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Discuss Why the #^&* is propane prices still so darn high???? at the Off Topic forum - Other Topics.

My house is heated on propane, and I ordered some in June when I first ...
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    Angry Why the #^&* is propane prices still so darn high????

    My house is heated on propane, and I ordered some in June when I first moved here because the tank was completely empty. At that time, I knew it would be high with oil being $147 a barrel and gas being over $4.00 a gallon. I was right. It was $2.09 a gallon then.

    I ordered more yesterday and was sure it would finally be cheaper. NOPE! It's STILL $2.09 a gallon here!!! They have a minimum delivery of 200 gallons. Back in June, they said it was because they had to offset the cost of delivering it with deisel fuel being so high. Now I know deisel is still high, but it's not near as high as it was in June.

    I think these propane companies are a big RIP OFF, and I can't wait to convert this place over to all electric!!!

    What does everyone else pay for propane?
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    Senior Member bubba8167's Avatar
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    Thing is, many of those companies weren't prepared for the price-drop.

    So, many of them are still trying to make up for the money they lost.
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    Quote Originally Posted by bubba8167 View Post
    Thing is, many of those companies weren't prepared for the price-drop.

    So, many of them are still trying to make up for the money they lost.
    How are they losing? They get it cheaper everytime they purchase it with prices dropping. Unless, you mean they purchased what they have now back when it was still high, and have to sell it at a high price to make any money off it? If that's the case, I can't wait till they buy some at the cheaper price so I don't have to pay so much for it.

    I have yet to understand why propane costs so much more to heat with than natural gas does? I have a feeling my heating bills this year are gonna average at least double what I was paying for natural gas at my other house, and it hasn't really even gotton cold yet here. IDK....hopefully not. This place seems to be better insulated than my other house was, and more airtight. Plus, I'm keeping the thermostate down when nobody is here which is most of the time. LOL
    I am 100% ANTI slaughter of our horses!!! And, PROUD of it. I fight to preserve life, not destroy it needlessly.
    Not every living being on this earth exists to pay homage to or serve as indentured servants to humans!

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    Senior Member bubba8167's Avatar
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    Quote Originally Posted by Stormyheart6160 View Post
    How are they losing? They get it cheaper everytime they purchase it with prices dropping. Unless, you mean they purchased what they have now back when it was still high, and have to sell it at a high price to make any money off it? If that's the case, I can't wait till they buy some at the cheaper price so I don't have to pay so much for it.

    I have yet to understand why propane costs so much more to heat with than natural gas does? I have a feeling my heating bills this year are gonna average at least double what I was paying for natural gas at my other house, and it hasn't really even gotton cold yet here. IDK....hopefully not. This place seems to be better insulated than my other house was, and more airtight. Plus, I'm keeping the thermostate down when nobody is here which is most of the time. LOL
    They buy in bulk.

    So, compared if they had bought what they needed, when they needed it, they've spent a lot more than they would have; and are trying to compensate.
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    Definition: A British Thermal Unit (BTU) is the amount of heat energy needed to raise the temperature of one pound of water by one degree F. This is the standard measurement used to state the amount of energy that a fuel has as well as the amount of output of any heat generating device.

    You might be able to imagine it this way. Take one gallon (8 pounds) of water and put it on your stove. If the water it 60 degrees F. and you want to bring it to a boil (212 degrees F.) then you will need about 1,200 BTUs to do this. All combustible materials have a BTU rating. For instance, propane has about 15,000 BTUs per pound. Charcoal has about 9,000 BTUs per pound and wood (dry) has about 7,000 BTUs per pound.

    fuel oil
    GradeHeating Value
    (Btu/gal) Oil No. 2---137,000 - 141,800Residential

    electricity
    1 watt is approximately 3.413 BTU/h
    1000 BTU/h is approximately 293 W

    with electricity, for every dollar you spend you should theroreticial
    get one dollar in heat. Fuel oil and Lp or nature gas you will loose
    heat up the chimney to a certain %, even the new furances
    97%effiecent. = 3% of fuel input is wasted and vented to the outside.
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    Propane costs more because it's higher energy per unit than natural gas.

    Propane is still $2.09 a gallon because that was the price that the fuel supplier contracted with their distributor for whenever they signed the contract. Some have been able to get out of those contracts and resign with distributors offering lower prices, and some haven't.

    They don't own the fuel, it's contracted from a distributor source, and the price is determined by the terms of their contract.

    You actually got a good deal if you signed at $2.09 this summer. I know it was higher than that because my contract just got cancelled and reinstated at a lower price thanks to my fuel guy getting a contract with a different distributor.

    Electric heat is not necessarily any cheaper as it takes a lot of electricity to heat a house.

    the net result is, because of the way the heating oil market works (contracts to buy) versus the high turnover of something like gasoline means that prices do not change rapidly the way they do in the automotive fuel market.

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