The Cost of Propane and Propane Tank Exchanges

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b3nt

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Wow! I have been naive! Here's what I've learned. We are a gullible lot! Don't read everything every propane dealer/website tells you!

First, understand the OPD or Overfill Protection Device they've put in small propane tanks. Propane dealers really can't fill the tanks all the way. But they can make up stories about them. I have not filled these tanks myself, so I can't tell you exactly how full they can actually get them. Having fueled propane cars, and having a little concept of physics, I do know how. But the propane dealers won't/can't legally trust me to even be near them. I suppose there's a chance a propane dealer could scam you if they wanted to. But in my limited experience the dealers I've had fill mine by the gallon have given me more than they charged for. Unless they're basing their prices on tank exchange prices. In that case they're just plain robbing me! More on that later. It does make sense they would take an arbitrary number that's a bit more than safe and stick with it. That seems to be 75 or 80% full. As I have time I'll see if I can work it out and give some real stats, at least for my new Manchester 30lb tanks. I suspect its more like 90% since they used to fill to 85% before they got greedy.

One web site I read says, "When filling a propane bottle equipped with an OPD valve, the flow of gas stops immediately when the overfill protection mechanism closes. This is extremely hard on a propane dispensing pump resulting in more repairs and pump overhauls which can be quite expensive. The propane industry spends more money than they save as a result of the OPD valve requirement." I believe a 'propane dispensing pump' is a bit like 'blinker fluid'. It's simple boiling liquid vs. low pressure that transfers the propane from a liquid tank (high pressure) to an empty (low pressure) tank. Maybe bleed a little pressure off in the form of vapor (propane boils at -43.6?F) to allow more liquid in. It's not rocket science unless you ignite it...

I've seen on the all knowing interwebs that you can mess with these things, but I'm going to say 'don't do it'. Some safety devices are smarter than others. OPDs on propane tanks? Um... yeah. LP gas is nasty serious stuff when it gets loose. Let's be serious about it. Learn how the OPD works and how it might mess you up if you get too full, and how to fix it safely if you do. Or leave it alone and take it back to who filled it and you'll be fine! I ran into it with a brand new tank's first fill. So yeah, it's maybe good to know how to fix it. Seek OPD info on the interwebs and you shall receive.

Something you should also be aware of is they can only refill tanks up to 12 years old, then they have to be recycled or tested and reconditioned, and that gives them another 5 years. With that they can be re-dated and they'll have an 'E' added to the date to indicate the extension. Apparently you might find some with 'EE' which means they've been recertified twice and they could be something more than 22 years old. So if you're buying a tank, check the date!

I've been burning Blue Rhino and other brands of propane tank exchanges like crazy. Come to realize, I'm paying about 3 times what I should be. And When a tank only lasts a few days, it's a PITA to change them out so often.

So Blue Rhino labels their tanks 'Net 15 lbs'. At 4.2 lbs per gallon, that's 3.57 gallons. For around $21.00 each. That's $5.88 a gallon. It's also 75% full.

Tractor Supply Company, about 25 miles away, has propane for $2.09/gallon! They also fill them to 80%. I got a new 30lb tank from them and had them fill a 20lb tank as well. The 30lb tank had trouble pushing pressure at first. I did ask them to fill them as full as they could. I think bleeding the air from the 30 pounder the first time put it over the edge into trouble with the OPD.

Now I get propane is a market. It's price can be as volatile as the fuel. The hardware or tractor store you buy from might have locked in a rate by signing a contract for a period of months. It's a risky business for them. If they get burned by prices that sucks for them. They deserve a little reward if they're smart and they catch a nice windfall, so I'll give them my patience if they treat me honestly. I also get that each time they attach a tank they're doing work and wearing on their equipment. If they want to charge a reasonable per-tank fee I'm cool with that if they're up-front. All that's in an ideal world of good people dealing with good people. Right.

The reality, I think, is they almost all base their prices on that ridiculous tank exchange price of over $5.50 a gallon. They're making a killing if they sell much of it. Try phoning a hardware store that sells propane and challenge them with the numbers. You'll get an impatient, 'no, we don't price match on propane', especially if you're in a metro area. They don't care.

So how to get the best deal? Have an RV with a tank over 60 gallons or something. (That'd be 250 lbs. or 17 20lb-but-really-15lb exchange tanks or so.) Yeah, no.

