 JimCTProbably Pricing PropanePremium
join:2006-01-11
Connecticut
kudos:1 | reply to gregamy
Re: [House&Home] Anyone switch from oil to propane? Very confident on those prices- I've been in the $1.80 to $2.60 ballpark for the entire time I've lived here. And the flaw in your thinking of the lease is the lease price- tell me who will lease me a 500 gallon tank for $90/year? Maybe on a smaller tank, but the bigger the tank, the bigger the leasing cost. Don't take my word for it, call around and ask how their leasing cost/pricing scheme changes for a 500 gallon underground vs smaller tanks.
Where Osterman gets you is that they don't charge a flat leasing fee for my neighbors- it's built into their price per gallon on EVERY gallon they buy. It's not uncommon to see their price easily north of $1 per gallon over mine on a average fillup... after all, where are you going to go for the next 5 years. Then try to buy that sucker at the end of your lease... you'll get no help from them... they're quite happy having you at that price.
I have no idea the life expectancy of that tank... I'll let you know how I made out in 25 years.  |
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JimCTProbably Pricing PropanePremium
join:2006-01-11
Connecticut
kudos:1 | reply to cowboyro
said by cowboyro:said by JimCT:I don't want to beat the point to death, but what are the specifics of the propane price assumed in your model? Average retail price in NE. Since the cost is 40% higher on average, saving few pennies doesn't make a difference. However some pennies can be saved with prepaid oil, so back to square one. It is what it is I guess... I still argue that the homeowner has more control over propane costs than oil depending on tank ownership and size... I don't buy their estimate of "average price" as I've never come close to paying that for my fuel. To each their own I suppose. As long as I can turn up the dial and my family stays warm and still afford to keep the truck delivering fuel, I guess I'm happy with my choice. |
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 gregamy
join:2003-05-22
Middletown, CT
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| reply to JimCT
said by JimCT:...the flaw in your thinking of the lease is the lease price- tell me who will lease me a 500 gallon tank for $90/year? Sure, but why would I spend more money to lease a 500-gallon tank when I'm on automatic delivery and the price of the propane is the same? Remember, the only value you offer in getting a 500-gallon tank is for the price break; without that price break I'll get a 100-gal (or smaller!) and let the propane company deal with delivery as I need it.
My current contract with Daniels Propane (for the garage only) is $90/yr for their 100-gallon tank and $3.27/gallon for the fuel, auto delivery. Set it and forget it. We'll see how that experience goes. - GA |
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| reply to JimCT
said by JimCT:It is what it is I guess... I still argue that the homeowner has more control over propane costs than oil depending on tank ownership and size... I don't buy their estimate of "average price" as I've never come close to paying that for my fuel. To each their own I suppose. As long as I can turn up the dial and my family stays warm and still afford to keep the truck delivering fuel, I guess I'm happy with my choice.
And again, the same is true for oil.. One of my neighbors had a 1000gal oil tank, he was filling up during summer when prices were lowest. Extra discount for COD on top of it.
I'm producing the bulk of heat using heat pumps, current cost in the 30F range is some $17/MBTU - roughly half of the cost using oil. |
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JimCTProbably Pricing PropanePremium
join:2006-01-11
Connecticut
kudos:1
1 edit | reply to gregamy
said by gregamy:said by JimCT:...the flaw in your thinking of the lease is the lease price- tell me who will lease me a 500 gallon tank for $90/year? Sure, but why would I spend more money to lease a 500-gallon tank when I'm on automatic delivery and the price of the propane is the same? Remember, the only value you offer in getting a 500-gallon tank is for the price break; without that price break I'll get a 100-gal (or smaller!) and let the propane company deal with delivery as I need it. My current contract with Daniels Propane (for the garage only) is $90/yr for their 100-gallon tank and $3.27/gallon for the fuel, auto delivery. Set it and forget it. We'll see how that experience goes. - GA I think we agree more than we realize- for you, it makes sense given your purpose to lease a tank and pay the 3.27 per gallon. At my burn rate given my much heavier propane consumption, that price would be a more crushing burden. No one size fits all... buying the tank works for me but not for you given 2 different circumstances. The OP is thinking of a whole house propane conversion... a situation more similar to me and very different from your needs.
EDIT: As a word of advice, call up Daniels and see what the leasing cost would be for a 120 gallon tank or a dual tank setup versus the price differential. Your optimum tank size will depend on your anticipated consumption per year. It's tough for you to ballpark that, but if you give them your intended usage, they might be able to offer you a bigger tank for not much more leasing fee with a lower price per gallon. Bigger tank with more consumption=lower price per gallon. Just a thought. Best of luck. |
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JimCTProbably Pricing PropanePremium
join:2006-01-11
Connecticut
kudos:1 | reply to cowboyro
said by cowboyro:said by JimCT:I don't want to beat the point to death, but what are the specifics of the propane price assumed in your model? Average retail price in NE. Since the cost is 40% higher on average, saving few pennies doesn't make a difference. However some pennies can be saved with prepaid oil, so back to square one. You may be talking in pennies with prepaid oil, but the difference between my neighbors' prices and mine is measured in dollars. Not sure how much can be saved with a 1000 gallon oil tank over a standard 275 gallon setup, but with propane ownership and tank size savings are substantial over the "average price" for CT and New England. |
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| reply to pandora
With the frequent gas explosions in the news regularly, I am shocked that anyone would still even THINK about converting to gas.
If you have a sediment problem, it means you have a single pipe pump system, which means your tank will accumulate water, sediment and eventually rust and leak.
I would convert over to a two pipe (recirculating) system immediately, if I were the new owner of said dwelling, and let the oil filtration system do the job of keeping the tank clean. When the burner runs, the pump is continuously circulating oil from the tank, through the filter and back to the tank, minus a small amount used by the burner. It's a great system, and it also is self-priming, should you run out of fuel.
People are so afraid of inground tanks because they don't know the facts.
Properly installed tanks, (right soil conditions, proper pH, etc.) proper design to prevent condensation buildup, etc., provide a great cost benefit. They also can be mandatory if you live in an area without road access during the winter. Large tanks can be an inflation hedge, enabling the homeowner to buy oil when the price is affordable and ride out the oil shocks. Large cash purchases make it possible to buy oil at 20 cents off the gallon price, when the top 20 oil companies are surveyed--there is usually one or two that will offer a lower price for over 1000 gallon purchases for cash.
The scares over oil leaks are blown out of proportion, and the hypocracy of government is outrageous when cities and towns are the ones spraying tens of thousands of gallons of oil onto the local roads every spring for resurfacing. And they worry about a few ounces a year seeping out of a poorly installed 100 year old tank. Who's zoomin' who? |
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pandoraPremium
join:2001-06-01
Outland
kudos:1 | Nope, I have a 2 pipe oil system. |
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| Then how do you KNOW you have sediment? Your original post said you MAY have sediment.
You mention oil vapor odors too somewhere in this thread. There should not be ANY oil vapor odors, unless you have a leak somewhere. The only time you might have such an odor is after a sloppy procedure of changing the filter and spilling some on the floor. It can stink for a few days until it evaporates, but aside from that, oil odors mean something's not right somewhere in the plumbing. |
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