· First things first. Is you current supplier or prospective propane supplier registered with you state’s Department of Consumer Protection? Most states require suppliers to be registered and licensed. If a supplier isn’t registered, how can you trust them? When you decide on a supplier, call your state first to see if there is any complaints filed against them and to verify they are registered before signing up with them.

· Shop around. The price of propane can vary a great deal between competitors in the same market. You should call several suppliers to see what their current prices are and what type of service they supply. You can also shop online checking for the latest prices that a supplier is offering Prices will also vary depending on the amount of propane gas that you need delivered at the time. Obviously the more you order the more of a price break you should receive. Someone who is heating their home with propane should get a better price per gallon than someone who only uses propane for a pool or just for cooking.

· Talk to your neighbors. Find out who they are using and why? Do they offer great prices, great service, ask around. You will need to compare the same terms. Are the prices quoted by the supplier for a leased tank or a purchased one? Is the volume you need the same as your neighbor?

· Possibly form a buying group with your neighbors. There is power in numbers. If you and several of your neighbors can band together and form a buying group, you should be able to get a discount on your purchases. What propane gas supplier wouldn’t be happy to have a group to sell to each and every month?

· If you lease your tank, see if it would save you money if you purchased your tank. Simply ask for a quote from your current supplier AND from the competition. The next time you have your leased tanked filled, call around and ask for quotes for a delivery to a customer owned tank. With these figures, you now calculate whether it is cheaper for you to own your tank or to be a tank leaser.

· When receiving delivery make sure your ticket is accurate. Very simple right? Make sure the proper amount of propane was delivered and the amount on the ticket was the price you were quoted. Mistakes can be made, so stay on top of this.

· Check here to see the current trends in propane prices. If prices have been trending down, but your supplier’s prices is still the same or worse higher, call them out on it by showing the national trend from here.

· For any contract you sign, make sure you receive a signed and dated copy for your records. Also keep your keep all of your delivery receipts for about a year in case of any disputes. Keep these papers with your mortgage papers for easy retrieval if necessary.

· Ask your supplier for a discount. Why not, right? If you have been a steady customer for years, why shouldn’t you get a better price? It cost you nothing to ask, and you have everything to gain don’t you?

· When in doubt, asked until you are satisfied. Have things in writing so all the terms and conditions are clear to you. If anything is unclear, don’t sign until you understand the conditions.

There you have it, some simple steps to take to protect yourself from overpaying and getting the best propane prices this winter. Most propane gas suppliers are reputable, but you should always be looking to protect yourself.

After reaching a peak of 73 million barrels in October, an 11-year high, propane supplies have dropped precipitously through the winter heating season. The inventory draw appears to have tapered off last week as total U.S. inventories fell 0.5 million barrels to 26.8 million barrels. The Gulf Coast region led the decline with a 1.7 million barrel draw. All other regions realized a gain in propane inventories. East Coast stocks built by 1.0 million barrels, the Midwest region increased by 0.2 million barrels, and the Rocky Mountain/West Coast region was slightly higher.

Propane prices for the average residential use ticked up a half cent this week. The average propane price is now $2.688 per gallon. Compared to last year, that is a increase of nearly 36 cents. Wholesale propane gas prices rose just over 7 cents per gallon to reach $1.527 a gallon. This is a hugh increase of over 66 cents per gallon when compared to last years price at this time.

Propane inventories declined by 1.3 million barrels this week. This compares to the 4.8 million draw down back on January 15, 2010. Propane Gas inventories declined by almost 1 million barrels in the Gulf Coast region while the Midwest dropped about .4 million barrels. East Coast saw a slight build up in propane inventory.

Current Propane Gas Prices

The average residential propane prices jumped 12.7 cents per gallon to reach 266.1 cents per gallon. This was an increase of 35.5 cents per gallon compared to the same period last year. Wholesale propane gas prices rose 9.6 cents per gallon to reach 156.5 cents per gallon. This was an increase of 65.2 cents per gallon when compared to the January 12, 2009 price of 91.3 cents per gallon.

