Buying propane for newbies

The telephone is your friend. I'd call local dealers and see what they have to offer. Not much more to it than that, IMO, for a one-time buy.

You might also talk to some people locally and see when the cheapest time to purchase propane is during the year. I noticed here propane went way up this summer but it usually comes down in price at the end of August.

Here in rural Iowa most lp is sold thru local farmers co-ops. Cheapest time to buy it May to August. Price goes up during harvest season due to high demand. Be prepared. A new to you supplier will most likely want to do a leak test and if the regulators are not up to snuff they will want to replace them also. But that's here and your there. Your mileage may vary.

Joful said:

Thanks, Butcher. One of our local suppliers replaced all lines and regulators three years ago, so should be good there.

Is there any truth to the reports of different pricing for folks who use it for primary heating?

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Not that I know of. around here it is either taxable home heating use or non taxable farm use.

Don't let the tank go empty. It seems like an easy enough mistake, but it will get expensive. The propane company will have to send somebody out to do a leak test on your system before they refill. Last person I knew that did that paid over $100 for the test on top of the propane for the fill up.

The gauges on tanks can get stuck too, so try not to go under 20% just in case the gauge isn't reading right.

-SF

Seems to me that the propane price varies immensely across the country. Not a lot of folks heating with propane in my immediate neighborhood, but some folks at work report completely ridiculous prices for their neighbors, like 500 gallon buys at $5/gal, under contract!

I think you picked a good time to do it, and the phone/Google will be your friend.

My supplier offers 8 cents/gal off the cash price at the time of delivery for owning your own tank.
I agree August is prolly your best value time to fill.

My supplier (Suburban Propane) has various pre-buy programs. I just paid for 200 gallons of propane, in advance, for $2.19/gallon; this is about half the usual price, supposedly. I would check into that, or also to see if your company has some sort of group contract with your neighborhood.

Joful said:

200 gallons? If one is able to get a contract for such a small amount, maybe I should not worry about getting hit with "low usage" charges for my 500 gallon purchase? I have to admit, I never found time to call around last week. Was a crazy week at work...

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My suppliers min contract is 150 gals.
That's about how much I use per year.
Over the years when propane has dropped quite low I will lock in for 300 gallons/year . Fill the tank right after signing contract and then again just before expired. The next year I may or may not contract depending on price.
Just locked in for 240 gals a month ago at $1.92

Joful said:

$1.92?!? I thought most were running around $4/gal.?

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$1.50 pre season fill and $1.60 regular here.

200 gallons? If one is able to get a contract for such a small amount, maybe I should not worry about getting hit with "low usage" charges for my 500 gallon purchase?

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I guess "small amount" depends upon your mindset. Here in a southern climate, with a BlazeKing and plenty of quality firewood, and a dual-fuel heat-pump, I imagine I might use as little as 100 gallons for a winter's heating. I have a gas cooktop, but electric oven.

Biggest thing: I just replaced my gas water heater with an electric one. I did it because a house addition blocked the through-the-wall venting of my old gas one, and it was 25 years-old anyhow, so living on borrowed time without a doubt. I agonized over how to vent a new gas one. Then one day, I did the calculation and realized I was better off with an electric one, financially. A gallon of propane contains 27 kilowatt-hours of energy. Modern gas and electric water heaters have efficiencies of about 70% and 90+%, respectively. Even with the usual 11 cents per kwh price of electricity here, and contract price on propane, it's about break-even; with the 5 cents per kwh off-peak rate and a water-heater timer, it's not even close.

$1.92?!? I thought most were running around $4/gal.?

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Oh, 200 gallons was the minimum for me to get the contract price. If I don't buy it all, the prepaid funds roll over to the next year. The "normal" price is about $4/gal.

Joful said:

I really need to find some time during the day to make some calls this week. Do you suppose a single delivery of 400 gallons would get me the $2'ish price, and not the $4'ish price?

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You have answered the question before you asked it, grasshopper. Some magic words that might help when you call: "contract price", "pre-buy", "summer fill-up", "neighborhood group price".

I k now here Irving charges one price for propane for heat and another for fuel for generators.
I was working at a buddies house and the gas truck hit both our places before lunch, if I recall correctly, it was like a buck a gallon difference.

I had my 500 gallon tank replaced with a 120 gallon tank. As long as I get topped off once per year, they waive my tank rental fee.

I'm considering calling and asking if I can just buy the tank where it sits. If I did, it would be easier to shop around for propane.

I generally only use 50-60 gallons per year. Propane is for heat only.

-SF

They usually only fill to about 80%. So you are probably looking at about 300 gallons. Around here they require a min of 200 gallon purchase.
Prices when I called around were $1.59 to $2.09 last month.

Joful said:

Is there any truth to the reports of different pricing for folks who use it for primary heating?

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We were told there was a difference in contract (they will come and fill on their schedule) pricing and what we would pay if we just called when we needed a fill.

Generally larger quantities per fill will get you a lower price.