propane prices in Scranton area why such a difference (leasing, how much)

[sausages]

just got in a new propane gas fireplace insert and I started calling around for propane prices, this will be my primary heat.

One company quoted $2.49

next one quoted $1.99 first time delivery $2.99 to $3.59 after that

next one quoted $1.49 initial and $1.85 for the first full year.

What do you think and do we need more than a 100 gallon tank - any thoughts appreciated.

[jtab4994]

Propane companies can't predict the future, so they can't guarantee prices beyond contracts they've already signed to buy the product from the producers. $1.85 for a full year sounds good. I just paid $2.2990 per gallon for a 35-gallon fillup.

Ask about tank rental depending on how much product you use. I only have a generator so I pay $200.00 a year rental from Amerigas. They said if I add a second propane-burning appliance and used a certain amount of product the rental would be free.

[jtab4994]

P.S. Ask how much the delivery charge and the environmental fees are. Maybe the cheap companies are making it up elsewhere.

[thecoalman]

Originally Posted by sausages

One company quoted $2.49

next one quoted $1.99 first time delivery $2.99 to $3.59 after that

next one quoted $1.49 initial and $1.85 for the first full year.

Since so many people need the tank from the company and so many won;t deliver into anything but their own tank I would guess they are using it as a loss leader. Once you have a company most people are reluctant to switch because it's a hassle, especially if there is expense involved.

[jtab4994]

Amerigas said they will deliver product if I own the tank (I didn't ask about delivering into other companies' tanks). Problem is, if it's your tank you have to get it inspected whenever the government tells you to, which is every 5 years I believe. And presumably you have to find someone and pay for the inspection. A 100 gallon tank is $675.00 according to my sources.

[Karen-P]

Keystone charges $685 for a 100 gallon tank or $950 for a 250 gallon tank installed + the cost of the propane to fill it.

Here's the downside to leasing a tank from a particular company. They can charge you anything they like and you can't change companies.

We ran into this with our house in Bear Creek....."leased" the tank, we were charged competitive rates for propane for years, then all of a sudden they charged us $3.09/gallon when they quoted us $1.79/gallon as a new customer a week earlier (we cold called them annually to see if they were being fair and were shopping around for a propane supplier for our new house).

We made a HUGE stink and they dropped the price to $2.09/gallon, and then we changed from auto-delivery to "will call" and padlocked the lid of the tank so they couldn't deliver without our permission. We're in the process of moving, and will heat the house only enough to keep the pipes from freezing, so I don't need a full tank (1000 gallons) going into winter.

If you own the tank, you CAN call around and get the best price, just like you would with oil.

[sausages]

can I eventually buy the tank from the supplier

[Karen-P]

Yes, but find out how much first.

[jimazee]

Originally Posted by sausages

can I eventually buy the tank from the supplier

Probably...you have to call dealers to inquire about "the deal"...it will vary. If you buy a tank, you will then be able to call and inquire on the price per gal. when you want fuel. I think having a large tank is an advantage since you can fill less frequently if you 'buy right'.

Your best bet is to call (a few of) them. They get many calls on these topics.