Propane tank rental fee???

Gun guru · Jan 13, 2010

I have a 1000 gallon tank that is 20 feet from my home and I use about 800-1000 gallons per year of propane.

Today I received in the mail a bill for $120 for a tank rental fee, keep in mind that I am paying about .40 per gallon higher for propane then what all the other companies in the area are charging.
I remember reading a rule book from my propane company that says: if you use less then 1600 gallons per year you will be socked with a $120 per year fee. Well------

Should I
A-- not pay the bill
B-- pay 1/2 of it and if they get pi$$ed say I am changing suppliers
C-- pay the bill and then change suppliers after my tank runs empty.
D-- pay it and like it.
E-- Buy my own 500 gallon tank for $1,500.

I want some opinions.
I think I am already paying a higher rate for the propane for the tank usage.

JD2ACWD · Jan 13, 2010

same thing with me have to use 700-800 gallons or pay 50 bucks a year for a tank that is old as I am (48) and covered in moss and rust,they have been sending me a bill for 3 years now ,I told them to bring me a new tank and I'll pay the 50 bucks,well my ugly old tank is still sitting here!!!

Ray · Jan 13, 2010

You can buy used 500 gallon tanks almost anywhere for 500-700 bucks.

Owen Aaland · Jan 13, 2010

If you are paying 40 cents a gallon more that if you owned you own tank and the rental is $120 per year, the difference is $400 - $500 a year. Looks like about four years to recover the costs of owning your own tank.

Stephen in SoKY · Jan 13, 2010

Suburban Propane?

IaGary · Jan 13, 2010

Our local coop is $20 for tank rental. And everyone pays the same price for LP whether you own or not.

Change companies.

Is this Ferrellgas?

Gun guru · Jan 13, 2010

No not Ferrell.....They suck. I used to have them and didnt like the invoices of $35 here and another add on fee there. (that just pi$$es a guy off)

My current company is Northwest Propane they have several offices. Not nationwide though.

730 virgil · Jan 13, 2010

25 dollars a year. i'm on a plan company tracks degree days and figure out when they need to bring more gas.
they take care good of tank they inspect tank to make it is in good condition.

Kevin Schmidt · Jan 13, 2010

Pay the bill and like it, they were straight up with you if you knew you didn't use so much gas there would be a fee. The 0.40 you are paying too much for gas is a seperate issue

Good used tanks with certification run about $1 a gallon, buy one and have whoever you want fill the tank

Mike M · Jan 13, 2010

Start calling around for a better deal. My neighbor changes all the time and seems to get good deals. I own my own tank and get good service from Kelly's Propane out of Mansfield Ohio.

A third option you not mentioned is to call them and tell them to come get it and credit you for what gas is left in the tank.

It would be nice if they would sell you that tank right there. I tried offering this option to Ferrel gas and they said no way they don't sell tanks. I had them pick theirs up and then credit me for what was left in the tank. Too bad for them they went by the broken gauge and not actually sucking it out and measuring it. LOL

JayinNY · Jan 13, 2010

No, if your not happy with them, tell them to come get there #uc$%&g tank, then find another supplier, simple as that.

colekicker · Jan 13, 2010

Local companies around me charge $60 per year. I am just waiting to find a cheap tank so I can fill my tractors from and not running the LP burners.

Anonymous-0 · Jan 13, 2010

I guess things are diffrent in the good old south. Local natural gas has been expanding in to rural sites so used tanks are very cheap.
Saw 3 1000 gal that had nurse hoses added sell
Last week at auction for Less than $750.00 ea.
Seems the 1000 tank really brings less than the 500 gal because they are harder to move. Most people own their own in this part of the country.

Anonymous-0 · Jan 13, 2010

Next year buy 100 gallons from them ($40 premium plus $120 rental = $160) and the rest from a competitor. Since you are now paying $520 ($400 premium plus $120), you will be $360 ahead!

paul · Jan 13, 2010

No pay, come pick up your tank, done with you. Period.

