Believe it or not, some users of propane gas think that the government sets the price and that all dealers charge the same amount. Nothing can be further from the truth. Propane prices are set by each dealer. They can charge what ever they think their customers will pay. It is up to you to shop around and find the best deal for you.

Now there is nothing wrong with using the same dealer if they charge you a fair price and give you great service. But when was the last time you called around to other dealers to see what they are charging? I bet you will this year!

So how are propane prices set? Propane gas is a by product of natural gas processing and the refining of crude oil. The price of propane will tend to parallel crude oil and natural gas. If crude oil is going up, odds are propane gas prices will be heading higher too.

Other costs involved with propane are the dealer’s overhead expenses. Your propane dealer will have to take into account their overhead, which includes salaries and benefits. They must also figure their transportation costs too. If they have to travel a long way to receive their supply of propane, that will be reflected in the price you pay when you fill up. Also the distance the dealer has to go from his office to you home will also affect the price you pay. Another consideration is how much propane gas are you taking for a delivery? If you are only taking a small quantity, then you will be paying more per gallon than someone who takes a large delivery. This is something you should discuss with your propane supplier.

Now if you run into a situation where your current propane dealer or a perspective one won’t quote you a price, run away. An ethical dealer will be willing to tell you the price per gallon of propane you will be paying. When you are comparing prices, see if there are also any fees added on to the bill. This should be fully disclosed to you before you order gas from them. I have heard of some dealers adding a fuel surcharge to a delivery to make up for the high price of gasoline or diesel in their trucks. These are things that should be fully disclosed to you.

Some dealers offer plans where you can pre-buy you supply of propane. This will you require you to look at your bills from the past winter to see how much propane gas you used. With this information, you may be able to negotiate a better deal with your supplier. This will let them know how much propane gas they will need and may qualify you for a discount. This may help lower your propane cost.

Another idea is to band together with your neighbors who are also using propane to heat their homes. You can form a buying group. Think about it, if a neighborhood formed a group and went to dealers saying you are willing to buy several thousand gallons of propane this winter, don’t you think you would get the dealers attention and perhaps a great price? Even if you can’t from a group with your neighbors, you may be able to find a group in your city or county and become a member.

Better to own your propane tank or to lease one?

In some states you can buy a propane tank and have it installed yourself. When you own the propane tank, you can then have it filled by any propane dealer. However if you lease the tank, you may only be allowed to purchase propane from the owner of the tank. This of course limits your buying choices. Some states such are looking to change that law so the consumer will be able to buy propane gas from whom ever they want to.

How to find the average for propane prices in your state.

How much are propane prices today? During the heating season, which runs from October to the following March, the Energy Information Administration or EIA publishes the national and state average of propane prices. This can give you an indication of what propane pricing is in your area. Each Wednesday they will publish the current propane prices. Remember there are other factors that we mentioned earlier in this article that effect your price, but it will act as a guide as to what you should be paying. The EIA publishes the residential propane prices and wholesale prices for each state. You can visit their website here for more information.

So before filling up you propane tank this winter, be sure to shop around and compare propane prices to get the best deal available.

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You may read in the paper or hear on the news about the wild price swings in natural gas. Some may view it has highly risky while others see it as a tremendous opportunity to profit. Which type of investor are you?

There are several ways to trade natural gas. I find the easiest way is by using the Natural Gas ETF. Why? There are several types of Natural Gas ETFs to use depending on your outlook and risk tolerance.

If you want to trade natural gas futures, there is an ETF for that. Instead of opening a futures account and hoping to qualify for a futures account, you can easily trade the United States Natural Gas Fund. By buying a few shares of the fund, it allows you to mirror the price movements of the natural gas futures on the New York Mercantile Exchange.

You also have to ask yourself how do you trade? Do trade technicals or fundamentals or perhaps a little of both.

A technical trader is one who uses price charts. The technician or chartist tries to see patterns in past price movement to predict the future prices of natural gas. Some use short-term charts like a 5-minute chart or a 30-minute chart. Others may only use a daily chart to track prices. Still other like a longer term view and look at weekly and monthly charts. If you look at 5 or 30-minute charts, you are generally a day trader. You are trading hoping to scalp a few dollars here and there. This can be less risky since your positions are only for a few minutes. You don’t have to fear about a war starting overnight or a refinery fire effecting prices. These are usually quick swift trades.

Trading with a longer time frame can yield great returns (witness someone like Warren Buffet) but position trading takes a lot of patience to trade. You must be able to sit tight and not get faked out of your position. Be prepared to be in the trade for the long haul.

A fundamental trader is one who trades based on the underlying supply and demand of natural gas. This trader stays on top of the number of rigs being used to drill for natural gas. He will also have an eye out on the weather and follow the weekly natural gas storage report that the government put out each week. This trader isn’t really concerned about the ‘squiggly” line of a price chart. He determines his trading position on supply and demand.

Hopefully this article help you decide the kind of trader you want to be.

Possibly Related Posts:

• Are your propane prices too high? Learn how to find lower propane prices.
• Welcome to Natural Gas ETF
• Hello world!

Possibly Related Posts:

• Are your propane prices too high? Learn how to find lower propane prices.
• Natural Gas ETF…how to trade profitably
• Hello world!

Possibly Related Posts:

• Are your propane prices too high? Learn how to find lower propane prices.
• Natural Gas ETF…how to trade profitably
• Welcome to Natural Gas ETF