What heck is going on with Propane prices???

[Bubba1235]

Just had my propane tank re-filled and about had a heart attack. $2.24 a gallon!!! What I don't understand is why its so high when the powers that be are saying propane reserves are at an all time high and there is a glut on the market.

It may be time to install a wood burner!

 

[rbh]

Re: What heck is going on with Propane prices???

Time of the year, demands up.
We have always used wood since we bought our place, the woods cheap but we had to replace our big stove with a new one with a cat in it due to the insurance people $3700 for a blaze king. (model was the king, biggest box available)

 

[Brewman61]

Re: What heck is going on with Propane prices???

Energy prices don't always follow the laws of supply and demand to the tee. Speculation can drive up prices, and if one form of energy goes up the others can usually follow. Oil is trading up, despite a more than adequate supply. Commodities traders dictate energy prices as much as supply and demand do. Sux, but that's how it works.

 

[Huron Angler]

Re: What heck is going on with Propane prices???

http://www.reuters.com/article/2011/02/02/idINIndia-54609820110202

This sort of manipulation goes on all the time. In 2014 they will probably be investigating the price fixing that's going on now. Nothing new under the sun.

The trading that goes on with commoddities these days is not what they were created for. The original purpose was to allow farmers, and businesses to hedge themselves in case of a price drop before harvest.

The rampant speculation creates bubbles in eergy prices just like the housing debacle, and the tech bubble.

 

[bassman284]

Re: What heck is going on with Propane prices???

Interestingly enough, natural gas is about a dime per cf cheaper than it was last year.

 

[bruceb58]

Re: What heck is going on with Propane prices???

Just had my propane tank re-filled and about had a heart attack. $2.24 a gallon!!!

We pay over $3.00. Count your blessings. Of course where I live, I haven't turned my heater on in over a month so not as big of a problem.

 

[rbh]

Re: What heck is going on with Propane prices???

I've been kicking around the idea of putting in one of the outdoor wood fired boilers to heat the shop, house and provide hot water. Fire wood is cheap in this area (if i don't get my own) and the payback on the equipment is looking better all the time. Even if I used it during the day while I am up and used propane at night while sleeping it would still cut my bills drastically.

A good sized wood boiler when loaded up will last 4-5 days I have been told.
J martin has one I believe so he should know the in's and out's of working with them as well what ones to buy and avoide.

 

[cribber]

Re: What heck is going on with Propane prices???

We pay double that amount here in Florida. My last tank refill it was $5.04 a gallon and that was in October.

 

[bigdee]

Re: What heck is going on with Propane prices???

$2.24 a gallon is cheap compared to here. There are no reserves for propane...it is refined from crude oil and it's price follows the cost of regular gas minus the road taxes. We have the largest natural gas reserves in the world and that is what we should be using. Natural gas can be pressurized and stored in tanks....there should be no need for propane according to some experts.

 

[1fishbone]

Re: What heck is going on with Propane prices???

I've been kicking around the idea of putting in one of the outdoor wood fired boilers to heat the shop, house and provide hot water. Fire wood is cheap in this area (if i don't get my own) and the payback on the equipment is looking better all the time. Even if I used it during the day while I am up and used propane at night while sleeping it would still cut my bills drastically.

A lot are used where I live.
They can take a 4'+ log.

I've got to do something too....maybe off-set with home-made solar for the daytime.

 

[MTboatguy]

Re: What heck is going on with Propane prices???

We are at $3.12 a gallon here in NW Montana right now, propane is one of the more manipulated commodities on the market and always has been, I remember when I worked in the RV business, gas was at $0.89 a gallon and we were getting $1.50 a gallon for propane..

 

[JB]

Re: What heck is going on with Propane prices???

Propane around here was pretty close to the price of 87 octane gas for many years.

The last couple of years there has been terrible scalping going on. Last year the guy came and filled the tank I had leased from their company and billed me $4.75 a gallon.

I screamed bloody murder and called 4 other propane suppliers. They each quoted me about $2.25 but said they could not pump into a tank owned by another company. I immediately bought the tank I had been leasing for $60. a year. I then requested bids and got one that guaranteed lowest price in the area (from the same co. that had wanted $4.75).