Find a good used tank, often $1-1.50 a gallon, own your own - have bill of sale.

Then you can shop around for the best price for fuel from all the suppliers.

They can't fill a competetor's tank, but they can fill one you own.

You can do whatever you want, but this is the normal end to that nonesense. Their game is that you aren't using enough to justify having their tank sitting there, so have to charge you rent. They might offer to bring you a smaller tank.... It'll be the same game again in a short time tho, their goal is to get you coming & going.

With your own tank, a new supplier might be required to inspect your setup, been some new laws on that, typically no hassle unless the law is new in your area.... Should be little to no fee on that.

You'll be money ahead in a year ot 2.

--->Paul

OH Boy · Jan 13, 2010

They are putting some screwz to you no doubt about it. I was going through the same thing a fwq years ago and finally broke down and bought my own 1000 gallon tank. After three years now, I think the tank has paid for itself already from the better deal I get on my propane. Not only am I not paying the .40 a gallon surcharge but I can shop around for the best deal so I think I am probably saving more like .60-.65 a gallon compared to what I would have paid with the company I used to rent a tank from.

I have been buying from Thrifty Propane in Medina Ohio the last couple of years and they have been very dependable and have very competitive prices. I have been buying prepaid gallons in the Summer the last couple of years, when the price is low. They just bring the propane out to us when we call. No deadline on when I must use the gallons by.

kendak · Jan 13, 2010

I pay $1.00 a year on a 500gal ...just had it filled for $2.45 gal...house & fill my LP tractors with it ...Kent

Kruse · Jan 13, 2010

I would have them come pick up their tank AFTER you have purchased your own. I bought a 1000 gal tank for $1000 about 5 years ago. After you have your tank in, shop around for the best price on propane. Make sure you call your current supplier for a price quote and rub it in a little bit by saying your name and emphasizing that you are just calling for a price quote. If they have the best price, order it from them.

pburchett · Jan 13, 2010

I know someone that has brand X companie"s tank, buys propane from then once a year and gets the rest from company Z the rest of the year. They just tell them they finally bought the tank from that company. All company Z wants to do is sell propane. Not trythful, but they do it.

kyhayman · Jan 13, 2010

What I did was finish up what was in my tank and tell them to come get it, that there was no way in h--- I was paying rent and a premium price. Got Southern States to set me a tank and started buying gas from them.

Case e · Jan 13, 2010

I would buy your own tank, that way you can shop where ever you want. 1500/.40= 3750 gallons to pay for it, about 3 years of paying premium money for the same product and no choices.

teddy52food · Jan 13, 2010

I own my own tank. Some years back, I was calling around for prices & found one lower than my usual supply. But to have them fill it, they would have to inspect my set-up first. I don't remember the charges, but it was still cheaper to get filled by my usual supplier.

Joe Pro · Jan 13, 2010

Ferrel Gas has did nothing to us but screw us like crazy.

So we ended up switching to sunrise and no problems since.

John A. · Jan 13, 2010

Gun Guru, Do not pay any thing for now! Start looking and find a good used 1000 gal tank during the winter. I wouldn't get the new tank that you spoke of, toooo much money IMO. A good used 1000 gal should be gotten for that $1500 dollar figure you spoke of.
Next, get it ready to install, Leak test, new valves, gauges what ever! Have it ready setting in the wings. Come spring or summer when you get to the lowest %age of LP tell the Company that owns the tank to come and get it. You can move it yourself if it is down to say 200 hundred gallons with a tractor and FEL!
Yes, during the intermediate time from now till you are ready to do a swap you may half to pay a small sum for some rent.
Just get a big enough tank to do what you need to do. Two smaller tanks will be a pain in the A$$, as opposed to one large tank IMO. Hope this helps.
Later,
John A.

Propane tank rental fee???

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