Propane, again

JayinNY

Well-known Member
As I've said in the past my dad, brother and I heat with wood, but have back up oil for brother and me, dad has propane. He got a delivery yesterday of 180 unites, or how ever they measure it, he said it went up .40 cents from last fall to $3.89. For our area in eastern NY, by comparison last week I saw heating oil was$3.69, off road diesel??? Same dam thing was $3.84, and on road yet again same thing different color, and oooooh less sulfer, was $4.24 a gallon.
 
talked to someone today here paid $6.23 ! NE Indiana . Glad I am served by natural gas but just a matter of time until they create a crisis to bring it up to others levels.
 
For those dependent on Propane for your sole heating fuel source, I understand your pain. But why don't you people plan ahead and purchase what you need ahead of time? Why not buy, lease or borrow an extra tank or two? Pay for your fuel in mid-summer when they like to give it away? Most places I know have a summer fill program with cheap prices, payment plans, financing, and discounts for early pay.
There must be something you can do to buffer yourself against the price spikes in-season.
I don't see Propane being any different than any other commodity. Many farmers I know have most their diesel prepaid for all of next year already. Many will have enough storage to hold it all too. Same with fertilizer. Most guys know exactly what they need months ago and have it all locked in while there's still snow on the ground. Even ranchers know enough to keep a half a season worth of extra hay on hand minimum in case of a drought the next year so they can buffer themselves from a hay shortage. I'm sorry if I come off a bit harsh but I have trouble feeling sorry for someone who doesn't plan ahead for something he knows he needs. If you don't have a 2nd source of back up heat, then maybe you should put a bit more thought into your position of being susceptible to the powers that be.
 
I checked with my supplier on Tuesday, they said price was $4.89 on Monday and yesterday, Tuesday it was $3.99. He said wait a week or as long as I could because he felt prices would continue falling rapidly. He stated no problem with his supply, had plenty. This was in SE MN.
 
I understand your point, but alot of people dont have the finances for just that. Not everyone on the forum are farmers as well. It is easier to plan more ahead and prepay with farming as farming is a business, not just a regular household. I did use the summer fill program and kept the furnace lower but it only goes so far. It was some cheaper but not much cheaper than filling in December. Ive heard of some that have prepaid and get the cheaper price but not guaranteed a fill. As far as being prepared, I do put some of blame so to speak on the suppliers and companies themselves. They knew as well it was going to be a wetter than normal fall, and knew of pipeline maintenance and some shutdowns. I dont think anyone expected this type of jump in the price. Gasoline and diesel did the same.
 
In the 80's, I suffered the same abuse. Then, I smartened up and set up two 1000 gallon tanks. Fill 'em when gas is CHEAP, and ride out the shortages/high prices.

Or, suffer and whine.
 
I learned about these pitfalls long ago, tank rentals, prices, ect. I bought two reconditioned tanks (500"s) one for the house and one for my sawmill) buy propane when its cheap no rentals for lack of use. Only thing keep the receipt, after about 10 years or more they tried charging tank rental again saying they had no record of selling tanks but we had the receipts as I keep everything filed away for my business just to be safe. Two years ago the gas company called and asked if we would like our tanks filled the wife said we were ok they said we wanted the tanks filled price was way down and we should fill we did and said thank you for the call.
 
I had a 500 gallon propane tank back in the 1970's. It was so cold, ice all over the tank, very little propane pressure, furnace was putting out very little heat when I needed heat the most. That's when I converted to natural gas.
 
I am agreeing with Straw Boss. I heat with propane and I know that each july or August I will need to buy propane. We budget all year to have that money ready.
I have peace of mind,I get guaranteed delivery at a guaranteed price. Our contract also stipulates that if I short buy I can extend at the same price as my contract.
I did the same in my old house when I heated with oil.
 
The reason they don't have the finances to buy ahead is they never plan ahead or spend the $$$ on gadgets and luxuries and not put necessities ahead of everything else.We buy about everything whe need when its on sale,yard sales,auctions
etc etc.Doing that on a yearly basis we save a whole lot of $$$.As cheap as interest is these days it'd pay to get a loan to get the ball rolling for 1 year.Waiting until the last minute to buy anything when you have to have it usually means paying top price.
 
The Lp supply company I deal with does allow prepay or price setting in the late summer.

Of the 2000 customers they have 1800 of them did just that.

The company then books it with the pipeline to hold the price. So there is very little sold during the winter season.

The pipeline tanks are refilling, the lines are down and the price dropped a buck a gallon off it"s high this week.

It may drop as quick as it went up.

Gary
 
To all who say why don't you prebuy !

Well I have heated for 15 ? years with propane and only prebought 1 time. In all those years it really didn't change that much in winter to justify it. Some years I even paid less then the prebuy but most years more, but not too much more.

Then there's this year ! All bets are off !

So far my supplier had LP and has not gouged the pricing.

If this is just a 1 year deal I'll keep doing like I always do and see what happens. It will still cost way more at this point to add a wood burner or pellet/corn stove for a heat source.
Now if it is an ongoing thing the cost recoup would be quick.
 
I pre-paid the last 7 years, unfortunately this year I did not. Last two years the price in winter was less than what I pre-paid so figured I would just pay as I go, back in June/July when the contract was up everything was saying there was an abundance of gas and prices were going down. I guessed wrong and it's biting me now. My saving grace is I have a pellet stove also, so right now it's a little cooler in the house but my pellet stove is keeping it around 64 degrees and only heard my furnace kick in once the other night when it was -20 air temps. Plus I'm in a situation where I can pay it, just sucks that it looks like they are taking advantage of people. Feel sorry for the people in Northern WI that a company is "helping out" by providing propane at $7.00/gal and trying to lock them into a 3 year contract
 
Blame it on George Bush thats what all the Demo's did for 8 years now in 6 years price's has doubled but no one blames external_link
 
I agree, there are alot of people who spend and overspend on luxuries and the latest technologies. I dont buy hardly anything regular price and I fix most everything I can on my own. Each situation on an individual basis is different. Taking care of a parent who is blind with dimentia 24 hours a day takes money, so to find extra money isnt always possible.
 
Yeah.
NIPSCO's prices have been inching up all fall. Last bill showed $0.44 plus "delivery" fee of almost 9cents.

Still by far the cheapest other than free wood (still not free if you need a saw, splitter and truck/tractor/trailer ect)
 

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