LP gas

Discussion in 'Homesteading Questions' started by stirfamily, May 20, 2005.

  1. stirfamily

    stirfamily Well-Known Member Supporter

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    We just got info from our LP gas company, Blue Flame, about prebuying for next winter. The price is going to be 1.699/gal. I have been thinking of looking around at other companies. Has anyone heard of Level Propane? And do you rent or own your LP tank? And if you own, how big is it, what did it cost you, where did you buy it from and what are the advantages of owning your own tank?
    Thanks a bunch!
    Karen in NE Indianan
     
  2. VALENT

    VALENT Well-Known Member

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    That seems like a good price. Here it is about $1.80 now. We own our tank (cost about 600$ for regular above ground tank, ours is underground and cost about $1100)It is 250 gal and bought it from our local lp supplier. The advantage of owning your tank is not paying rental fees. The advantage of owning an underground tank is it is hidden and I dont have to worry about a flood taking it away or messing it up.
     

  3. WolfWalksSoftly

    WolfWalksSoftly Level II -Inappropriate

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    Both my Mother and Aunt have level payment plans with their LP provider. I think they rent the tank (minimal amount). In southern Missouri I think I saw an offer of
    $ 1.39, but could be mistaken. From now till July is the best time to lock in a low rate and start with a level payment if your stove, hot water tank and furnace will be using LP.
    Scott
     
  4. jlxian

    jlxian Also known as Jean Supporter

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    We also own our propane tank -- 500 gallons. It came with our house when we bought it, but I understand that around here a propane tank is worth $1/gallon of capacity, so a 500 gallon tank would be $500.

    We paid $1.90-something per gallon the last time we filled about October. $1.69 sounds like a great price to me especially right now!

    I believe if you rent your tank and take the level payment plan they will come and fill your tank on a regular basis, their schedule. Otherwise you call and order propane when you want it --- which I prefer even though it means forking over a big chunk of money about 2x a year.
     
  5. Windy in Kansas

    Windy in Kansas In Remembrance

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    The futures market for propane contracts has been nearly flat for over a year. There has been very little movement at all in the price of contracts. I did notice one day last week that one contract period had settled at 71¢ and this week has varied from 78¢ to 79.5¢ and todays newspaper showed that futures had settled at 78.5¢ yesterday. Again, pretty flat save for the 71¢ of last week.

    Typically July has the lowest priced delivery contracts for the year. With the price of crude coming down I'd expect prices to drop a little more. However you may not be able to lock in a yearly price later after they drop a little more (IF they do.).

    Here the local price of delivered LPG stayed the same from last December through spring. It had gone up 7¢ per gallon from July to December, from $1.27 to $1.34 less 5¢ per gallon for cash payment within ten days.

    I purchased my 500 gallon tank at auction for $475 and it was half full. I have seen several other 500 gallon tanks sell and most fetch the pretty standard $1 per gallon regardless of how much fuel they have in them. The problem with buying from other than a dealer is getting the tank moved and set.

    If purchasing a used tank make sure it isn't damaged by rust, especially around the tank label. Moisture tends to collect under them if not kept painted, hence rust. I'd certainly be leary of a deeply rust pitted tank. Oh, the labels are tack welded on at each corner, hence a place for moisture to collect.

    If you do consider buying a used tank check with your supplier to ensure that they will service it. Some dealers won't fill a tank that has zero pressure in it without an expensive thorough inspection.

    The advantages of owning your own tank is for starters that you should be able to choose the supplier of your choice. I used to know some folk that would buy every other tankful from one of two suppliers. Their theory was if supplies became tight or should rationing occur, they could possibly buy from both suppliers.

    Another plus is of course not having to pay a tank rental fee.

    By owning your own tank you can paint it the colors of your choice. I expect any supplier would insist that a tank be painted reflective colors for the most part to keep tank pressures as low as possible.

    Renting could have benefits as well. No tank maintenance such as painting, valve replacement, etc. Your money could be used as savings, or to lower an amount you owe if that should be the case. Of course with a rental the dealer would install the tank saving you that chore.