Propane Pre-Buy Can Help Stabilize Winter Heating Costs

Many propane consumers wisely use the summer months to plan propane service for the forthcoming winter.  Propane Pre-Buy is one common propane price protection plan used by many propane consumers to keep propane prices locked in for a specific volume of propane.

Remember that propane pre-buy only locks in propane pricing for a specific volume of propane through the summer.  In some cases, although a propane consumer is aware that they have used 1,200 gallons on average during the past three winters (for example), the same propane consumer may purchase more or less than the average propane gallons used during the past three winter seasons.

Why would a consumer purchase more or less than the average propane usage for the past three years?  A consumer may purchase more propane if a home improvement project during the past summer included expanding the size of their home and the addition of more propane consuming appliances. A consumer may also purchase more propane if another person or persons is moving into the home in the future (i.e. a family member, child, etc.).  A consumer may purchase less propane for a propane pre-buy program if the consumer installed some alternative home heating methods.  For example, a wood burning stove, an additional fireplace or other heating method may reduce a homeowners dependency on propane heating. 

Bottom Line: Pre-Buy Propane can be a very flexible program for homeowners.  Your propane pre-buy purchase may help you rest easier that your propane price is locked in for a specific quantity of propane during the winter heating season.  In other words, pre-buy propane can help take the suprise out of your future home heating bills.  However, make sure you do your homework to ensure that you research and compare propane pre-buy programs among all local suppliers to ensure you are getting the best propane price (and lowest propane service fees, if applicable) before committing to one propane supplier propane pre-buy program.

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