Bulk Propane

[TractorJeff]

Last year I averaged just under a gallon a day heating my shop to 50F when I wasn't there. 58 to 62F when I was in there. Using two 100LB (23.4 gal) tanks was a bit troublesome as I had to keep a close watch on usage. Typical fill on them was $2.49 to $2.69 a gallon.
I got off the phone with a local Supplier who offered a 120 gallon tank with a Lease that if you used a minimum of 100 gallons a winter, then there is no fee.
Typical fuel cost is $1.29 a gallon.

 

[Bretny]

Do you need to get permits and pay for the tank install? Did you use 100gal last year?

Are you transportation the tanks to get filled you own now? What's the charge I'd you dont use 100gal a year? So many questions.

You know you can buy 100lb tanks that can be filled from a propane truck. There about $40 more at a big box store.

 

[TractorJeff]

My last building was Fuel Oil heated, which varied in price per month. Furnace took floor space. This building is farther from the House so I put in a hanging Heater.

Natural Gas is not an easy option due to Service location and this buildings location.

Tank install will be less than $200 - Regulators, Line to Building, additional Materials.
Used close to 200 gallons last year.
I would transport the 100 pound tanks to Tractor Supply - one every 20 days to have it ready to switch out around day 26.
Charge is $85 a year for Zero usage, then prorated down for usage. - Example she gave was an 80 gallon usage last year the charge was $35.
I was tempted to ask about Truck Fill for the 100 pound Tanks but figured the price would be higher than Bulk - plus I would have needed to revamp my system to have an "Auto" Change-Over-Valve to switch between the 2 Tanks.
100 pound Tanks are $135 average purchase price at the Big Box Store around here.
I've seen them on Marketplace for half the cost of New and they sell quick. I see no problem selling them. Deer Season is coming so I figure the Guys will be looking.

 

[Bretny]

I would call about getting the 100lb tanks filled with a multi valve. When I was looking I couldn't find a 100lb tank used for less than $100. I have 4 now.

https://www.homedepot.com/p/Worthin...ne-Cylinder-with-Multi-Valve-327701/202936849

 

[Jackfre]

I'm in the same boat on my shop. I'm using a single 100# tank and I have a couple 20's for when the bigger tank goes dry. I don't heat continuously. I have a 250 for the house which I own. Given that the house now has the generator I think I will move the 250 to the shop and get a 330 from the LP co on a $60/yr lease. That will get me through the year on a single fill, or close to it. I have a backhoe and can run the underground poly. Chasing and transporting propane is a pitn and I'm about done with it. I think the numbers will work out if for no other reason than reduction of hassle factor.

 

[SethB]

Get the biggest tank that is reasonable (250?), allows you to fill during warmer months when prices drop.

I would do the lease to start and see about eventually buying a tank if the numbers make sense.

A lot easier to have a company come fill a big tank, than deal with swapping out tanks and taking them to be filled elsewhere.

 

[TractorJeff]

Get the biggest tank that is reasonable (250?), allows you to fill during warmer months when prices drop.

I would do the lease to start and see about eventually buying a tank if the numbers make sense.

A lot easier to have a company come fill a big tank, than deal with swapping out tanks and taking them to be filled elsewhere.

I should have asked about a 250 but figured maybe I'll go with the 100 for now to see how it all works out this winter.
If it comes down to more than 2 fills, then I'll definitely consider the 250.
They have a Summer Pre-Buy program so if I get Summer price then the larger Tank my not matter.
I will look into buying after this Winter goes through to see where the Lease numbers end up.

 

[theoldwizard1]

I got off the phone with a local Supplier who offered a 120 gallon tank with a Lease that if you used a minimum of 100 gallons a winter, then there is no fee.
Typical fuel cost is $1.29 a gallon.

Get that price in writing if possible !

No delivery/fill charge ?

Used close to 200 gallons last year.

If those numbers are accurate, you might want to pre-pay for the first 100 gallons @ $1.29 !

 

[yeldogt]

Around me they typically do twin 100g tanks .... For years I had a local company and the lease fee was 25 and I got the regular price. I used a few hundred gallons

If it's a local company .. great. The big boys are buying up in many areas and they change the rules all the time.

Now everything is corporate around me and owning the tank is really the best and cheapest long term option. Moving small tanks around is crazy ... the payback is owning the larger tank ....

