propane

Mike in Mn. · Mar 18, 2012

Just reading the post about the price of gasoline below. Last fall the Co-op doubled the rent on my propane tank, they said I hadn't bought any in over 12 months so they had to double the rent cause of the price of steel, makes no sence to me but I suppose they needed some excuse. I heat with wood in the house and the shop and this year I didn't even lite the pilot in the shop. I buy all my farm fuel from them as well as chemicals and twine etc. A fellow works hard to make wood and save fuel and what does it get you, you get to pay more for what you do use. Does any one else feel that there's something wrong with this picture?? This fall I'm going to build a huge solar panel across the front of my shop and then tell them what they can do with that propane tank. All I want to do is keep it from freezing when I'm not working in there.

Mark-Mi · Mar 18, 2012

Lets see, you did not use any propane but you think they should leave a tank there for nothing.I don't think so.

Mike (WA) · Mar 18, 2012

No, he said they doubled the rent- which I assume means he was paying some rent before. Don't see why the price of steel should cause it to double, although its one tank they would not have to make for a new customer if it wasn't sitting, unused (from their standpoint) on your property. Think I'd try to negotiate a bit on the rent increase.

DannyE · Mar 18, 2012

I had the same thing happen. I shopped arround,checked prices, so they raised the rent and would not compete with other suppliers. So I shopped arround, found a tank for sale and bought my own (tested) tank. Now I call arround to area suppliers and get the best price. They were not happy when they picked up their tank.

fixerupper · Mar 18, 2012

Is the propane division separate from the ag products at your supplier, or is it all one? If it's separate, they wouldn't care how much other products you buy from the other divisions. They must still be buying new tanks to rent out to customers if they're concerned about the price of steel, so there must be a need for more tanks. Are hog buildings still going up in your area? Most of the hog companies own their tanks. Just thinking out loud. Jim

JDseller · Mar 18, 2012

You are surprised that they want some income from their investment in a tank????? You did not mention what the rent was either.

The local COOP here charges $45 per year if you don't use more than 300 gallons. That is still not a very good return on a tank that will cost $2 a gallon new.

So if you have a 500 gallon tank they have $1000 in the tank. So the $45 dollars is a 4.5% return gross. Not going to be buying a lot of new tanks for that type of return.

I have owned all of my own fuel tanks for the last twenty years or more. You can usually save a few cents per gallon by shopping around for propane, gas or diesel. I figure my tanks have paid for themselves several times this way.

Son just came in and read this post. He says that several of the suppliers around here now have a 300 gallon minimum each year or they just come and get the tank. It seems that they are short on tanks each fall so they want to put them with people that will use some gas.

I find it amazing that your supprised that they want to sell gas not just give out tanks.

Mark-Mi · Mar 18, 2012

A very large supplier around me charges ONE dollar a year rent. I assume that is to prove ownership. His gas company has invested money in that tank. They want a return on investment or they will place the tank where it will. Has nothing to do with the price of steel.

Zachary Hoyt · Mar 18, 2012

We have a 100 gallon tank for our gas stove and never had to pay rent at all, but the tank does belong to the company and has their sticker on it. Can't remember if we paid a deposit on the tank when they brought it or not. We get it filled about 3 times a year, probably.
Zach

LJD · Mar 18, 2012

Yeah, but that's why I bought my own bulk tanks for propane. We use very little but still buy at the bulk rate because we fill once a year.

You ought to buy yourself a 500 or 1000 gallon tank and find somebody who fill at the lowest rate on an ad hoc basis.

ohiojim · Mar 18, 2012

if you're not useing any propane why not buy a 100 lb. bottle for emergency

Hay hay hay · Mar 18, 2012

JDseller: Well said.

John T · Mar 18, 2012

Thats why yearsssssssss ago at an auction I bought my own propane tank. That way I can buy from the cheapest supplier. I remember when I bought it nay sayers all gathered and warned me I had to have all sorts of permits to haul it home but I loaded her on the trailer boomed her down tight n got er done and used it ever since.

I usually lock in my winter price at the time of the summer fill up in July, its worked well.

John T

Red Mud · Mar 18, 2012

Just keep your eye open for propane tanks set'n and not being used. stop and ask about'em, I got a 250 gallon tank free and the guy even loaded it on my F350 flat bed.

Anonymous-0 · Mar 18, 2012

I have Amerigas and they have tried to charge me tank rental. I went into them not in a good mood and told them if they charge me rental they could take their tank and stick it where the sun doesn't shine.Thats been four years ago and I still have the tank and pay no tank rental.

Gun guru · Mar 18, 2012

I bought my own tank 3 years ago. $1100 for a new 500 gallon tank, I was tired of the BS tank rental fees and the "minimums" of propane that I had to buy.
The main natural gas company in the area now wants to put natural gas in my township, it will still be several years before it gets to me. After adding up the costs and $$$ per foot to run 1000 feet off the road to my home it will likely cost me $8000. (I heat with wood pellets which are a little cheaper than nat. gas.) I cant stomach paying $8k for setting up nat. gas. I use about 500 gallons of propane per year, that is with the pellet burner.

