Propane Costs

I just spoke to my local propane salesman (I clean his rentals) and he told me that they are expecting a major shortage this year and to expect $5 per gallon pricing! Figures, now that I am going with the Judson, my heating costs will go through the roof.

I am thinking about installing a 500 gallon tank in the back yard off the alley. The city codes says only if it is used to heat a shop....so, I am thinking of running a trench line to the garage and running propane heat this winter. That will allow me to lock in the price at less than $1.50 and be under a lease for the tank at $55 per year.

That would also allow me to fill my belly tank for the LG heater without having to locate a vendor across town U-haul is charging over $3 per gallon). It makes sense to me, but there must be a few negatives or else everyone would be doing it. So, I am asking the question here: What are the negatives to this idea? What am I missing?

Some of the negatives I can think of now is theft or leaks but if you build a fence around the tank, you can eliminate theft off the worry list, do those guys that lease the tank offers leak guarantee ?
You don't smoke, do you Rob ? ( I know you have nine lives but you've used a few already, I wouldn't even want to start counting, lol )

The fence is a good idea...don't know about the leak part.

Nope don't smoke...might make the neighbors behind me a little nervous though.

just filled mine too.
feel really weird today. Sooooo calm here in Seattle right now.
nothing to do either. First time I've been caught up since Michigan thawed out.
Scary quiet, like a bomb's about to hit. somebody come gimme a hug.

Storming here right now....probably 2 inches so far!

only reason i dont....umm live in a neighbor hood, and cant really put in a tank...lol

u haul is the worst place to get propane. they take forever to get you filled up, I sat in there for like 30minutes... they had 3 employees and 3 customers.

plus they charge 4.10/gallon here and I get it across the street for 2.60

Without a pump on the line fill ups will be slooooow.

Owning your own tank allows you to buy from ANY provider and brings a cheaper price.

Just get in good with a oil supplier. Be loyal and work out a deal. That what I have done.

Heck most gas station around here that sell propane have been charging $4-5 a gal for the last yr. or more. I've been buying mine from the distributor (The co. with the big filling trucks that goes out and fills the gas stations tanks) for at least 5 yr. now, the price is about half the cost of the gas stations. Luckily for me there 2 of them within a couple miles of my house. Because The area I'm in there's no possible way I could have my own large tank on my residential property. The good thing about propane use, if you're just using it for the LG heater is I only use a gallon a day at the most, I wish I could say the same thing about Gasoline that cost $4.50 a gal. here.

the pump is the more expensive part of getting a big tank at your house.. if your only using it for the LG I wouldnt bother.

eventually I will because were running machine, LG, and soon diesel truck supplemented with propane also a second #3 LG

if I do then I will also be getting my new water heater and dryer in NG/LP model so I can run them on it as well.

overall this will save a lot in a year.

just the LG I wouldnt, tank exchange is cheap for the 5gals 20 bucks and you can just keep several with you.

Even if you can buy BBQ exchange tanks filled for $20 that's still $5 a gal......around here they're $35-40. You don't have a 'belly tank' on your truck/van?

Freemind1 wrote:Without a pump on the line fill ups will be slooooow.

Owning your own tank allows you to buy from ANY provider and brings a cheaper price.

Now this is interesting...I didn't know I would need a pump. I thought it just ran off pressure to fill.

im not aware that you can even transfer tank to tank without a pump, it is a liquid.

you can use pressure to create gas that will run appliances or equipment but not fill a tank as far as I know but I could be wrong

I guess I have a few more questions to speak with the salesman about...thanks gang.

milspec6 wrote:

Freemind1 wrote:Without a pump on the line fill ups will be slooooow.

Owning your own tank allows you to buy from ANY provider and brings a cheaper price.

Now this is interesting...I didn't know I would need a pump.  I thought it just ran off pressure to fill.

No, when you have your tank filled anywhere, there's always a pump that's used to fill your tank.
It's what makes all the noise when your tank is being filled.

Not using a pump, I think what freemind was referring to, can be done, but it's really slow and will only 'equalize' the tanks.