.nyserda.org/Energy_Information/nyepd.asp

New York state area, but may be close in prices depending on your location.

Currently my area $3.14 fo LP and $4.69 for #2 fuel oil.






To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

Tony_23

Pricing

I was offered 2.349/gal on a 2 year locked in contract by AmeriGas. Prebuy at 2.599. Last year I paid 1.899 prebuy, 2006 was 1.799 and 2005 was 1.499.

#2 oil here is about 4.79.

I've got a few conversions to do. LP mod/cons kick the crap out of CI oil boilers, IMO.

Keith_8

Makes sense

At that price difference conversion from oil to propane is a no brainer.

My best guess is I'll be @ about $4.60 for #2 this year.

At $2.60 I'm about 30% better off converting to Propane with a Mod/Con.

In my case the conversion will pay for itself in 2 years.

Thanks for the feedback,

Keith

Tony_23

And

Add in the typical difference between single input control and modulating burner of about 30% and it's even better. My experience shows modulating w/o condensing about 30% less fuel and mod/cons 40% +. ODR is built-in to most mod/cons as well. Smart money in my book.

mtfallsmikey

Same fuel, but different appliance

Any of you using propane clothes dryers? I'm kicking the idea around, cheaper than electric?

Bob Forand

Negotiate

You can negotiate price with LP suppliers based on volume. Not the same with oil dealers...

Keith_8

volume discounts

Is that because propane has been considered a cooking fuel and not a fuel to supply heat and hot water?

Worth asking about, thanks.

Keith

Keith_8

End of July

Made a couple of calls yesterday. Both companies told me that they are waiting until the end of July to make a committment for a locked in rate for this year.

As of today it would be around $3.10 per gallon of LP. Some additional incentives would also be available.

The traditional wisdom indicates that rising energy prices are a given for now and in the future.

Any opinions?

Keith

Tom Hopkins

I have 2 23 Gallon Propane Tanks,and they came today to top them off $6.19 a gallon for 22 gallons.

I only use it to cook, so they only come once a year, is this a bit outragous or is it me????

I'm on Long Island

Techman

Propane

It wasn't that long ago that the kind folks at BP Oil/Propane tried to cheat the American Public out of big bucks thru the propane line.Who ownes the propane/business in the U.S.A.?

Bruce M_2

Electric Stove

When your tanks are empty you can vote with your feet and get an electric stove or oven. There are some very good ones out there. At least with LIPA the rates are regulated by the state.

Jim_139

A higher cost for minimal delivery is normal. With small deliveries like that, especially once a year, the company really isn't making anything.
When comparing costs of LP vs fuel oil don't forget that LP only has approx 90,000 btu per gallon vs 140,000 btu per gallon for #2. So, LP at $3.00 gallon = $4.00 gallon for #2.

Jack

Buying a tank...

A good part of the equation in any liquid fuel purchase is the cost of the storage for the fuel. If the LP compnay owns the tank, which you effectively rent from them, they have to consider the cost/size of that steel in your yard. They have to size it adequately to supply you but not so large they loose on the cost of the steel vs your consumption. That balance typically gets you deliveries on a fairly frequent basis, which means that you are taking smaller loads at potentially higher cost.

If I was heating with LP I would get a 500 or better a 1,000gal tank and bury it in the back yard. The more storage you own the more in control of the buy schedule you are. As well, you are less susceptible to short term supply disruptions and can negotiate better rates. BTW, a LP undergound tank does not have the same environmental problems associated with undergound oil tanks.