June is an exciting and busy month for the energy division. It’s the month that we send out our safety mailings to thousands of our customers along with contracts giving most of our customers the opportunity to lock in their price of propane through May 2027.
Here are some frequently asked questions I’ve heard over the years.
Is it worth it? I rarely see a year where contracting your propane doesn’t pay off, including the heating season we just completed. On the rare occasion when propane prices drop, about the most I’ve seen people benefit is maybe 10 cents per gallon for a month or two. You can almost set your watch by when propane begins to increase in price as soon as farmers turn on their crop dryers.
What program should I pick? Make sure it’s one that fits your budget. If you need help making the decision, call your local Premier Energy location to get some good advice.
What happens if I overbook my gallons? If you don’t use the gallons by the end of the contract period, the money stays on your account and can be used the following year. All we ask is that you use a reasonable number, because we use that information and your deposit to purchase contracts from our suppliers.
I think you will be pleasantly surprised with this year’s propane contract prices. While diesel and gasoline continue to climb, propane prices haven’t moved much. Now comes the plug for propane powered vehicles. We’ve got several in our fleet, from pickup trucks to crane trucks. They start on gasoline, then switch over to propane. If you run out of propane as you’re traveling down the road, the system beeps at you three times, then switches to gasoline one cylinder at a time for a nice, smooth transition.
Both of my personal vehicles have propane systems on them. I’ve got a 2016 F150 with 261,000 miles. I put the system on after I had 37,000 miles on it, and I’ve saved over $18,700 in fuel costs. That will buy you a lot of bells and whistles. I took a trip out west and made it from my house near Ridgeway, WI to Sturgis, SD before I had to refuel, so it really extends your range. Once I got out west, I continued to run on gasoline if I couldn’t find a reasonable price for propane.
My other vehicle is a 2022 Dodge Challenger. (pictured above). This car requires an octane rating of 91, which is over $5 per gallon now. I’m running it on propane at a little over $2 per gallon, which includes road tax. I get about 80% of the mileage that I get with gasoline. (I could probably do better, but I can’t seem to keep my foot off of the pedal.) I had 5,500 miles on it when I added the propane option. So far, I’ve saved over $1,700.
Key Benefits of Propane Vehicles vs. Gasoline
Lower fuel costs
Cleaner emissions
Cleaner engine operation and lower maintenance costs
High octane and good performance
Safer and non-toxic fuel
Better cold weather performance
Energy security and domestic supply
Flexible fuel options (bi-fuel vehicles)
The Wisconsin Propane Education and Research Council currently offers an incentive of $3,000 per propane fueled vehicle purchased. There are over 900 school buses in Wisconsin running on propane and new additions are also eligible for the incentive. Call Shane or Adam at 608-702-2401 for more information.
Have a fantastic June and enjoy the weather. Don’t forget to fill out your propane contract and thank you for your business.
