Propane
or liquefied petroleum gas (LPG) may be a more cost-effective option for your
household than electricity. In fact, the Department of Energy states that you
can save around 30 percent each year when you use LP gas to heat your water or
save up to 50 percent if you use it instead of an electric dryer for clothes.
However, certain factors could make you spend more than what you should be for
residential LP gas. When determining your expenses it is important to examine
the factors that are likely to affect LP gas prices. Variables like global
crude oil and natural gas prices, the climate, and the season are
uncontrollable, but factors like your LP gas provider and its services and fees
must be examined to verify if LP gas prices are eating at your wallet.
Propane
retailers can include or exclude certain services in their LP gas prices. The
most common services you are likely to see in the breakdown of prices are the
fixed prices for a given amount of time (usually a year), automatic delivery,
and the budget payment plan, which is designed to prevent you from paying all
at once to refill your propane tank for an entire year. These factors could
make LP gas prices
vary significantly from one supplier to another. If the propane provider
automatically delivers to you, but you order only when the level reaches 20 to
30 percent, ask what the provider charges per gallon for the delivery and
compare the rate with national or state averages to determine if it is
reasonable.
Consider
asking for the fees and charges that your LP gas company is charging you. Some
companies may include regulatory fees to cover their compliance with local,
state, and federal regulations on the handling, delivery, and transportation of
propane. Tank rent applies if you are leasing a propane tank. You should
consider the time of the year when you would usually have propane delivered,
too. LP gas prices are typically higher in the colder months or in winter, so
some households will stock up on propane in the summer in preparation for
heating in those months.