Quote:
Originally Posted by Merrymeeting
With propane, in order to compare prices you also need to provide info on usage. The more you use, the cheaper it is.
This has always seemed backwards to me, though I know it's standard economics. But it's one of the only areas in heating/insulation where you are penalized for conserving.
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The cost of operating a propane delivery truck has to be figured into the price for propane. That is not just the delivery cost but also the cost of the time it takes for the truck to be filled before it goes out on deliveries.
It cost the company the same amount to get to your house whether you take 50 gallons or 450 gallons. If the truck costs $50 to get to your 50 gallon delivery then it cost the company $1 per gallon just to get to your house. Using the same numbers, if your delivery is 450 gallons the delivery cost is only 9 cents per gallon.
Another obvious cost to the company is the extra time and effort to get to tanks when there is snow on the ground, in many cases covering the area where the tank is. I know some companies put a second person on the truck just to assist the driver getting through when there is a substantial amount of snow.