OT propane

[JimDRIl]

We usually contract for the years propane, this year @ 128.9. Someone told us there has been a large increase in the gas supply and are wondering if this year we should wing it and just buy at market price rather than investing 1400 bucks with FS. If the price stays the same or drops, we win. Worth the gamble?

 

[Anonymous-0]

Prices haven't been much to sing about in recent years...
Propane

 

[markinwis]

Just got our contract for the house for 124.9 (we own the tank). I have another house 60 miles north, and signed with the supplier there this past July for 109.9 .

No complaints with the current supplier in terms of service (which is worth something - lots happier since we got rid of Ferrel). He just waited to long to lock prices, thinking they would drop farther.

 

[JMS/.MN]

In August I contracted corn drying fuel for !.18, and was eligible for a current refill at .99. First load last year was 2.19.

 

[ArkanDan]

I did the contract thing last year and came out ok. Was thinking about it again this year, but with all the turmoil in the financial institutions I decided against it this year and probably for any following years. If the gas company had a pocket full of my money and went belly up, there would be a a large upside down smile on my mug. As it is, I"m good until spring now unless the winter would turn into a record setter cold wise.

 

[schmuck]

I don't know who you get your propane from, but MFA has told me more than once if I contracted a price and market price dropped, they would bill me at the lower rate. I'm not sure how they could do that, and it never happened so I don't know for sure. Last year I got fed up with it all and built an outside forced air wood stove and only used about 10% of the 500 gallon tank ALL YEAR! I don't think they are happy, but I sure am.

 

[T_Bone]

Hi Jim,

It appears that natural gas is "trying" too make a bottom here. I have no idea if that low will hold or gas will go lower as were now at a 7yr low and 97% full of storage space.

They do have a process that converts NG to LP.

The video listed in this thread is nothing more than a commercial advertisement for a LP business and contains no useful info.

T_Bone

 

[Throop]

Wow, in my neck of the woods, central NY, the suppliers wont let you lock into a contract. Last week I paid 1.79 for the cash price, 1.99 was the regular price. Hasen't been 1.28 here for several years, and will only go up as the winter progresses.

 

[Dusty MI]

We've contracted our propane for several years. One year we paid less for one fill than the contract called for.

Dusty

 

[Matt from CT]

>I'm not sure how they could do that,

Insurance.

Not sure about MFA, but fuel dealers in general buy an insurance contract that assures them they won't pay more the X for the fuel. They build that cost into the markup they put on all fuel they sell.

If the wholesale prices are lower, they've still built the cost of insurance into their markup, so they just add the markup to a lower wholesale cost -- it doesn't hurt them to pass the savings along.

If the prices are higher, the insurance kicks in so they don't go bankrupt buying fuel for more then they've contracted to sell it.