But you'll likely have a little better luck with 30 or 40 lb tanks if you can. Get out of the exchange tank rat race. You can get even bigger, but that might be getting to the point of too-heavy-to-handle. Seek prices outside metro areas. I drove about 50 miles round trip to get 9 gallons. (I think he gave me more like 9 1/2 and said 9.) Assume my gas-eating machine gets 16mpg combined city/highway ($8.90 for gas) I saved over $34 in gas in chase for that $2.09/gal price. Hell, assume the federal tax rate of 57.5? a mile ($28.75) I saved $24.17. I'm going to buy a second 30lb tank and take 3 of my 4 20lb tanks to fill in the future (leaving one to run things). That'll make that price mighty worth the trip.

Meanwhile, I'll be calling around pestering other suppliers in the area to see if I can find one that's reasonable. The more of us that do that, the more likely it is they'll stop using the tank exchange prices as their reference price. I'll also be looking for places like farmer coops and coop fuel stations, farm supply, and small-town hardware stores that carry propane that I think are going to be more likely to treat their customers right.

So I found Tractor Supply Company. Post any others you find that charge less than $18 for 15lbs of propane!

Oh, yeah. One last bit. Why do they sell 20 foot + campers with ONE 20lb propane tank? Because they can, I suppose.
 
With BLUE RHINO you are paying for convenience. The dealer will take an out of date tank in trade for a full one. The money for the out of date tank has to be made up somehow.
A 20 pound tank CAN hold 20 pounds when filled. The tank is capable of holding more than 20 pounds but the OPD shuts off at 80% full which is about 20 pounds
 
Best price we found last year was 99cents per gallon! Thank you Bretz RV in Missoula.
 
Blue Rhino and some other cylinder exchangers cut the fill amount a number of years ago rather than raise the price. They did initially get in some legal trouble for not properly labeling the cylinders. That's in line with what many food producers have done for years. Anyone seen a true 1 lb can of coffee lately?

Anytime you buy a new LP cylinder, it should be purged by the filling dealer unless it says "pre-purged" or similar on the label. Purging removes most of the air allowing for a full 80% liquid fill and less chance of an "air bubble" causing a flame out.
 
OPD or not, legally "full" on a 20 lb tank is 20 lbs of fuel.  That happens to be 80% full by liquid volume, but it's still 100% full of propane (the max propane capacity is 80% of the max water capacity).  The OPD device prevents anyone from filling the tank to more than 80% of its liquid volume, but no reputable tank filler would have exceeded that anyway. For safety reasons.

Buying pre-bottled propane instead of refilling your own is a convenience that you pay handsomely for.  Same with bottled water - even a 5 gallon water bottle is over $1.50/gallon and 16 oz water in bottles is more like $10/gallon, but you can refill your own for $0.25/gal or less. Most people simply won't bother.
 
New tanks being filed for the first time MUST be purged of the inert gas from the manufacture (new tanks usually have a sticker on the valve knob). Federal regulations are involved in how this is to be accomplished.

The venting of a tank being filled maybe used to indicate a full tank when liquid flows from the vent. Most fill stations also have a weight scale that should be used to confirm 80% not just rely on the OPD.

Not all employees have completed classes or understand the correct method to fill tanks. If anyone is really interested, the feds offer free online LP classes.

Cheers
 
Gary RV_Wizard said:
Buying pre-bottled propane instead of refilling your own is a convenience that you pay handsomely for.  Same with bottled water - even a 5 gallon water bottle is over $1.50/gallon and 16 oz water in bottles is more like $10/gallon, but you can refill your own for $0.25/gal or less. Most people simply won't bother.

You can say that again, in fact you just did. a 5 Gallon (20 pound) bottle may only have 3.5 gallons in it at like 3.00 gallon (10.50 worth of propane) but the bill is 19.95 or more at the exchange rack.

I refill.
 
I have a "wet line" on my 500 gallon tank at my house, so I fill all my own tanks myself. I really can't remember the last time had to pay to fill a small tank.
 
Our local hardware has exchange tanks as well as refill service.  The exchange is about $20 for 15# of propane. They will fill my 30# tank for the same price.  They fill by weight, based on the tare wt stamped into the tank handle.  They will NOT fill out of date tanks.  However, last spring, I brought in an out of date 20# tank for refill.  They would not refill, but they did do an exchange AND sorted through the tanks for a newer mfg date!

