Am I Paying Too Much for Propane With My Current Provider?

The price of propane fluctuates and is highly seasonal. An increase in costs could be the result of market factors. But it could be because your propane company is just jacking up the price or including hidden fees for routine services.

Propane has increased in popularity as a fuel source for homes, especially in certain regions of the country like the northeast and midwest. Propane generates more energy than natural gas, and it is compact and easy to store. But if you’re suspicious that you might be paying too much for propane, there are a few clues to look for. While there is not much you can do about market price fluctuations, we will help you spot the signs that your provider is gouging you with hidden fees and padded pricing structures. Below is some information on how to find a reputable propane provider, as well as some ways to determine if your current company is not one of them.

First, What Is Propane Gas?

Propane is a hydrocarbon found mixed among natural gas and petroleum deposits. It must be separated from these compounds for use.

Propane can exist in liquid or gaseous form. Propane gas is what is used to fuel furnaces, water heaters, air conditioners, fireplaces, grills, and to heat swimming pools. Propane is one of the cleanest burning fossil fuels.

Propane gas is generally more expensive than natural gas, but natural gas burns much quicker. Therefore, propane is more efficient and a better value overall. In fact, propane has more than twice the energy content of natural gas. That’s why it is a popular choice for more compact and portable fuel canisters used for grills or camping stoves.

What Impacts Current Propane Prices?

Crude Oil Prices

In general, crude oil refineries produce the bulk of propane gas. So, propane competes with crude oil from a production standpoint. For this reason, the price of oil has more of an impact on propane prices than does natural gas.

Supply and Demand

Supply-and-demand is another factor. Since propane is used mostly for heating, longer and colder winters can drive prices up. In short, people need more fuel for a longer duration, while inventories begging to dwindle.

For instance, this year, with so many people working or doing school from home, energy consumption has already increased. This portends higher fuel prices, especially if the winter months drag on. But this is the case for all heating fuels, not just propane.

Proximity of Production

There are some other factors that impact propane prices, like the proximity of production from where the product is needed. But, if you live in the same place, these influences will remain somewhat constant and will not drive propane price spikes over time.

Propane Price Changes That You Can Avoid

Fluctuations in propane prices are inevitable, but they shouldn’t be dramatic. If it feels like your propane prices increase just before you need a refill, take a look at what you’re paying for.

One easy thing to do is compare the prices among providers in your area.

Sure, some companies may offer “introductory rates” to try to get you to make the switch. However, these introductory offers from certain fuel suppliers can be misleading—you’ll find that low prices are often inflated when it’s time for your next delivery. But if prices at competing providers across-the-board are much lower than your current rates, then you may be paying too much for propane.

Avoid Unnecessary Fees

Ask for a breakdown of fees you are paying for your propane service if they are not already provided on your bill. Better yet, ask about prospective charges before scheduling the next refill.

• Delivery Fees – Companies may charge you for delivery during inclement weather or during non-standard delivery times.
• Administrative Fees – We’ve seen companies charge outrageous administrative fees that add up over the course of a season.
• Maintenance Fees – Are you paying for regular maintenance on your tank and equipment? This is another popular way for propane businesses to tack on charges. Choose a company that includes tank maintenance in their service contract. You may think this has the potential to elevate monthly costs, but the opposite is true. It will help you avoid paying for a large repair bill in the middle of the winter to keep your fuel flowing. It also gives you peace-of-mind that any problems will be taken care of, regardless of cost.

Delivery Costs

When it comes to propane, you should be paying for two things: the fuel itself and the cost to deliver it. It costs propane companies for transportation and labor to deliver fuel to your home. But there are ways to keep these costs down.

Companies With Smart Monitoring Help You Save

A big one is the use of technology that allows you and your company to monitor propane levels in your tank. This will help avoid running out of fuel for your home. And it also means that your service company only has to refill your tank when they need to.

If your propane company does refills during random time increments, this is inefficient. Think about it this way: your propane usage will fluctuate on a daily basis, with the weather conditions and general usage. Or, if you are away for two weeks during the holidays, that’s two weeks of non-usage that you should push your refill out.

Monitor for leaks and Save on Maintenance

And these systems allow you to monitor your levels for any irregularities, like leaks. So, companies that use these technologies also save on routine maintenance and can respond more quickly when an issue arises.

The right size tank can cut back on deliveries

Also, getting the right size tank for your house is essential. If you have one that holds more than a few months of fuel for your needs, then you can strategically have the tank filled during the summer, propane prices are the lowest.

Avoid Paying Too Much for Propane

Now that you have an idea of the types of pricing you should look for in your propane fuel service, you can determine if you are paying too much for propane. And you can assess whether it is time to move onto a company that offers you the lowest rates.

Be sure to plan when switching propane companies. You don’t want to cut off service and leave too much of a gap before your new service begins, especially during the winter months.

Switch & Save up to 30% on Propane

Propane Depot is Long Island’s top rated family owned propane company offering propane delivery and tank installation complete with 24/7 service. Plus you’ll never run out of propane again with our smart propane tank monitors.

Stop overpaying for propane! Click here for a quote or call us at 631-400-SAVE