!#71# Learning About Propane Gas Prices and How Propane Purchasing Works

!±8± Learning About Propane Gas Prices and How Propane Purchasing Works

Propane gas prices can change substantially from season to season and year to year. You should take the time to familiarize yourself with the very process of pricing propane. The good news is that there are plenty of sites out there that aren't trying to sell you propane that will educate you on the ways of the propane world. Many don't realize that purchasing propane is much different from purchasing gas or even electricity (your electric bill).

The realm of propane gas prices is volatile but there are ways to lock in a price for the duration of your contract. Before we get into that let's talk about how you purchase your propane storage tanks. Like gas in your car, there is a tank where you store the fuel for access when you need it. Unlike gas however, this type of fuel is pressurized in the tank. This requires special rules and procedures for acquiring, storing, and handling it. Most people purchase propane tanks from the store or an authorized propane dealer (licensed) then when they need a refill, they simply take the tank back and have it refilled at a special filling station. The more popular way to do this with smaller tanks as, for example, are used in bbq grills, is the exchange tank. You simply leave the empty tank with the retail establishment and take a new identical tank and you do this every time you need a refill. You use up all the propane before going to get more.

For larger tanks used in major appliances such as a propane generator or propane heater for the home, there is a whole different procedure. When you're purchasing 500 gallons of propane at a time you can't exactly lug this huge tank into the propane retailer. For this you have a propane truck come to you and refill it much like the gas trucks come to gas stations and refill their pumps. Propane gas prices are more negotiable at this volume and there are many choices of how to pay for this. Most people join a club, which is a company that sets up a contract with you for your propane refilling needs. They will either give you a quote for a fixed price for your propane, or will set a price range estimate. You get a different price if you rent the propane tanks from them than if you simply get the propane fuel for your own tank. Often with a lease option you get a discount on the price per gallon, but you are also locked into getting your propane from them, so there are some pros and cons to either side.