My 30# tanks expired a year ago.  The local LP dealer recertified for free as part of the refill.  It is a simple visual inspection for most tanks.
 
Old_Crow said:
Right now in Arkansas I'm paying $21 for a 30# refill, so $3/gal.

Is that to fill your tank, or tank exchange? I'd have no problem with that. If the kiosks charged $3 a gallon at present market rates they'd be making out fine, and I wouldn't be slamming them for their ridiculous prices. That might even be fair market price. It could well be the $2.09 Tractor Supply price is based on locking in a price on a big contract. Good on TSC passing on that kind of savings.
 
Gary RV_Wizard said:
Buying pre-bottled propane instead of refilling your own is a convenience that you pay handsomely for.


Yup. It's no different than paying a dollar more to buy a gallon of milk at 7-11. Convenience always costs more.
 
malexander said:
I have a "wet line" on my 500 gallon tank at my house, so I fill all my own tanks myself. I really can't remember the last time had to pay to fill a small tank.

... And what do you pay per gallon to fill your bulk tank? I believe most people do pay a lease on their tanks, but even with that, I'm sure people aren't paying $5.88/Gal to heat their houses and hot water! And they're delivering the propane right to your tank. You don't even have to deal with driving after kiosk propane or driving to them to get refilled. That truck costs a lot of money, and no doubt their price covers that and gives them a bit of profit, too.
 
I?m paying $5.19 a gal for delivered propane. We just use it for a gas fireplace. A propane dealer used to have a deal on certain days for a 20# tank for $10. But I haven?t seen that advertised lately.
 
Oldgator73 said:
I?m paying $5.19 a gal for delivered propane. We just use it for a gas fireplace. A propane dealer used to have a deal on certain days for a 20# tank for $10. But I haven?t seen that advertised lately.

Wow! We buy propane for the 320 gallon bulk tank at our NY cottage through a fuel buying co-op. Our most recent delivery was $1.72 a gallon.They also fill our 29 gallon motorhome tank if we're there when they fill the bulk tank.
 
Oldgator73 said:
I?m paying $5.19 a gal for delivered propane.


That sure seems high. I don't think I've ever paid much over $3 even when prices were high in the winter. If you're just using it for a fireplace are you using a 100# tank? Could be a surcharge for smaller quantities.
 
When a propane distributor "fills" your 20 or 30 pound tank they actually have to pump the liquid from point A to point B.  Without the pump you would simply carry off a tank full of gas not a liquid.  So yes the pump is necessary but no the OPD won't hurt it.  The pumps have a bypass circuit just like your fuel pump on your car.

Regarding not being able to get gas flow due to an overfilled tank, probably not.  The OPD has blowout protection on it meaning if there is too high of a flow of gas it will close immediately and terminate the flow of gas.  What happens when you turn on a propane tank which is feeding an unpressurized line it can trip that blowout protection.  This can happen when the propane has been turned off for a prolonged period of time  or you ran yourself out of propane inadvertently and the fridge, stove or water heater has emptied the line.  To mitigate this first off try not to run dry on propane, secondly open the valve "slowly" when you are loading an unpressurized line.  As an experiment you can crank that OPD open fast and you should hear the "click" as the blowout valve closes.  If you should ever be unable to get a gas flow due to the blowout valve closing simply leave the tank valve open and walk away for 30 minutes or so.  Once the pressure equalizes on both sides the blowout valve will open again and you're back in business.
 
My local hardware store charges $2.79/gal to refill propane tanks. Local bulk delivery services are about the same, but they won't come merely to fill a 20# or 30# tank.
 
b3nt said:
Is that to fill your tank, or tank exchange? I'd have no problem with that. If the kiosks charged $3 a gallon at present market rates they'd be making out fine, and I wouldn't be slamming them for their ridiculous prices. That might even be fair market price. It could well be the $2.09 Tractor Supply price is based on locking in a price on a big contract. Good on TSC passing on that kind of savings.

That's for an indicated 7 gal in a 30#tank refill.  I learned about getting shorted in the tank exchange a long time ago, and I've actually never seen an exchange for the 30# bottles anywhere.
 
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