 

[kj_mustang]

If those numbers are accurate, you might want to pre-pay for the first 100 gallons @ $1.29 !

I had my 1,000 gallon tank filled at the first of August for that rate. Always buy bulk in the summer.

 

[jones988]

I work for a Co-Op who has a propane division. We don't fill the portable 100# off the delivery trucks as they require a different valve than the bigger, more permanent tanks. And I can't speak for other companies, but as far as filling the smaller portable tanks like your 20#, and 30# grill tanks and the 100# tanks. They are filled and charged by the pound using scales because it is more accurate, where as the bigger, permanent tanks are filled by the gallon off the delivery truck. I believe our price last year per gallon was around $1.10 delivered. The price for the smaller tanks was $0.95/pound and there is 4.25 pounds of propane per gallon so you're paying roughly $4/gallon for the small tanks.

 

[yeldogt]

I'm getting quoted at over $169 at my place in PA.... Propane prices are all over the map. It's also in a well off area ....

 

[acmikee]

you are better off owning your tank. in a lease you can only buy your propane from that company but if you own your tank you can shop around for the beat price and the prices do vary a lot... you also might consider getting a 250gal tank

 

[HoosierBuddy]

Regarding the "get the price in writing" point....I might not bother with that.

As a NG guy, I've dealt with more PO'ed farmers in the last 10 years than I can count and to a man it was because they "locked in" prices with a supplier, prices went up, and the supplier either claimed he could no longer buy propane, or they simply quit answering the phone and went out of business.

It's like if you went to the gas station today and said, How much for gasoline for the rest of the year? I don't know exactly how much I'm going to need or when I'm going to need it....I just need to know exactly what I'm going to pay for it. How can they give you an answer? Yet LPG suppliers do it all the time, pocket the difference if prices go down and MAYBE eat the difference if prices go up.

To the OP...if it was me I'd buy my own tank and shop the gas when I need it filled. That typically will get you the best price.

 

[rmanrman]

I’m in northern Nj and have a 1000 gal tank leased from propane company
My best price after 5 years of calling and arguing that their price per gallon is Always too high
My best price has been $2.69 per gallon delivered for high usage customers
I use about 400 gallons per year. More if whole house generator is used
So I find out my neighbor is also paying $2.69 per gallon with a 72 gallon tank used for hot water and stove. Two people in her house. Why an I paying the high usage price and she is paying the same for one fill up per year. Called and no answer and no return calls
The delivery guy said no other company will deliver to their leased tank. Against the law??
Should I tell them to come and get their tank outa the ground. What does a 1000 gallon tank cost plus installation? Or am I stuck overpaying. Btw there’s a $100 per year lease maintenance fee.

 

[yeldogt]

My 1k tank w/ initial fill and some regulators is in the 6k range

 

[Skiff Builder]

I’m in northern Nj and have a 1000 gal tank leased from propane company
My best price after 5 years of calling and arguing that their price per gallon is Always too high
My best price has been $2.69 per gallon delivered for high usage customers
I use about 400 gallons per year. More if whole house generator is used
So I find out my neighbor is also paying $2.69 per gallon with a 72 gallon tank used for hot water and stove. Two people in her house. Why an I paying the high usage price and she is paying the same for one fill up per year. Called and no answer and no return calls
The delivery guy said no other company will deliver to their leased tank. Against the law??
Should I tell them to come and get their tank outa the ground. What does a 1000 gallon tank cost plus installation? Or am I stuck overpaying. Btw there’s a $100 per year lease maintenance fee.

I feel your pain. Northern NJ ,use 800-1000 gal/year. Best we can do on a pre buy is 2.39 this year. Always a battle. When you pre buy the co (Suburban) will try to do many short fills on you.There are safety fees,etc they collect on every del.Take care of the del man at Xmas- he can save you $
I've seen loads off same truck go between our 2.39 and 4.65 to different homes.
One year, everyone compared varying prices , got together to complain. Propane co raised every one to highest rate.Would not do co op. Many tanks went to the curb that year.
Own your own if there long term. Thieves They Are!!

 

[Showkey]

Own your own works well unless there’s a shortage.......then the leased contract tanks get fill first and often. Owned tanks work if there’s competition in suppliers. Two suppliers does not make for competitive market.

