Question about propane vs gasoline prices...

[msubobcats]

Our gas prices here are at $2.75 per gallon. Our propane budget billing has had us a bit confused. The driver will fill us up on a route basis, We are on a schedule. When he leaves he sometimes leave an invoice with only #of gallons, no price per gallon. He told me last trip that he does know the price per gallon so look at the next bill and see what the company charges. I finally saw the price two days ago when the bill came, we finally figured out where they show the price per gallon..... They have charged us $3.34 per gallon...
Shouldn't propane be less than gasoline? I am going out tomorrow and severely question the price. Just looking for some answers regarding the $0.60 difference. I thought propane was a less expensive product.
Thanks.

[440justin]

Not sure where you live, but that piece sounds high. We hit over $4/gallon two winters ago in the Iowa/Illinois area, bit it is back to less than $2 a gallon now.

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=W_EPLLPA_PRS_SIA_DPG&f=W

Sent from my Nexus 7 using Tapatalk

[JRTJH]

Companies charge different prices based on competition, availability, supply and demand (more expensive in winter than summer, etc).

The price you pay for "delivered" propane may include a delivery charge, a "per gallon" surcharge for transportation/handling, and any number of other charges that are a part of your "propane contract" with that company. Very few of them are "exactly the same" as their competition, so shop around for the best deal, but be aware that will probably change as the seasons change and competition changes.

Expect to pay significantly more per gallon when buying 5 gallon or 7.5 gallon (20 and 30 pound tanks) compared to buying 100 gallons or 500 gallons for a residential tank.

If there is a local Tractor Supply, give them a call and ask what they charge for propane. They sell "by the gallon" without a delivery charge or a "per tank" charge. Locally, the price is $1.89 per gallon, but the price "one town over" is 2.29, so don't expect to see any "standardized" price for propane just as you won't see every station selling diesel or gas for the same price.

[dcg9381]

Propane should cost less than gas, but it's a game... Price locks, delivery charges.

Shoot, around here, we're still getting a "fuel surcharge" of garbage service and probably hasn't been at a lower price in 10 years.

It's all about market, baby...

[msubobcats]

We are in North Eastern california... There are two other companies here so it is not like there is no competition. And we have a larger residential tank, thinking it is 250 gallon or so...

[Desert185]

We are in North Eastern california... There are two other companies here so it is not like there is no competition. And we have a larger residential tank, thinking it is 250 gallon or so...

I feel your pain. I left that state in '92.

[msubobcats]

And we are hopefully leaving very soon...
If anyone has heard of the "State of Jefferson " movement that is what we are hoping/praying for.....

[notanlines]

This chart brought to you by the same great people as 440justin's chart will tell you how sad it would be to be buying propane in Florida (or most of the east coast)
https://www.eia.gov/dnav/pet/pet_pri_wfr_a_EPLLPA_PRS_dpgal_w.htm

[GaryWT]

Our gas prices are up to about $2.10 but were below $2 for most of the winter. As for propane, I only have 20# tanks so I take them to the store to be filled. Had been paying $16 or 17 per tank but just found that BJ's fills them for $11.50 so last week I took 4 tanks there instead. We always find that our home heating oil is a lot higher than gas prices as well.

[canesfan]

Ugh!!! I've been paying $4.00 a gallon for years. There aren't a lot of places local that sell bulk propane, most places now just have the 20lb "swap" tanks, which for $19.99 is cheaper in the long run than driving across town to have my tank filled, plus you get a new tank each time. But for 30lb tanks that's not an option. To get anything cheaper than $4 I have to drive at least half an hour each way.

[Laredo291OH]

Alot of people ask why I choose to live in the middle of nowhere Ohio, today I was reminded of a couple of answers.

1. Eldora Speedway is only 40 minutes from my house (canesfan and gearhead will understand)
2. gasoline all winter was about $1.20, it's up to about $2 right now, diesel is about the same.
3. Bulk propane delivered to my house (500 gallon tank), 99 cents per gallon summer fill, about $1.20 per gallon in the winter.
4. local hardware store will fill propane tanks for about $1.50 per gallon.

[JRTJH]

Alot of people ask why I choose to live in the middle of nowhere Ohio, today I was reminded of a couple of answers.

1. Eldora Speedway is only 40 minutes from my house (canesfan and gearhead will understand)
2. gasoline all winter was about $1.20, it's up to about $2 right now, diesel is about the same.
3. Bulk propane delivered to my house (500 gallon tank), 99 cents per gallon summer fill, about $1.20 per gallon in the winter.
4. local hardware store will fill propane tanks for about $1.50 per gallon.

Not to mention the last time you heard a siren at 2AM was how many years ago ??? LOL It's the same "up here", out of the way, quiet, but unfortunately, our local "energy suppliers" are far too proud of their product. Being a "tourist area" we've learned to buy "before or after" any holiday !!! And, if going "downstate", never fill the tank until we're at least "south of West Branch" LOL

[zuley]

20 pound tank refills in our area, Guelph Ontario, are generally 20 bucks flat rate whether you have an empty tank or one that is only half empty. I have a friend who used to run a propane refill station. Propane sales are very lucrative for this very reason. Costco moved into our area two years ago and charge by the pound to refill your tanks. Took my two 30 pounders in last spring prior to the start of the season. One was 8 dollars and the other 11 for a top up. Nice.

[msubobcats]

I dropped into our propane company today and complained. I am still waiting for the call back from the manager...
And I complained very politely.

[gearhead]

Wish I was that close to Eldora!!

Two weeks ago I was having my gas grill 5 gallon bottle filled at our local small town family owned fuel distributor. While I was in the office paying, the office lady turned and asked the owner: "what are WE paying for propane"? $1.57. I think I paid them about $2 a gallon. Not a rip-off, and I am happy for them making a few bucks.
Propane, Nat Gas, and NGL (Nat Gas Liquids) markets are all messed up. The crude oil price crash started it. Oil & chemical company Economists and planners had assumed oil would be higher...$50+ crude oil, and nat gas & NGL would be cheap and plentiful. Many, many projects and many, many, many dollars have been committed to petrochem (ethylene) projects for nat gas/ethane/NGL feedstock. Several export facilities have been built expecting to export nat gas and NGL's. My ex-employer was, and is, involved in those projects. I did some inspection for one last year.
All that said, those markets are a mess and I doubt anyone knows where they are headed. It's very complicated. Supply of propane is flat and demand will soon skyrocket.
If you need help sleeping, dive off into this:
https://rbnenergy.com/spinning-wheel-gulf-coast-propane-exports-headed-back-down

[allmi01]

John,

I guess I hit the jackpot on propane fill up when I stop in at Holton's in Fife Lake. 100lb tanks around $65 and 30lb tanks around $14. Been that way past couple of year in November and October when I go that way.

Just lucky I guess.

Locally around where I live in Illinois, $22 - $25 for 30lb tanks and $85 for 100lb tanks.

[msubobcats]

Updating on the propane price...
We received a call back and they took us from $3.35 down to $2.78 per gallon. We will be watching the price when we get the bill after the next fill ups...