What's the deal with the cost of Propane?

Recently we received an email from a fellow Fuelstart community member upset about the fluctuating price of propane. Below is a portion of that email.

"I had a 325 gallon propane tank filled 2 days ago (1/6/2010) from my local propane dealer with a price of $2.6247 per gallon (140 gallons). I was quoted the day for the delivery at 2.53 per gallon ( increase of almost 10% in 1 day). My neighbor had his propane tank filled today and was charged $5.13 per gallon (200 gallons equals over $1000)from his local propane dealer. I think all of the states should pass a regulation to make all the fuel oil and propane delivery companies post their price per gallon on their website or on website such as yours or the state agency websites.

Also should show the price the dealer is paying for fuel from their source (end of pipeline, etc) and the transportation, and the tariffs, and retail price based on volume the consumer uses. I think that this is the only way to give the consumer reassurance that he is being treated fairly. I also thought maybe you could suggest other places I might be to send this request for action."

I agree with this user. That is why started we Fuelstart in the first place! We have contacted several propane dealers and they are reluctant to post their prices here or even there on own website. I guess one of the main reasons is that they have different prices based on the usage of the propane. Such as cooking or heating purposes. As far as recommendations go I would let your local propane dealer's know that you would like to see the price posted here or on their own companies website. The bottom line is they have the right to charge what ever they want for the products they sell. It's up to the consumer to make sure they are being tried fairly. Hopefully in time they will start posting prices as most heating oil companies have already adopted and embraced this practice.

Older blog post Why is Propane so Expensive?