Jack W. Manix wrote:
> Last year we got burned with a pre-pay for the first time in around 10
> years and paid 2.34 per gallon. This year the prepay was much better
> in July at 1.449.(we use around 15M gallons). Propane dealers usually
> get their prices for pre-pay around the end of June and then send out
> contracts. You can negotiate a price with your dealer at a certain
> rate above the Selkirk, NY wholesale price if you use a fair amount.
> Suburban has always been high in our area and this link shows that
> some customers were trying to get together for a class action suit in
> NY and upstate Vermont last year:
> http://suburban-propane-class-action.com/. Don't forget also that as a
> farmer you shouldn't be paying tax on the propane used at the farm.
> Walker Farm
> *From:* [log in to unmask] <mailto:[log in to unmask]>
> *Sent:* Saturday, March 27, 2010 9:40 AM
> *To:* [log in to unmask] <mailto:[log in to unmask]>
> *Subject:* Re: What's your propane price?
> We are paying $1.82 on a contract price for 10,000 gallons. This is
> an average price for the 2008-09 and 2009-2010 heating seasons. I
> renegotiated my contract in February 2009 after contracting for $2.12
> in the Fall of 2008. The price in February of 2009 had fallen to
> around $1.45 and I wanted to take advantage of that price. So I
> negotiated a 2 year average price. We buy from Dead River, formerly
> Pratts Propane.
> I hope this is not too confusing. 11 degrees this morning.
> Crossroad Farm
> --- On *Sat, 3/27/10, Sally Colman and Richard Wiswall
> /<[log in to unmask]>/* wrote:
> From: Sally Colman and Richard Wiswall <[log in to unmask]>
> Subject: What's your propane price?
> To: [log in to unmask]
> Date: Saturday, March 27, 2010, 6:15 AM
> Hi All- I'm paying $3.52/gallon (for residential use, from Blue
> Flame). Is that high? What are other people paying?
> Richard, CateFarm.
> 12 degrees F this morning (F is for Fahrenheit...)
> www.walkerfarm.com <http://www.walkerfarm.com>
> Voice 802.254.2051
> Fax 802.254.1173
$1.67 this year and $1.57 last year from Irving. Last year's contract
for 16M, this year for only 10M because at contract time price was
falling and we didn't want to get burned if recession went on and prices
went lower. ( and it did! )It's a gamble. Last year at contract time, I
saw the price was falling daily so I kept putting it off and watching
the price of crude oil on a daily basis. I found out that Irving sets
the daily price in the AM and sticks with it all day. Therefore, of
petroleum prices look like they're into a steep increase or a disaster
like war or hurricane causes a speculative jump, you can lock in that
day. Of course, once in, you're stuck. The negotiated price above
Selkirk is a good idea, but Selkirk is always higher than what comes
from Canada. I'm not sure there is a LP price report anywhere, but crude
oil on Bloomberg pretty much indicates where it is relatively. In any
case, better to deal directly with the company base than with
on-the-road sales people; they're unreliable and sometimes disappear
after you think you had a verbal deal. Some of us have had bad
experiences on this issue. Remember, propane is a very competitive
business in many areas and if you use a fair amount, you can deal.
Of course, the next logical step is for all of us to get together
and approach suppliers with a group offer and see what we can work out.
Personally, I'm grouped out so if someone wants to take up the torch
(pardon the pun), go for it! .. Jake
PS: 6 degrees this AM, probably spent $150 on gas last night!