Propane Prebuy

[Zee09]

Thinking about a Propane prebuy.
Nervous about the near future.
I own my tank and can get propane for $1.31 a gallon on 1500+ gallons.
Figuring on getting 2000 gallons and that price and they will store it up to two years at no fee. After that it is 3 cents a gallon a year or month...need to look that up but not an issue for me.

I have a 1000 gallon tank and need a fill now and will use it all well before any storage fees. Also if it goes lower i can buy at that price as well.

Remember they were talking about $5 a gallon propane.
Anybody else looking at this?

 

[bullwinkle]

Wow-makes me glad I’m on NG, with locked in price for 18 months! Hopefully the frackers will be back on line by then (taking advantage of the crude run up).

 

[vwmaniaman]

I had a pre-buy last July. Sure glad I did since it has more than doubled here. My son in Washington state says it is $4.59 there.

 

[manicrodder]

Wow-makes me glad I’m on NG, with locked in price for 18 months! Hopefully the frackers will be back on line by then (taking advantage of the crude run up).

Thinking about a Propane prebuy.
Nervous about the near future.
I own my tank and can get propane for $1.31 a gallon on 1500+ gallons.
Figuring on getting 2000 gallons and that price and they will store it up to two years at no fee. After that it is 3 cents a gallon a year or month...need to look that up but not an issue for me.

I have a 1000 gallon tank and need a fill now and will use it all well before any storage fees. Also if it goes lower i can buy at that price as well.

Remember they were talking about $5 a gallon propane.
Anybody else looking at this?

On natural gas here but the problem could be electricity. I have a propane generator still in the box.

 

[levi]

Thinking about a Propane prebuy.
Nervous about the near future.
I own my tank and can get propane for $1.31 a gallon on 1500+ gallons.
Figuring on getting 2000 gallons and that price and they will store it up to two years at no fee. After that it is 3 cents a gallon a year or month...need to look that up but not an issue for me.

I have a 1000 gallon tank and need a fill now and will use it all well before any storage fees. Also if it goes lower i can buy at that price as well.

Remember they were talking about $5 a gallon propane.
Anybody else looking at this?

At that price I would lock in all they would allow without hesitation.

 

[dlundblad]

I would do it.

Do you have a local provider or are they nation wide? I may have to look into something like this.

 

[Zee09]

I would do it.

Do you have a local provider or are they nation wide? I may have to look into something like this.

I use a company called thrifty propane which is in several states
https://www.thriftypropane.com/

 

[Kruse]

Two years ago, I contracted a year of propane for $1.13/gallon. Last year, I contracted a year of propane for $1.44/gallon.
My supplier still owes me about 400 gallons from my contract and he'll probably be delivering it this week.
In this area, the yearly low for propane is during mid to late June.
Of course, things haven't been normal for the last year.
My guesstimated opinion is to prebuy, but don't just go by me. I'm just saying that I would.
Not to rain on your parade, but just remember that a company buyout or bankruptcy would not be beneficial for you.
Before you say it can't happen, it happened in this area several years ago.

 

[Owen Lucas]

I'd do it, as long as its a reliable company and you know where the owner lives . Seriously though, I can't see propane or prices for anything going lower due to record inflation.

 

[eljefino]

There have been oil dealers that have gone bust here, and it's always at the worst time.

"Force Majeure" is a French word for "F U" and it gets declared just when you wish it wouldn't.

Don't gamble more than you can afford to lose. Congrats on the 1000 gallon tank though, I'm super jealous!

 

[Chris142]

Cheapest here is about $4 a gallon.

 

[Zee09]

I have been dealing with the company for 12 years and I understand but the house will go through that quickly and I'm at 20% now so even 2000 gallons would be a years worth. Sort of like the stock market eh.

 

[Chris142]

My tank is 250 gallon. They fill it to about 80%. That will last 2-3 months depending on heater use.

 

[ollie]

We have an open account with Suburban Propane. I'm not sure what the cost is but the pre buy sounds pretty interesting.

 

[dlundblad]

I have been dealing with the company for 12 years and I understand but the house will go through that quickly and I'm at 20% now so even 2000 gallons would be a years worth. Sort of like the stock market eh.

Ouch. If you can swing it, maybe buy 2 or 3 seasons worth. Say you don’t use it, is there a way you could sell it to a friend at cost so it doesn’t go to waste or is there some disclaimer in the contract about that?

We have a 1000 gallon tank. Our house is around 2600 square feet and 1 tank would last use around 1 normal temperature season. Our first winter with the house was so cold we went through a 500 gal tank in a month and paid $1.89 a gallon. The tank was a rental from a company we no longer use.

Last year we only went through 200 gallons but that was because we burned a lot of wood. We still burn now, but only if it’s going to be below 20*F and I have time to run it more than a few hrs.

 

[Zee09]

Ouch. If you can swing it, maybe buy 2 or 3 seasons worth. Say you don’t use it, is there a way you could sell it to a friend at cost so it doesn’t go to waste or is there some disclaimer in the contract about that?

We have a 1000 gallon tank. Our house is around 2600 square feet and 1 tank would last use around 1 normal temperature season. Our first winter with the house was so cold we went through a 500 gal tank in a month and paid $1.89 a gallon. The tank was a rental from a company we no longer use.

Last year we only went through 200 gallons but that was because we burned a lot of wood. We still burn now, but only if it’s going to be below 20*F and I have time to run it more than a few hrs.

You can have it sent to different locations etc. Plus like the stock market you can buy low...the dip...lol
I don't want to go crazy but if it does go to $5 a gallon that would be painful for everyone.

In years past you had to buy 2 to 3x your tank size. On this deal only 1x now.

In reality for us 1000 gallon tank folks that should be 800 gallons but
that may be 1000.. I will talk to them today.

 

[Zee09]

Prebuy up 21 cents today
I got in- just like the stock market but I think this was a great move
I feel bad for others getting soaked with these energy costs.
I am getting ripped on all energy because I am using all types.
Just trying to limit my costs.

 

[Donald]

We have an open account with Suburban Propane. I'm not sure what the cost is but the pre buy sounds pretty interesting.

Suburban Propane is reliable but expensive.

 

[Vern_in_IL]

I "phone in" when I need Propane. Thus I purchase in historical low price times... which is not right now!

 

[Donald]

Of course the first consideration is to own your tank. Beyond any rental fees propane companies charge more per gallon if you rent a tank and can only buy propane from them

If you have a buried tank you rent see if you can buy the tank as a used tank. The propane company does not want to pull a propane tank out of the ground to end up with a used propane tank sitting in their yard. I asked about buying the buried 500 gallon tank at my house, they gave me a price, I offered even less and they grumbled and said OK.