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If a propane contract states that the cost is XX cents over market rate of propane- how can you check to see what the market rate is to know that you are being billed correctly?
I have just discovered a discrepancy in what we have been billed and the company is "willing" to go back three months to adjust the bill. This is a commercial account and it appears that it may have been incorrect for a couple of years.
Is there a website that shows market rates going a couple of years back?
Location: Visitation between Wal-Mart & Home Depot
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Quote:
Originally Posted by HIF
If a propane contract states that the cost is XX cents over market rate of propane- how can you check to see what the market rate is to know that you are being billed correctly?
I have just discovered a discrepancy in what we have been billed and the company is "willing" to go back three months to adjust the bill. This is a commercial account and it appears that it may have been incorrect for a couple of years.
Is there a website that shows market rates going a couple of years back?
This links to a .pdf from the Energy Information Administration and may be helpful. http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/current/pdf/tablec3.pdf (broken link)
Unfortunately, "market rate" could be a fairly loose definition. Propane prices are influenced by many factors. Here's another website that may or may not have something that helps you - http://futures.tradingcharts.com/hist_PR.html
We are full timers living the RV lifestyle. There is usually a company near ever RV park who will deliver. We dont like the one near us so we pack it in and drive over to fill up the LP.
The price is what it is on that day. Just like going to a gas station to buy gas. With home delivery contracts, all that refers to is they come by when you call them and they fill your home tanks. It's more of a loyalty thing. There is no guaranty of price. Today I paid $2.39/g for LP
In my case, the company charged $1.21 a gallon over market rate, yet our contract read 60 cents over market rate. And they will only make adjustments for the past three months. Something stinks about this, since the contract has been in place for three years.
Not sure what the point is in having a propane "contract". We have a 500 gallon tank that's big enough to see us through the winter, I fill it in August when the price is typically as good as it's going to get that year. I call around for price, usually our farm co-op has the best price but just like filling the car with gas, I do some price shopping. I am not certain how much above the "spot" price I am paying, I just check around and get the best price that day and go on.
Another advantage to a big tank is frequently I can get the first tier "bulk" price (typically 300 gallons).
This approach requires you to not spend all you make every month, which you should be doing anyway.
Propane suppliers are always offering me these stupid "level pay" plans, but just like the car salesman who wants to talk monthly payment, not bottom line price, I ain't interested...
Another advantage to a big tank is frequently I can get the first tier "bulk" price (typically 300 gallons).
A lot of fuel dealers will offer bulk rates, I did. You can make more money because you can deliver a lot more product in a shorter period of time. Residential fuel delivery is a PITA when you need to make a lot of stops. Especially with my job as it wasn't simply a matter of parking the truck and puling out a hose.
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