JayinNY · Mar 18, 2012

Just like buying gasoline, I think it's funny when I'm standing there filling up, and a person comes out and raises the price on the gas, as I'm pumping its going up, same stuff in the tank 5 minutes earlier. lol

Anonymous-0 · Mar 18, 2012

Yeah, they told Me That Too!!! I called them Up and told them to come get the damm thing like I told them to 5 years ago And I wasn't going to pay any more rent than the past 5 years!!! that being 0.00 of couse. well it's been 3 or 4 month and the tank's still here, never got a bill, going to call them and say someone stole it, and just sell it to someone.

Mike M · Mar 18, 2012

I bought my own tank too. When Ferrel gas started charging me rent before I had my own I tried to buy that one but they refused. They have tanks sitting around and so does amerigas.

wilson ind · Mar 18, 2012

bought 3 1000 gal tanks some time ago resold 2 paid for mine and tank fill Hauled across state lines and weigh scales Spray painted empty-- junk on tanks. Repainted when arrived No problem!!

fixerupper · Mar 18, 2012

I own one and rent one but I've never been charged rent. The rented one is 500 gal and it's filled three times a year. I looked at the MFG date and it's older'n the hills so they don't owe anything on it. Jim

john in la · Mar 18, 2012

When I moved in 1990 I rented a 150 gal tank for $50 a year.
A few years later it developed a small gasket leak. They repaired and re-filled the tank for free.
I added a porch on the house and by state law could no longer have a 150 gal tank in that spot. Had to move it or get a smaller tank. They brought out a 100 gal tank and swapped it out. Guy told me the rent price had gone up since I had gotten the tank but they never raise the price to old customers. New customers would have to pay the higher price.
I put in a heat pump about 6 years ago so I got rid of propane all together.

By the way.......
It is against the law for the average Joe to haul a used propane tank that weighs over 1000 lbs on the highway. It is considered hazardous materials even if it is empty.

IaGary · Mar 18, 2012

We just discucced this subject at our last coop board meeting.

We have not raised the rent on lp tanks since 1995. We get $25 for a 1000 gallon tank and $13 for a 500 gallon tank per year.

Cost of tanks are going up all the time, almost double what they were in 1995. Cost of labor is up. Cost of trucks are up. Our margin has not risen enough in the last 15 years to off set all these higher costs.

If you were in the business what would you do?

Are you making the same you were in 1995?

Yes there are companies that are trying to gouge you but most of the locals are not.

How long has it been since they raised tank rent for you?

Gary

Ray · Mar 18, 2012

I put in a generator that runs off propane for a backup.The gas company knew this when they installed the tank.A year later they want 150 bucks a year for tank rent cause i'm not using enough propane.I told them to come get the tank,i'm not paying it.They then said they would waive it this year.

Ray · Mar 18, 2012

There's a place near me that sells used tanks. They get 750 for a 500 gallon.

John A. · Mar 18, 2012

Guys, I just walked out to see what yr the tank at my home was, Built in 1950. It is a 62 yr old tank, Considering tank cost then, as opposed to now and fuel then, in the single digits or teens and now in the high $2s,...Why not drop the coin and buy a tank either new or used an get rid of the headache of tank rent??? over the long haul you will be happier, Yes any maintenance that is necessary is on you, so is you car, truck, Home, I do believe that tank maintenance is tax deductible as home repair is!
I do believe my family has paid for this old girl many, many times in savings.
This old tank is still current and will serve this house well for many yrs to come. And no tank rent, or minimum gallon/yr usage headache. It probably made less Dollar sense in 1950, with $.09 Propane. Than it does in 2012 at $2.50/gal Propane!
If you are not using that much LP, and not happy with your supplier.... then loose the tank and come up with another! of some size! and be done with it!!!
Later,
John A.

IaGary · Mar 18, 2012

$750 for a used tank is reasonable. $25 a year rent would take 30 years to pay for it. And if it goes bad before then you have to find another.

The coop tests and paints mine as well.

But if you need the option to shop around then you do need to own your own.

Has anyone had to have the tank tested before a new supplier will fill a tank you own?

Gary

showcrop · Mar 18, 2012

Gary, How often do they need to be inspected and how much does it cost?

IaGary · Mar 18, 2012

Our Insurance company requires us to inspect and switch out the primary regulator every 3 years on house tanks.

We estimate it cost about $100 per inspection.

If you own your tank we charge $75 to update and inspect that includes the new regulator.I believe?

Gary

Hay hay hay · Mar 18, 2012

I need some extra help around the farm. Never sure when I will need it. Sometimes I need help all day. But lots of times I go for months without needing any help at all.

Why don't you come on over and sit in your truck everyday to see if I need any help. If I do, I'll pay you the hourly rate. If not, the view is good and you can listen to your radio.

That is what you asked them to do. Come sit by your house all year long for no pay...unless you need them.

pat sublett · Mar 18, 2012

When did house repairs become deductable. Don't tell IRS

JMS/.MN · Mar 18, 2012

That is really cheap rent. I own a 500, rent a 1000, for about $139 per year. Supplier gives 5 cent discount on LP into owned tanks. I"d like to find another 1000. Used are still over a buck a gallon here.

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