 

[TractorJeff]

There are 4 suppliers around here but I chose Milton because "most" people that use them are happy with the pricing

 

[PSDEng]

Yikes, you folks in NJ are paying out the wazoo for propane. I bought a 500 gal underground tank and pre filled it for $0.91. Prices are about $1.20 here now. OP, it would be in your best interest to look into getting a 250 gal tank of your own, even if it’s just to eliminate the hassle of running tanks to the store every two weeks.

 

[jones988]

I work for a Co-Op who has a propane division. We don't fill the portable 100# off the delivery trucks as they require a different valve than the bigger, more permanent tanks. And I can't speak for other companies, but as far as filling the smaller portable tanks like your 20#, and 30# grill tanks and the 100# tanks. They are filled and charged by the pound using scales because it is more accurate, where as the bigger, permanent tanks are filled by the gallon off the delivery truck. I believe our price last year per gallon was around $1.10 delivered. The price for the smaller tanks was $0.95/pound and there is 4.25 pounds of propane per gallon so you're paying roughly $4/gallon for the small tanks.

After reading through some other replies, I would like to add a few more things. These are based off the way my company does things.

We don't tack on extra delivery fees and other etc. on our price. When you call and ask for a cash price, that is a delivered price that everyone pays. We do have a slightly cheaper price for Ag customers due to less taxes (just like the same for off road diesel). We do have a 150 gallon minimum delivery, which we are pretty lenient on depending on the circumstances. We also charge $50 for a gas check if someone runs their tank out and has us come fill it. That is a law we must follow and is a liability issue, a propane tank will actually vent off when it runs empty, so we do a gas check to make sure there aren't any leaks in the system before we will refill it. We also do this to try and prevent people from running their tanks empty all the time.

I will also add that if you lease a tank from one company, you can only have that company fill that tank because they own it. We charge $65 a year for tank rental, and that price covers anything from the tank to your building. (including regulators which have to be replaced every so often) We will also waive the tank rental fee if you use a certain amount of propane in a year.

Most of our customers do the lease agreement because new propane tanks are expensive. If I remember correctly, a 1000 gallon tank at our cost is around $1500, factor in a few hundred more for regulators, underground line, other fittings and our cost is easily $2000 for a new 1000 gallon tank to set at a residence. Most people don't also factor in the liability of owning their own tank. If you have one of our leased tanks, we cover everything from the tank to the building, any leaks or parts we cover. If you develop a leak at 2 am, we will show up to fix it and you won't get a bill.

We have actually had a lot of new customers switch to us because of the reasons other have listed. (price fluctuations, extra fees, won't return phone calls, etc.) I will say we normally aren't the cheapest propane price around, but we are gaining new customers by being upfront and honest and having good service.

 

[Bretny]

I guess theres always good and bad guys in a business. Also owning vs leasing your picking the lesser of two evils.

What is the average life expectancy of a 1klb tank? At $2000 your break even at $100 would be 20yrs not including any price break you get shopping around for propane.

I mostly know heating oil and when I need it I shop around. The price difference is huge. Even customers with service contracts and locking in a price are really getting bent over. I was paying 75c cheaper than my in laws one town over and they buy way more fuel than us.

 

[FTG-05]

you are better off owning your tank. in a lease you can only buy your propane from that company but if you own your tank you can shop around for the beat price and the prices do vary a lot... you also might consider getting a 250gal tank

How do you shop around for the best price?

I just looked up the"price" on my local propane deliverer and all it had was the generic mealy-mouthed non-answer:

"The price of propane depends on many factors, including demand, weather, propane usage, geography, and more."

To get an actual price, you have to "get a quote".

 

[dcg9381]

What is the average life expectancy of a 1klb tank? At $2000 your break even at $100 would be 20yrs not including any price break you get shopping around for propane..

Seems to be 20 years, but some of them go longer... Surprised there isn't a used market for these things other than BBQ.

 

[finn]

How do you shop around for the best price?

I just looked up the"price" on my local propane deliverer and all it had was the generic mealy-mouthed non-answer:

"The price of propane depends on many factors, including demand, weather, propane usage, geography, and more."

To get an actual price, you have to "get a quote".

Don’t they have a phone number?

 

[Bretny]

How do you shop around for the best price?

I just looked up the"price" on my local propane deliverer and all it had was the generic mealy-mouthed non-answer:

"The price of propane depends on many factors, including demand, weather, propane usage, geography, and more."