Propane Gas Inventories Continue to Nosedive
Propane gas supply across the country continued to fall last week. Total U.S. inventories drew by 3.5 million barrels to 46.0 million barrels total. The Gulf Coast region led the draw with 1.7 million barrels, while the Midwest region drew 1.0 million barrels of inventory. The East Coast regional propane inventories fell by 0.7 million barrels and the Rocky Mountain/West Coast region drew about 0.1 million barrels.

Current propane prices for the week ending 1/4/2010

The average residential propane price gained 7.3 cents per gallon to reach 253.6 cents per gallon. This was an increase of 22.6 cents per gallon compared to the same period last year. Wholesale propane prices rose 4.7 cents per gallon to reach 146.9 cents per gallon. This was an increase of 64.6 cents per gallon when compared to the January 5, 2009 price of 82.3 cents per gallon.

Propane Continues Seasonal Draw
Cold temperatures across the Nation led total U.S. inventories of propane to fall last week by 3 million barrels to 49.4 million barrels. The cumulative stockdraw during December totaled nearly 12 million barrels, about 2.8 million barrels higher than the most recent 5-year average, as spells of cold weather swept through some of the major propane heating regions during the month. The Midwest region drew 1.3 million barrels and the Gulf Coast region drew 1.0 million barrels. The East Coast and Rocky Mountain/West Coast regions each drew 0.3 million barrels of propane inventory.

Residential Propane Prices Increase

The average residential propane price rose 2.7 cents per gallon to reach 224.0 cents per gallon. This was a decrease of 20.3 cents per gallon compared to the 244.3 cents per gallon average from the same period last year. Wholesale propane prices dropped 2.1 cents per gallon, from 119.1 cents per gallon to 117.0 cents per gallon. This was an increase of 32.8 cents per gallon when compared to the November 17, 2008 price of 84.2 cents per gallon.

Propane Inventories Experience Large Drop
After reaching an 11-year high in October, inventories of propane settled in the lower half of the average range for this time of year, as seasonal demand increases. Total U.S. propane inventories fell by 2.9 million barrels to 65.5 million barrels. The Midwest regional stocks drew 1.6 million barrels and the Gulf Coast region drew 1.4 million barrels. The Rocky Mountain/ West Coast region drew 0.1 million barrels of inventory and the East Coast regional stocks experienced a build of 0.2 million barrels. Propylene non-fuel use inventories increased their share of total propane/propylene inventories from 3.3 percent to 3.4 percent.

What Influences Propane Prices?

What will propane gas cost to fill your tank this year? What kind of price can I expect from my propane supplier?Propane prices occasionally spike, increasing disproportionately beyond that expected from normal supply/demand fluctuations. The main cause appears to lie in the logistical difficulty of obtaining resupply during the peak heating season. Because propane is produced at a relatively steady rate year-round by refineries and gas processing plants, there is no ready source of incremental production when supplies run low.

Propane wholesalers and retailers are forced to pay higher prices as propane markets are bid higher due to dwindling supply. Consequently, higher propane prices are simply passed on to consumers. Imports do not offer much cushion for unexpected demand increases or supply shortages due to the long travel time. On the other hand, when propane prices do spike, the petrochemical sector may cut back on its use, thus freeing up supplies for other uses.

Propane prices are subject to a number of influences, some common to all petroleum products, and others unique to propane. Because propane is portable, it can serve many different markets, from fueling barbecue grills to producing petrochemicals. The price of propane in these markets is influenced by many factors, including the prices of competing fuels in each market; the distance propane has to travel to reach a customer; and the volumes used by a customer. More especially, propane prices are affected by Crude Oil and Natural Gas Prices. Although propane is produced from both crude oil refining and natural gas processing, its price is influenced mainly by the cost of crude oil. This is because propane competes mostly with crude oil-based fuels.

source:EnergyInformationAgency

Date    Weekly Mont Belvieu, TX Propane Spot Price FOB  (Cents per Gallon)

Use these prices as a guide when purchasing propane gas.