Propane is a gas that becomes liquid under moderate pressure. As a heating fuel, propane is stored in a pressurized tank and measured by the gallon. When released into supply lines, the propane vaporizes back into a gas. Propane is the most common type of liquid petroleum gas, which is also called liquefied petroleum gas, LPG, GPL, LP Gas or autogas.
Typical costs:
During the heating season (October to March), the federal Energy Information Administration publishes weekly average propane prices[1] in the United States. In October 2013, the average residential price was $2.37. From October 2012 to March 2013, the average weekly price varied from from $2.195-$2.319, or about $880-$1,050 to fill a 500-gallon tank; between 2005 and 2010, prices averaged $1.73-$2.66 a gallon, or $690-$1,070 to fill a 500-gallon tank. With three to five fill-ups per six-month season, total winter costs could be $2,000-$5,500.
Propane is a byproduct of oil and gas production, and in the past propane prices rose and fell in tandem with the cost of crude oil. However, more than half the propane produced in the United States now comes from liquids brought to the surface by drilling for natural gas in shale rock, so propane prices are currently following the more stable costs of natural gas.
Residential storage tanks are typically 120, 250, 500 or 1,000 gallons, either above-ground or underground. For safety, propane tanks should only be filled to about 80% of total capacity.
Propane is sold by private companies. Some homeowners own their propane tank, while others rent or lease it from the propane company. Homeowners who own their tank can shop around for the best price for each delivery, but will have to pay any increases in the market price; they're also responsible for maintaining the tank.
With a pre-buy or fixed-price arrangement, consumers sign a contract in late summer or early fall for as much propane as they estimate they'll need for the entire winter. A contract can be a good deal if prices rise after the contract is signed; this happens most years because demand is higher in the winter, but prices can be unpredictable.
Additional costs:
Some companies charge separate fees of $5-$100 or more per item for delivery, hazmat safety, administrative costs, setting up payment plans, invoicing, fuel surcharges or other services. For example, in September 2012 Amerigas[2] charged a $9.59 HazMat & Safety compliance fee and $99 for setting up a fixed-price, 12-month payment plan.
With a company-owned propane tank, often the company requires that a certain amount of propane be used each heating season, and may charge a fee (typically $50-$100) if usage drops below the minimum.
Discounts:
Many propane suppliers offer new-customer incentives varying from a specific amount of free propane (typically 50-100 gallons) to a discounted price (roughly 5 50 cents per gallon, although it varies significantly). Be aware of the difference between introductory pricing and the standard rate after the "new customer" period ends.
Some companies offer discounts of 5 cents to 15 cents per gallon if the account is paid promptly (such as within seven days of delivery) or for automatic-fill customers. Companies also offer a bonus (50-100 gallons free or a $50-$75 credit) for referring someone who becomes a leased tank customer.
Work with neighbors to negotiate a group rate for deliveries, or look for an established local fuel cooperative like The Sacandaga Group[3] in New York or Our Town Energy Alliance[4] in New Hampshire. For a moderate annual membership fee (typically $20-$30), these buying groups negotiate a discounted rate; this varies considerably but can be less than the market rate by roughly 10 cents to $1 or more a gallon.
The US Department of Health & Human Services provides information about the Low Income Home Energy Assistance Program (LIHEAP[5] ), helping helps low-income households meet urgent home energy needs. LIHEAP is funded by the federal government but handled by each state[6] , so eligibility rules and assistance varies.
Shopping for propane:
Most companies require that new customers file a credit application before propane is delivered, unless the delivery is paid for with cash, according to the Oklahoma LP Gas Research, Marketing and Safety Commission[7] .
Large, national propane chains include AmeriGas[8] , Ferrell Gas[9] and Suburban Propane[10] .
The National Propane Gas Association provides referrals to propane retailers[11] by zip code.
10 Quick and Inexpensive Home Makeover Projects To Do While At Home You may not be able to host the large family gathering for the holidays, but there are still many ways to pick up items curbside to spruce up your indoor space for your everyday enjoyment and to bring a more festive spirit. || Posted December 30 2020
10 Key Ways to Prepare for Extreme Snow Forecasters are predicting a true nor'easter will hit the eastern and central states with rain, thunderstorms, ice, snow and high winds over the Thanksgiving weekend. It's crucial to plan ahead, before bad weather hits. || Posted November 26 2013
No contract price is $3.87 x 32.8 gallons + $3.81 fee = delivered remote Cooper Landing Alaska. New contract renewal $1.91/gallon for delivery plus propane cost which I need to check on. Gwins Lodge & Roadhouse Alaska - Online Cabin rentals & restaurant
I have been bitten a couple of times and will not again. Shop around and get the total price including delivery. The best thing you can do is to take a picture of your tank gauge just prior to your delivery in case things do not add up you have proof as to the amount that was in your tank before the delivery. I do pre buy for the winter. I asked them why propane was $1.20 gal in Redmond and $1.65 here where we have hundreds of gas wells and they could not give me an answer. Basically they charge what ever they want.
