Propane tank users getting less for the money
By Sandy Shore The Associated Press
Posted: 05/22/2009 03:49:21 PM PDT

Retired lawyer Stuart Barr, 65, picks up a tank of propane at a store in Denver, Colo., on Friday, May 22, 2009. He was not aware that the volume of the gas in the tanks had changed. "It's a price increase. I'm a great believer in full disclosure. Give me the information." (The Associated Press)

DENVER - Backyard grillers may get a little steamed this holiday weekend when buying refilled propane tanks: They will be getting less fuel for their money than last Memorial Day.

When oil prices soared in 2008, propane suppliers quietly reduced by two pounds the amount of gas pumped into each 20-pound tank, saying they wanted to avoid raising prices.

Since then, propane prices have been cut in half as the price of oil has dropped. But smaller refills are still being sold nationwide by many dealers, and most buyers are unaware because the tank is the same size.

"It's a price increase," retired lawyer Stuart Barr said Friday as he swapped a tank at a Home Depot store in Denver. "I'm a great believer in full disclosure. Give me the information."

The problem, consumers say, is that no one tells them they're getting less propane. Companies have adopted similar practices in the packaging of coffee, sugar and laundry detergent.

"I'm not surprised," said Tammi Dorsey of Denver. Carrying a tank of propane from a store Friday, initially unaware that she got less this time.

For the past year, tank exchanges at retail stores have generally cost $20 to $25. For a few bucks less, consumers can take their tanks to some stores to get them refilled instead of exchanging them. Those refills usually contain the full amount of fuel allowed by law.

Until last year, Blue Rhino and Amerigas, two major suppliers, put 17 to 18
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pounds of propane in each 20-pound tank. Tanks should not be filled completely for safety reasons.

About a year ago, that amount was cut to 15 pounds to save consumers a price hike, Blue Rhino spokesman Chris Hartley said.

"There are a number of companies in different industries across the country addressing product packaging, just because of the soaring costs," he said.

Last year, all energy costs increased sharply, as did the price of steel used in tanks. Crude prices soared past $100 per barrel at the start of 2008 and climbed toward $150 by July. Propane futures hit $1.95 per gallon in the same month.

Those prices have all fallen this year, which would suggest bigger profits for propane distributors.

Hartley would not say if there were plans to return propane refills to the same levels as before the 2008 price spikes, but he did say that energy markets remain volatile.

In the last year, propane futures on the New York Mercantile Exchange have dropped from about $1.73 per gallon to just above 71 cents. They have climbed 11 cents since January.

Retailers who offer propane say they have not increased the volume of fuel in each tank because propane companies have not reduced prices.

Home Depot, which offers propane tank exchanges, said cutting the amount of propane in 20-pound tanks was an industrywide measure.

There have been no customer complaints, spokeswoman Jean Niemi said.

But Jose Rivera of Denver did the math in his head and concluded that the extra money spent on propane could have helped pay for other cookout supplies.

"That's some steaks," he said.

wow, but it figures. i'll just go have mine filled.

Users that exchange tanks are paying for convenience. If not, they would be looking for a place that charges by the gallon and save money.

Until the cost of convenience vs gas received gets out of balance (and users refilling) the "exchange a tank" companies will continue to charge/fill a tank whatever they want.

most people have no clue what is going on and probably wonder why their tank goes empty so quickly.

I use to always have my tanks refilled but it is the convenience factor that drive me to doing a tank exchanges now. I can get one exchanged in less than 10 minutes including travel time! If I went to have my tank filled I would be out for 45 minutes to an hour plus the cost difference is less than 5 bucks.

I get my 20's filled at BJ's for $12.49 and it's just 2 miles from my house. BJ's has the best price in town for re-filling. Next best price is $16.99 a 20lb tank.

Up here in Ontario, Canada, the legal limit to fill is 80% of capacity or 16pds.
Costco is the cheapest place to get a fill at $9.99 CAD plus taxes....

Burt

Here in Australia we have a Swap and Go (Tank Exchange) and unless you go to the trouble of weighing the you don't know how much they have in them. I get mine refilled at Barbecues Galore and generally watch and talk to them whilst they are filling it. It costs me $AUD 27.50 and I get every 5th one free. Swap and go is between $AUD 27.50 and $AUD 32.00.

Regards

I just had 4 20lb tanks filled at uhaul for 36 bucks if you go past 10 gallons the price drops tanks hold about 4.25 gal

quote:

Originally posted by Burtess:
Up here in Ontario, Canada, the legal limit to fill is 80% of capacity or 16pds.
Costco is the cheapest place to get a fill at $9.99 CAD plus taxes....

Burt

Yep, I just had 2 tanks filled at the Costco on Brant street for 9.99 each. 2 tanks for less than the price of a single exchange.

They really need to send that out west. My last fill was $16 or so,

Man, I just paid $34 to have a tank and a half filled. I might as well have just exchanged them.

I was thinkin' about building an Ugly Drum Smoker (UDS) out of a used 55 gallon drum but when I went to get it, it was now 50 gallons!

after all this i noticed a few weeks ago that around here, all the exchange places have several signs stating that there is less in the tanks to keep the cost down. makes little sense to me cuz ya just got to go back sooner to get more.