He came back a couple weeks ago and again gave me an invoice for $4.75. I did another survey, called the company and invited them to make good their guarantee. They immediately dropped the invoice to $2.24. That is $2.51 a gallon more for people who don't own their tank!!

$2,24 is less than 87 octane regular right now, so I won't squawk about it, but I caution every propane user to own their tank and get competitive bids for every fillup or a guarantee to match lowest price.

 

[aspeck]

Re: What heck is going on with Propane prices???

I've been kicking around the idea of putting in one of the outdoor wood fired boilers to heat the shop, house and provide hot water. Fire wood is cheap in this area (if i don't get my own) and the payback on the equipment is looking better all the time. Even if I used it during the day while I am up and used propane at night while sleeping it would still cut my bills drastically.

A good outdoor furnace will last up to 12 hours if filled properly and the demand for heat is there. Longer when the demand for heat and hot water isn't so great. If you are planning on being away for an extended period of time or don't want to always have to fire the boiler, then you better get a dual fuel burner so it will burn oil, diesel, or gas, whatever your dual fuel is, when there is no wood or coal in the fire box.

You don't want to "just not fire her" because you have an outside boiler that can and will freeze if you don't keep heat in her. During the summer you can (if you don't have any close neighbors) burn paper and garbage in the fire box and that will provide your domestic hot water, but it will smoke even more and can stink the neighborhood up, if close to other houses even with an catalytic converter.

The outside wood furnaces are great, if used properly and maintained.


BTW, good propane advice, JB.

 

[WIMUSKY]

Re: What heck is going on with Propane prices???

Just had my propane tank re-filled and about had a heart attack. $2.24 a gallon!!! What I don't understand is why its so high when the powers that be are saying propane reserves are at an all time high and there is a glut on the market.

It may be time to install a wood burner!

I hear ya. Last fall we contracted for $1.80/gal, now it's $2.37/gal. We decided to roll the dice and not contract for the full season in hopes that the price would go down. Ooops! We have to contract so early that it was b/4 the "speculators" were talking $4/$5 per gal of gas this summer. We already spent $1400 in heating and there's lots of winter left.
Speculators are the big problem. They're already priming us for the $4/5 per gal. It will happen. Talk about killing the economy. Look what happened when gas was high a couple years ago. People stopped traveling/spending, the economy tanked. Not like it's all that great right now....

 

[QC]

Re: What heck is going on with Propane prices???

Interestingly enough, natural gas is about a dime per cf cheaper than it was last year.

Natural Gas has "decoupled" from other energy prices due to long term mega glut from shale play. The US is in fat city with Nat Gas for 120 years plus.

 

[OldePharte]

Re: What heck is going on with Propane prices???

So JB, what did the tank cost and how big is it? Just want to get a feel for prices. We're looking to add a propane fireplace and cook top during our remodeling.

We have a heat pump and so far our highest electric bill has been $250. But then it is my only utility bill.

There are plans to bring in natural gas in a couple of years, but not sure if it will make it to our area.

 

[64osby]

Re: What heck is going on with Propane prices???

Were locked in at $1.79/gal till May, Not Bad

I still fire up the wood burner every chance I get. Saved over 200 gal last year compaired to the year before.

1915 Kalamazoo Brilliant Wood Stove...

 

[Summer Fun]

Re: What heck is going on with Propane prices???

My Mother has a stove just like that one in her living room.

That thing throws out alot of heat.

 

[OldePharte]

Re: What heck is going on with Propane prices???

Around here you can figure about a buck a gallon for the tank used. (Average tank is 750-800 gallon) Doesn't include any hardware or pressure regulator. The only issue I have with owning the tank is that they have to be inspected/tested every so often (not sure how often) and none of the dealers want to do it and make it easy for you to own the tank.

Figures. I completely forgot about the pressure testing. I know that Missouri has a very agressive pressure vessel testing program.

 

[64osby]

Re: What heck is going on with Propane prices???

My Mother has a stove just like that one in her living room.

That thing throws out alot of heat.

Yes it does, my wife said the house was 77 at one point today, w/o propane. I got lucky the stove came with the house.