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Virgil Jones
03-30-2012, 08:24 AM
It's getting close to time for propane. Anybody have thoughts on propane futures right now. It's been coming down...

natural gas is really low (can't use it)

Winters over but summer driving is coming and propane seems to be tied pretty closely to gas prices.

My rate as of today would be $2.15...that's up from $1.96 last fall.

Always a gamble of when to buy it...
Oh, for the good old days in the late nineties of $0.59 per gallon.

Cecil McKenzie
03-30-2012, 08:29 AM
My propane guy says lower prices are on the way. At least 10 to 15 cents. I hope he is right. I am paying 1.84 at present.

Tom Fuhrman
03-30-2012, 09:30 AM
commodity price in WSJ yesterday was $1.25. You're right in that it normally follows the price of gasoline. In light of the fact that nat. gas is super low and appears to be staying that way for quite some time and a a warm winter, the demand for propane may be off a lot. When the electric producers start switching over to nat. gas many things may change, the whole energy equation gets more complicated every day. I sense in the future, it may cost as much to get our products to customers as it does to produce them, unless you're shipping by rail. Look for more rate hikes from UPS & Fedex & USPS. Have any of you bought plane tickets lately?

Victor Chiarizia
03-30-2012, 10:07 AM
who's your supplier virgil? i locked in last time @ $2.06 a gallon. vic

Patrick Casanova
03-30-2012, 08:53 PM
It looks like Natural Gas is going to be coming down even more...

http://online.wsj.com/article/SB10001424052702303816504577311911947295928.html

Eben Horton
04-06-2012, 12:07 AM
2.22 in Rhode island..

David Russell
04-06-2012, 08:43 AM
2.60 in s.c.

Cecil McKenzie
05-05-2012, 07:08 PM
Just paid 1.64 off the truck here in Kansas. My propane supplier sent a message to wait until August to prepay. I don't know if that advice would hold up everywhere .

David Russell
05-06-2012, 09:22 AM
Thanks Cecil

Cecil, how do you negotiate a price so low? is it volume? maybe also proximity? what other factors come in to play in your negotiations? Y ou always quote the lowest price, by far, is why i inquire.

Cecil McKenzie
05-06-2012, 11:26 AM
I think the main thing is location. They store propane in salt mines here so that works well for winter pricing. My volume isn't that great and is a lot less than it used to be. I do mention that I have thought about moving in to town for natural gas or switching to electric so that might help a bit but I really think it is just cheaper here in general. Some of the shops I know from around Saint Louis used to get it even cheaper than I do but I haven't talked to them in a while so I don't know if that is still true. Being in business for 26 years may help some.

Pete VanderLaan
05-06-2012, 12:17 PM
It's mainly location.

Josh Bernbaum
05-06-2012, 10:32 PM
$2.09 in Southern Vermont when I filled up last week

Victor Chiarizia
05-09-2012, 06:54 AM
suburban propane here in avl is offering $1.63 locked for a year if i become a new commercial account. no tank lease, free instal. i'll see what my supplier's counter offer is later this week. vic

Kenny Pieper
05-09-2012, 08:58 AM
suburban propane here in avl is offering $1.63 locked for a year if i become a new commercial account. no tank lease, free instal. i'll see what my supplier's counter offer is later this week. vic

Wow I wish we could get that up here in the mountains

Victor Chiarizia
05-09-2012, 09:22 AM
i'll use the "threaten to switch" to get a good offer from my supplier...blue gas out of spindale

Cecil McKenzie
05-09-2012, 10:36 AM
My supplier thinks that by July we will know more about where propane prices are going. He thinks downward. He says that despite more exporting of propane there is still a glut of propane and there is a glut of natural gas to compete with it . He said there are a lot of factors in the cost. Some of the pipeline companies have drastically raised the cost of transporting propane to various parts of the country. He said they are running out of places to store natural gas and some propane stores are extracted from natural gas before it is stored so that could be a factor that would decrease supply and increase cost. Overall he thinks for the immediate future propane will be more reasonable and possibly quite a bit cheaper. I am hoping he is right.

Hugh Jenkins
05-09-2012, 01:42 PM
I have even heard that natural gas is so plentiful that they might start liquifying it for shipment to Hawaii. That could put a welcome downward pressure on our propane prices. Things like this take a while though. We are still up around $5 per gallon.

TC Robertson
05-09-2012, 04:52 PM
$1.58 for my first fill of 904 gal. We get a glassblower rate here on Whidbey. I'm renting a friends shop till mine gets done. TC

Franklin Sankar
05-12-2012, 06:47 AM
Hugh that is very expensive. Wish i could help you , we do have tons of LNG, just come and get it.
it is crazy how just a while ago they did not have enough gas or oil now they have too much. As Tom would say its just a bunch of old farts.
Franklin

David Russell
05-17-2012, 10:31 AM
$1.99 south carolina. Suburbun in these parts is aggressively looking for business, undercut my new company and back with them after 2 months away.

Victor Chiarizia
05-17-2012, 10:56 AM
desided to stay with blu gas. fixed@ $1.75 and their payment isn't COD like suburban. vic