I know this is the pellet stove forum, but I am sure a few people on here can advise me. I do have a pellet stove and have 5 tons of pellets in my garage. I use LP to heat my water and to partially heat the house, when I am not at home. Last year from Aug. 1,10 thru March 31,11 I used 492 gallons of LP. My new contract price is $1.85 per gallon. This is the third year using LP, so I am new at contract pricing. Does $1.85 seem like a good price? Should I contract or just pay the market price when the tank is full? What are your opinons?
LP contract Price? They offered $1.85 per gallon. Should I contract or not?
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GrahamInVa
Minister of Fire
I paid @ $3/gal about 6 weeks ago. Which is normal for my area. I could only dream of paying $1.85
With crude going down I would think LP prices would follow a little.. Who really knows though!?!
I don't do contracts or prebuys.. just don't likem.. I fill up when I get low. Just like in my truck.
Check out this link for current market prices...
http://www.eia.gov/dnav/pet/pet_pri_wfr_dcus_SIA_w.htm
With crude going down I would think LP prices would follow a little.. Who really knows though!?!
I don't do contracts or prebuys.. just don't likem.. I fill up when I get low. Just like in my truck.
Check out this link for current market prices...
http://www.eia.gov/dnav/pet/pet_pri_wfr_dcus_SIA_w.htm
thedude110
Feeling the Heat
Same -- I'm paying over $3 a gallon for propane, which is why I'm ditching my propane insert for a pellet insert.
$1.85 seems like a steal.
$1.85 seems like a steal.
VanderLaan
Member
Here in central IL, I paid $1.95 a gallon last winter. I too think that the price of LP may fall, but I would be very surprised if it falls much from that. If I was offered $1.85, I would fill the tank.
My summer fill price was $1.79, that was last week. Last year I locked in at $1.48, and the year before was $1.21. I use Demmer Oil from Worthington Iowa. Excellent customer service.
That's a cheap price its $3/gal here too. I go through roughly 1 tank every 3 years now.
I have always tried to veer from contracts. Read the fine print. It may be a great deal, but if they keep "topping you off", it may be cheaper in the long run, to just buy when you need it.
- pay $20 and change to Rent the tank. This November will be 2 years since the last fill, with about 40% left. We only use LP for cooking needs and I just "Test" the furnace once in the Fall and once in the Spring. Just to make sure that it works, in case of emergency or unexpected out of town days.
All in all, use your best judgment. If you still use about 500 gal a year. See how much the Contract states you "Have" to buy per year and if they will be Topping off the tank.
Have you thought about an electric water heater? We swapped out to one. Also thought about getting an Electric Stove, to eliminate 100% of our LP usage. But I am a Pyro at Heart and don't like how food Cooks on an electric stove Every year we get better at reducing our usage. With the addition of the Woodstove in the Basement this Winter, we hope to reduce our Pellet consumption also. Would like to go from 4 tons, to hopefully 2.5-3 tons. That would leave me with a 3 year supply in the basement right now.
The Propane Man hates me!! But I have the same feelings for him. So we are even.
Good luck and hope our prices drop a little (doubt it though).
I have always tried to veer from contracts. Read the fine print. It may be a great deal, but if they keep "topping you off", it may be cheaper in the long run, to just buy when you need it.
- pay $20 and change to Rent the tank. This November will be 2 years since the last fill, with about 40% left. We only use LP for cooking needs and I just "Test" the furnace once in the Fall and once in the Spring. Just to make sure that it works, in case of emergency or unexpected out of town days.
All in all, use your best judgment. If you still use about 500 gal a year. See how much the Contract states you "Have" to buy per year and if they will be Topping off the tank.
Have you thought about an electric water heater? We swapped out to one. Also thought about getting an Electric Stove, to eliminate 100% of our LP usage. But I am a Pyro at Heart and don't like how food Cooks on an electric stove Every year we get better at reducing our usage. With the addition of the Woodstove in the Basement this Winter, we hope to reduce our Pellet consumption also. Would like to go from 4 tons, to hopefully 2.5-3 tons. That would leave me with a 3 year supply in the basement right now.
The Propane Man hates me!! But I have the same feelings for him. So we are even.
Good luck and hope our prices drop a little (doubt it though).
littlalex
Member
Vinelife
Minister of Fire
I remember alittle over 10 years ago propane is this area was .75 a gallon.. now its close to 2.00..
Yeah Hank I was thinking the same thing. I remember locking in .69 cents a gallon. I had just purchased my first place and thought filling the tank with less than 300.00 was a stretch. It shot up about 2 winters later to around 1.75 and I about passed out paying around 800.00 to fill. I really like the 15 seer heat pump with strips and demand control of which is allowed to work and at what temps along with the pellet stove as a comfort booster. I like propane heat... I just do not like the fluctuating costs and shopping for prices. I enjoy shopping for pellet prices for some reason.
tjnamtiw
Minister of Fire
http://www.buildinggreen.com/calc/fuel_cost.cfm
This is the best fuel cost comparison program I've found because it takes into account your duct work insulation and location. Sounds like you have a hell of a deal!
This is the best fuel cost comparison program I've found because it takes into account your duct work insulation and location. Sounds like you have a hell of a deal!
Eatonpcat
Minister of Fire
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