And now this?

Friday, February 07, 2014

And now this?

Hot on the heels of the remarkable and surprising news that CVS will remove all tobacco products from its stores by Halloween, came a strange and ominous letter from Paraco Gas in Riverhead, from whom I've been buying my propane since they were named Synergy, and probably before that!

The fact of the matter is that because we use less than 50 gallons a year for our kitchen stove, Paraco...

"...finds it necessary to start charging an annual equipment lease."

The equipment referenced is the steel tank and regulator value, and the imposition of the sur-charge is blamed on "the increase in steel prices."

Not okay so far... but that's as far as they went! No­where in the form letter was the additional cost mentioned.

Calling the Riverhead number and wading through numbered options more extensive than those to which one is sub­ject­ed when calling Cablevision, got me to Paraco's offices in Bohemia.

Came then the sticker shock: $85.00 plus tax each year!

This is most unsatisfactory! Time to explore alternatives!


1. Ray Malone said...

One alternative well worth looking into is the purchase of your own tanks. Aside from the obvious advantage of eliminating any lease fees, the bigger benefit is that you will then be able to shop around for the best propane prices available. It is well established that no propane company will deliver product into a tank owned by another company, thereby enabling the tank owning company to charge pretty much whatever they want; which is usually based upon the homeowners annual usage (i.e.; the more you use the lower the price). Yet when you can shop around because you own the tanks, the price is always substantially lower. Two days ago I paid $3.32 per gallon for 100 gallons versus the current "captive audience" rate of well over $4.00. Yes, the initial outlay for the cost of the tanks takes some time to recoup, but well worth the ability to simply hang up on the price gougers when they quote $5.99 per gallon as one company did to me last week. Different size tanks are readily available online as well as at the big box stores. Bear in mind some companies will require you to show proof of ownership before delivery.

There ya go! Excellent strategy, Ray, and a viable option.

2. David WIllmott said...

I have had good results with Great White Propane... local small business guy on the North Fork... although I own my in ground tank, so cannot attest to what is happening with above ground.

Thanks for the lead, but since you own your steel, not even Paraco would charge you for the tank... though they might impose an annual fee for the regulator.
– Dean

3. Joyce Donneson said...

Liberty Gas.

I was going to inquire there... I fill my wife's LPG (BBQ) "bottles" for the there on a regular basis.
– Dean

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