I own my own tank, just paid $1.499 per gallon from Shaw Creek Propane, best price and customer service around. Located in Edison Ohio. Customer- 8 years.
I purchased a home that was heated by propane,I was not aware but AmeraGas owned the tank and purchased the remaining propane from the previous owner then sent me a bill for the propane in the tank at a much higher rate than what they bought it for.
Price: $2.399/gallon + $7.95 Compliance Fee = $568.60 New company took over about 2 months ago. We were paying $65/year tank rent, will have to see if that goes up now. All this is very expensive. New natural gas line is less than 1 mile away, wish we could connect to that. Maybe some day....
have talked to several propane dealers . looks like thair are no regulations on they operation.The fideral goverment needs to regulate them also. they just charge what they want to.no one understands the buy up front contract. it says no matter what you buy if you dont use it by march you loose it. I think they are all a bunch of crooks. we need to band togeather write the Attorney General for price gouging.Never same price.
To accommodate a new standby generator, added a second 500 gallon tank via Southern States. Filled it & topped off original 500 gallon tank - 441 gallons total. $1.699/gallon
starting off the heating season and need to shop for price...any idea of a website that might do some comparison pricing to assist with where to purchase?
Just topped off my 500 Gallon tank. It was at 50% so 200 Gallons. We heat with wood most of the time and we cook with gas and use it as a back up heat source.
My bill was for 63.5 gallons @ 5.599/gallon which was $355.54. I called to complain because the National Average was $2.33 last month. I live in SC and the average for GA last week was $2.36 and NC was $2.71. For some reason they don't post what it is for SC, but we border GA and NC. The average between them is $2.52. So why is it $5.60 for me? I was told it depended on how much propane I used. The more I use the cheaper it will be. They did end up discounting my cost to $3.69/gal. That's almost $2.00! Why couldn't they just charge that in the first place? I'm grateful for that, but it's still way more than NC and GA.
These folks at Amerigas are a bunch of fools. We were renting a house that used propane and Amerigas bought out the company that we were initially using so we set up an account with Amerigas. We only needed to refill our tank like once in a year (we were real frugal since they charge so much) and then we moved out of the rental house. A year later they send us a $250+ bill. I called to ask what it was and they said that since we haven't ordered any propane from them in a year the charge is for them having had to come out and pick up the propane tank. WTH! 1. We were renters, not home owners. 2. If they need to pick up a tank, they should pay to pick up the tank, not charge the consumer, it's a part of doing business. 3. They should be charging the owner of the property, not the last known renters. We're still trying to get this untangled. I've given the company the property owners name, address and phone, but they continue to send the bill to us when they said they'd fix it.
I had my 500 gallon propane tank refilled this past week and got sticker shock at 277.3 Gal's @ $4.339/Gal = $1,230.93 + fees & Tax =$1,338.46. This is just outrageous!!!!
We have a rental property that had an AmeriGas tank on it that's used for the outdoors (pool/spa and fire pit). We had NO idea how fast the propane would drain until we started renting it out and have been shocked at the cost it's racking up.
3.42/ gal.is this exessive.my parents are on a limited income.with prices like this they won't be able to cook or have hot water. I have been looking everywhere online to get the current price here in California. does anyone know?I guess its cheaper than Tennessee and florida I thought it was comparable to gas prices
Posted by: Disgusted and Appalled in N. Myrtle Beach, SC.
Posted: November 17th, 2016 07:11AM
Company: Amerigas
Above average cost. With regular gas being the lowest it's been in years... Why is propane going up? Why do the have the right to force minimum purchases or you pay higher costs? I am sure the truck makes many deliveries in the area and I am not a special trip.
I own the tank, paid 1.89 per gal, plus tax, delivered 139 gallons....... works out to 2.15 per gallon. Not to many choices in lower Alabama, very close to Mobile Alabama, and Pensacola Florida. Bloosman Propane was much higher, Not sure if Amer Gas services area. No delivery charge. My home's only use of product is fireplace, dryer, and stove. Purchase time is approximately every 2 years so I do price shop.
We just paid ~ $280 for 150 gallons. It has been around that cost each fill for several months. This is in 2016 (which does not seem to be available in the pull down menu) :)
CostHelper is based in Silicon Valley and provides consumers with unbiased price information about thousands of goods and services. Our writers are experienced journalists who adhere to our strict editorial ethics policy.
CostHelper Community
shoulder mri Paid: 8000.00 Seriously, 8K for an MRI before all the secret insurance kicks in. I was stuck with a 1200 bill and my insurance is pretty good. This is insane for a 20 minute procedure with no nurse assistance... [more]
what should have cost under 100 Paid: 399.67 had my back wheel stuck on someone's driveway and I was pulled out as easily as a tractor could have done... [more]
Why is dental insurance stuck in the 80's? Paid: 55000.00 In 1986, I started my first full time Big Girl job, which came with options for medical insurance that ranged from "Volkswagon to Cadillac, and everything in between" which was up to me to choose based on my needs, what I could af... [more]