Residential propane use is a cheaper, greener way to power anything from your backyard barbecue, to your pool heater, even your whole house. But if you get your residential propane in Pennsylvania, you’ll find that prices differ from store to store and between Bucks, Montgomery, and Chester County propane companies.
Residential propane prices are determined by a number of factors. Here are five of the biggest:
Market Value: The market is one of the main factors for determining propane prices. Propane production around the world is what drives the market. When an abundance of propane is discovered in natural gas deposits, the prices will fall, while an increased demand or lack of supply can cause prices to rise. The best propane companies adjust their prices to the market, but there are those who only offer “fixed price” propane, which is often at a high-end rate to cover their costs.
Tank Size: This one is pretty obvious, but the size of the tank you use is certainly a big factor in the price you’ll pay. Bigger tanks mean more propane, which means more cost. Smaller tanks can cost you just as much if you’re someone who goes through propane quickly, so perhaps this factor should be considered “How much propane you use” as opposed to the size of the tank you buy.
Delivery or Pickup: If you use propane sparingly or moderately, it might be cost-effective to drive to a filling station instead of having your propane delivered. Refilling your own propane tank will save you big time on delivery fees.
Own or Lease: Those in need of larger tanks can potentially save money by owning their tank as opposed to leasing it. However, owning a propane tank is usually only a wise choice for those who understand proper propane tank maintenance. There is upfront cost to owning your tank, but it is an option that could save you money in the long run if you’re able to keep your tank in good working condition. However, renting or leasing a tank is typically not too expensive and can be the more practical option for many people.
Discounts: And of course, discounts offered by propane companies can certainly swing the price of propane. Many propane dealers will offer discounts to long-time customers or those who sign multi-year agreements.