To get an actual price, you have to "get a quote".

You google propane supplier and go down the list of phone numbers with a pen and paper. After doing this a few times you know what companies not to bother calling.

 

[Dragfluid]

Good grief, talk about complicating corn flakes.

Get a 250 tank from someone who will bring it out and hook it up for free as long as you're buying from them. Pre buy a certain amount every fall for a certain amount and when it needs filling, call them.

Just last month, my outfit changed my 250 for a 500 (shop), transferred what was in the 250 to the 500 and it didn't cost me a dime. I also pre bought $1800 worth @ $1.29 a gallon for both the shop and the house. There are two tanks.

 

[Tduby]

After reading through some other replies, I would like to add a few more things. These are based off the way my company does things.

We don't tack on extra delivery fees and other etc. on our price. When you call and ask for a cash price, that is a delivered price that everyone pays. We do have a slightly cheaper price for Ag customers due to less taxes (just like the same for off road diesel). We do have a 150 gallon minimum delivery, which we are pretty lenient on depending on the circumstances. We also charge $50 for a gas check if someone runs their tank out and has us come fill it. That is a law we must follow and is a liability issue, a propane tank will actually vent off when it runs empty, so we do a gas check to make sure there aren't any leaks in the system before we will refill it. We also do this to try and prevent people from running their tanks empty all the time.

I will also add that if you lease a tank from one company, you can only have that company fill that tank because they own it. We charge $65 a year for tank rental, and that price covers anything from the tank to your building. (including regulators which have to be replaced every so often) We will also waive the tank rental fee if you use a certain amount of propane in a year.

Most of our customers do the lease agreement because new propane tanks are expensive. If I remember correctly, a 1000 gallon tank at our cost is around $1500, factor in a few hundred more for regulators, underground line, other fittings and our cost is easily $2000 for a new 1000 gallon tank to set at a residence. Most people don't also factor in the liability of owning their own tank. If you have one of our leased tanks, we cover everything from the tank to the building, any leaks or parts we cover. If you develop a leak at 2 am, we will show up to fix it and you won't get a bill.

We have actually had a lot of new customers switch to us because of the reasons other have listed. (price fluctuations, extra fees, won't return phone calls, etc.) I will say we normally aren't the cheapest propane price around, but we are gaining new customers by being upfront and honest and having good service.

There is a company that operates very similarly here first year I got the fixed prebuy price without having to prebuy with a new shop not knowing how much I would use it was nice. I filled my tank in July they were within $0.05 of the lowest but I would have to put in my own regulators and lines and it just isn’t worth it to me. Plus the company I’m using now has several big distribution centers so I feel fairly comfortable if a mild disruption happens they will still have propane not so much with the guys with a tank 3 times the size of a semitrailer.

 

[Adk Mike]

I’ve been in propane for years. My advice use the same supplier from summer to summer. Get a fixed price each summer. Own the tank or not. Do the math what works best. If your say 70 years old you won’t a return by buying it.
Last thing in your climate use a 500 gallon tank. At 80% they hold 400 gallons.
Minimize deliveries equals savings . Mike

 

[TractorJeff]

After this Winter passes, I may upsize to a 250 gallon Tank depending on usage and their Service of Filling when called. Come Spring, Tally up the numbers to figure out what is Best and most Practical!

 

[Bert_]

Used tanks are about a $1 a gallon. Seen some that were free when you figured out it had fuel left in it.

 

[fitter30]

If you buy a tank it has to have the name plate on it and take some soap bubbles with you and spray the valves and level gauge for leaks.

Sent from my KFDOWI using Tapatalk

 

[Leaflessshadetree]

Regarding the "get the price in writing" point....I might not bother with that.

As a NG guy, I've dealt with more PO'ed farmers in the last 10 years than I can count and to a man it was because they "locked in" prices with a supplier, prices went up, and the supplier either claimed he could no longer buy propane, or they simply quit answering the phone and went out of business.

It's like if you went to the gas station today and said, How much for gasoline for the rest of the year? I don't know exactly how much I'm going to need or when I'm going to need it....I just need to know exactly what I'm going to pay for it. How can they give you an answer? Yet LPG suppliers do it all the time, pocket the difference if prices go down and MAYBE eat the difference if prices go up.

To the OP...if it was me I'd buy my own tank and shop the gas when I need it filled. That typically will get you the best price.

