Residential Propane Tank Rental Rates
Some propane suppliers charge propane home heating customers a rental fee for using their propane tank. In many cases, this propane tank rental rate is charged one time per year on the anniversary of the start of propane service.
The rental rates for propane tanks can vary depending on a number of factors. These factors may include the local competitive environment, the size of the propane tank and/or the policy of a specific propane supplier. In general, propane tank rental fees can range between $1 per year to over $100 per year.
With common residential propane tank sizes ranging between 150 to over 1,000 gallons, the rental fees may correspond with the size of the propane tank. In other words, the larger the propane tank, the higher the propane tank rental fee.
If the propane tank rental fee is based on the local competitive environment, the propane supplier may conduct periodic checks to determine the propane tank rental fees being charged by other local suppliers. If this is the case, the propane company may choose to align it's propane tank rental rates within a competitive range.
If the propane tank rental fee is based on the propane suppliers company policy, it may or may not be competitive based on the propane tank rental fees being charged by other local suppliers.
In summary, propane tank rental fees may be based on any number of factors. However, propane consumers should always make some telephone calls to local propane suppliers to find out the typical propane tank rentak fee. If all of your neighbors are paying $1 per year to rent a propane tank, you want to make sure that you paying a competitive fee. Overpaying by $50 to $100 per year, when other local propane customers are paying $1 per year, is not competitive. This situation is more of a problem when you calculate overpaying for a propane tank rental over five or ten years or more.