Propane is very much based on volume. Around here if you use 150 gallons a year, todays price may be $4 per gallon, 400 gallons per year, $3 per gallon, 900 gallons per year, $2, etc. Fuel oil is generally different for residential use. They normally go by gallons per delivery. Up this way you get your price per gallon at 150 gallon orders, or the ability to only order 100 gallons at 10-20 cents higher per gallon.
In CNY there is a HUGE move from fuel oil and kerosene over to high efficiency propane. The ole "well earl burns hotter" theory from the 70's is cancelled out by properly sizing your boiler or furnace. I warned folks to do the math when turning to pellets in order to save money on propane due to the yearly volume criteria that sets the pricing in most cases. (Owning your own 500 or 1000 gallon tank eliminates the volume issues for the most part) I would just show folks the simple math. Keep in mind that I sold propane, pellet and coal fuel and appliances at the time, so I really didn't have an agenda:
You heat your home, domestic hot water with 900 gallons of propane per year. Its currently at $2 per gallon, last winter during the "shortage" people with decent companys were paying a little over $3.00 So, I would call it $2.50 x900 for $2250 for LP. Out of that 900 gallons, 650 for heat, 250 for hot water.
Now, you install a pellet stove and NEVER use LP for heat. Now your usage is 250 gallons at say $3.75 per gallon (You may see a lower PPG on your invoice, but review carefully for surcharges, add them up and divide by gallons delivered to see actual PPG. Don't forget any tank rental fees, etc) Ok, so $3.75x250 is $940ish.
So you just saved about $1300 per year. Now, 650 gallons of LP at 95% efficiency can be replaced by about 4 1/2 tons of pellets, if we are just comparing net BTU per unit at 95 and 78% efficiencies. I will tell them they will pay "about" $225 per ton on average the next few years for decent pellets(barring any "incidents) if they buy smart. So, 4.5x$225 is $1000
So, you spend $2000-$5000 for a stove, gas to haul fuel, work involved, etc to heat with a space heater instead of central heat to save $300 per year.
You can use your own figures to see how the math works out locally.
It is at the point now that folks can swap an oil furnace for an LP furnace, add in some "clean energy" grants in NY for less than a high end pellet stove and really not be spending, net net net much more to heat their homes.
Currently propane tanks are hard to come by as folks are switching to LP at quite a fast rate, and this is after a very tough winter in regards to degree days and LP prices.