My contract is always for a specified amount which is more than the summer fill price. I can either put down a deposit or pre-pay and get a lower price. So I prepay and am basically renting space in their tank and paying for services.
They keep records, predict my usage and top off my tank (usually they do several houses in the same area on the same day).

 

[dcg9381]

Texas, just got a quote. With a "service plan" - they are currently charging $2/gallon. Without a plan, they charge $2.49/gallon (same price I can buy it for at Tractor Supply)

 

[dcg9381]

Used tanks are about a $1 a gallon. Seen some that were free when you figured out it had fuel left in it.

I can find used tanks, but they all seem to be 1985 or older... Tanks that are less than 10 years old - haven't been too common around here.

 

[jpaw]

When replacing 100lb tanks with tanks over 125 gallons they have to be a set distance away from a structure based on size. 125 and below can be placed next to a structure but at least 10ft from a window or air intake.

 

[Chuckster in NJ]

For ALL you NJ guys with a leased tank here is a money saving tip!
Pull out that leased tank and buy your own tank and it will pay itself off in less than three years....... These big LP suppliers like Ameri*** and Sur*** are ****** you and I was a victim for years until I purchased my own #1000 gallon tank.
I know a place in Lancaster PA (they do deliver) who sells tanks and all associated hardware at a very good price and all you need is a back hoe to pull the 1800 pound leased tank out and set it at the curb for the "greedy" gas company to pick it up.
I made the trip with my trailer and picked up a tank for myself and one for my friend. The total time on installation start to finish was 5 hours...... And this was a "tricky" access location on a hill.
You will need the tank, primary regulator at the tank and a secondary regulator at the house, two anodes and any pipe fittings.
NO PERMITS are required because you are doing a "like for like" replacement in the same hole.
Call around to some local gas companies and see what they have to say about pricing and installation..... You will be amazed!

PM me for the name of the Lancaster PA tank supplier.

 

[TractorJeff]

Two Comments

Supplier called last week to say They will be here this morning (Monday).
I dug the Trench for the pipe from the Tank to my Shop on Saturday.

I was at a Friends house Yesterday, We were talking about Propane Suppliers, looking at his Tank, the Build Year was 1950!

 

[walrus]

For ALL you NJ guys with a leased tank here is a money saving tip!
Pull out that leased tank and buy your own tank and it will pay itself off in less than three years....... These big LP suppliers like Ameri*** and Sur*** are ****** you and I was a victim for years until I purchased my own #1000 gallon tank.
I know a place in Lancaster PA (they do deliver) who sells tanks and all associated hardware at a very good price and all you need is a back hoe to pull the 1800 pound leased tank out and set it at the curb for the "greedy" gas company to pick it up.
I made the trip with my trailer and picked up a tank for myself and one for my friend. The total time on installation start to finish was 5 hours...... And this was a "tricky" access location on a hill.
You will need the tank, primary regulator at the tank and a secondary regulator at the house, two anodes and any pipe fittings.
NO PERMITS are required because you are doing a "like for like" replacement in the same hole.
Call around to some local gas companies and see what they have to say about pricing and installation..... You will be amazed!

PM me for the name of the Lancaster PA tank supplier.

You have to be licensed in Maine to set a propane tank.

 

[Lassen Forge]

We got the "hard sell" trying to get us to rent tanks and service... I remembered, tho, if you lease the tanks from, say "ABC GasCo", then guess who is the ONLY company allowed to put gas in that tank? Yep - "ABC GasCo". If "Smokeygas" is 30¢ a gallon cheaper - sorry, charlie, we can't sell it to you.

We have this issue in Italy, where on our faded GPL (LPG in the US) tank you barely read the outline of "Enel", and the ONLY people who will fill it is Enel. We tried to get a different company out there (because they were cheaper), and when they showed up, they gave us a bill for the drive out and told us we'd have to call Enel because it was their tank.

Anyway, we bought our tanks ouright from a gas supplier locally, and while they usually give us a healthy discount for propane, we could get it anywhere we choose. The one thing we found, however, is each supplier will try to talk you into doing a mandatory "service contract"... No, I'm not marrying you, I'm buying a delivered commodity. They'll also ask who owns your tank so they can arrange to have them picked up so they can install theirs (yep, they want to own you), when you tell them you just want gas delivered to your persoanly owned tanks, the attitude changes...