Propane Prices

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Pop_Rivit

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Today we received our reminder from our co-op about contracting our propane for the coming year. I called today, and the contract/lock in price is 94 cents/gallon and the current summer fill non-contract price is 99 cents/gallon. We scheduled a non-contract fill for later this week (it will take about 300 gallons to top off the tank) and contracted for 500 gallons this coming winter. We normally use about 600 gallons per year, so we should be stocked up for about 24 months with what we currently have, what we'll get to top us off, and what we contracted for this winter.

The newsletter said that propane supplies are "well above the average range", and inventories are still climbing. The price may go a bit lower, but at these prices I'm happy to lock it in and be set for the next couple years. If you use propane for heating you should consider checking into the current price before they start trending back up in anticipation of the fall harvest. It's been a very long time since we've seen sub-$1/gallon prices.
 
I would love to see that with home heating oil. From what I read the storage tanks everywhere are filled to capacity and speculators are leasing super tankers as a plain tank, hoping to hold onto the oil until it goes up in price.
 
Originally Posted By: used_0il
Search; LPG pipeline reversal USA Midwest.


Was there a point to your response? Most of the articles related to that were a couple years old and didn't seem to have any impact on this summer's low prices and high supplies. I'll confess that I'm not an expert on the intricacies of the propane fuel market-I just know a much lower price than average.
 
Last time I bought (in Pa.) it was $1.41. You would never get it for around a buck/gal here. If you don't own our own tank, the price is at least $2.50+
 
We have natural gas furnace, but our gas grill uses propane gas. Last year I filled 2 standard tanks of about 5 gallons each tank for a little over $2/gal. Couple years before I paid about $3/gal.

What are the differences between propane and natural gas ? Can one type be used in the other appliance ?
 
Originally Posted By: HTSS_TR
We have natural gas furnace, but our gas grill uses propane gas. Last year I filled 2 standard tanks of about 5 gallons each tank for a little over $2/gal. Couple years before I paid about $3/gal.

What are the differences between propane and natural gas ? Can one type be used in the other appliance ?


Propane can be used with copper pipes, and some propane applications use copper pipes such as a Coleman stove.

You can use propane with steel or stainless steel pipes, but not natural gas with copper pipes.

Natural gas requires steel or stainless steel pipes, if you use natural gas with copper pipes it will cause the copper to corrode.
 
Also regulator valves such as those found on a water heater are different for propane and natural gas. If you are installing a universal gas regulator valve, and you want to use it with propane you have to purchase a kit to convert the valve to propane.
 
ya I got some here yesterday for $1.29 per gallon which is really low for this area. My typical supplier said I should stock up now and beat the winter rush. Good idea but they wanted $2.29 a gallon.
 
Quote:

Propane can be used with copper pipes, and some propane applications use copper pipes such as a Coleman stove.

You can use propane with steel or stainless steel pipes, but not natural gas with copper pipes.

Natural gas requires steel or stainless steel pipes, if you use natural gas with copper pipes it will cause the copper to corrode.


Not so here. I have an all gas house. Several years ago when I switched over from propane to NG, I contracted with a licensed installer to check and or readjust my furnace and appliances. I had at that time, copper lines. They replaced 2 lines with new copper and that was it. I still have the same copper lines. This area is one of the most anal about codes and enforcement I've ever seen. If there was any such requirement, I would have had to have it done here.
 
Locking in your money now is risky. The company can go out of business and recovery is difficult. Fuel companies that were well established in my state(30yrs+) went out with $1M and $500k of pre bought oil and propane. The majority loss to municipalities.

Both times low prices in summer and they offered that with a sharp increase in price in the winter. I got burned out of $500 regrettably as I used check not credit card to pay for it.

The reality is fuel companies in my state have been created by ambitious truck drivers not businessmen.
 
Originally Posted By: JimPghPA

You can use propane with steel or stainless steel pipes, but not natural gas with copper pipes.

Natural gas requires steel or stainless steel pipes, if you use natural gas with copper pipes it will cause the copper to corrode.


I dunno what's in your Natural Gas, but the rest of the planet has Methane and a bit of Ethane in theirs (ours). Nothing corrosive to copper at all. Most Australian houses with the gas on are piped in copper. Acetylene had to be piped in steel, but not because it corroded the copper, rather formed copper acetylides and blew your house up, but that was 100 years ago.
 
Originally Posted By: rjundi
Locking in your money now is risky. The company can go out of business and recovery is difficult.


While that may be true, not participating in a contract can also be risky. Two winters ago, propane hit $4 to $5 a gallon for cash prices. Remember that it is a commodity and can be affected by supply and demand.
My regular supplier sent out a contract for $1.00/gallon for 100% prepaid. However, if you think that the supplier could go under (anything can happen), they also allow you to participate in their $1.05/gallon contract if you only put 20% down. So if I did participate in the 100% prepaid or the 20% contract and I theoretically contracted 500 gallon, I'd only be out of $500 max. Now if propane went to $4/gallon and I had no contract, I'd be writing out a check for $2000.
My supplier has offices in several states and I'm not too worried about them going under.
I think I'll contract some propane this winter.
 
Originally Posted By: rjundi
Locking in your money now is risky. The company can go out of business and recovery is difficult.


It's pretty clear you have no idea how a co-op works. Ours is financially healthy-there's nothing risky about it.
 
I would agree with Pop...though I think it might still drop a bit more.

Sure can't hurt to get it now, that is for sure!
 
Originally Posted By: Brad_C
Originally Posted By: JimPghPA

You can use propane with steel or stainless steel pipes, but not natural gas with copper pipes.

Natural gas requires steel or stainless steel pipes, if you use natural gas with copper pipes it will cause the copper to corrode.


I dunno what's in your Natural Gas, but the rest of the planet has Methane and a bit of Ethane in theirs (ours). Nothing corrosive to copper at all. Most Australian houses with the gas on are piped in copper. Acetylene had to be piped in steel, but not because it corroded the copper, rather formed copper acetylides and blew your house up, but that was 100 years ago.



Most natural gas the world over has odorant in it, as well as a bit of moisture. That odorant is a sulfur compound of various types. But that would cause issues with black steel pipe (which is how it is piped around here).

I know the LNG at my inlaws home is piped in copper.
 
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