IMPORTANT UPDATE

June 4, 2008

Due to the current status of energy products, including propane, we have made changes in how the program works.  This update supersedes any other info on this site.

Propane Pricing

It's hot outside, and the price for propane should be dropping quickly, allowing our supplier to lock-in for the 2008-2009 membership year.  However, prices have not dropped, even though propane suppliers have an over abundance of propane.  For more info on how propane pricing works, click here.  Propane is a by-product of oil production, and is linked to the price of oil.  However, lack of demand in the summer normally forces prices lower.  Some claim the inflated pricing is due to higher than average exports.

On May 23, 2008, at a time when propane prices should have been dropping, propane reached it's highest ever price of $1.735 per gallon at Mont Belvieu, a major propane producer in Texas.  5 days later, it had dropped to $1.7125 -- about 2 cents.  Of course, transportation costs must be added to that price to get it to HILCO Propane.  Now you can see just how much of a bargain our $1.50/gallon price was.

Predicting the Future

There are two trains of thought for predicting the future:

(1)  Propane has always been tied to oil (except for the summer drop), so it's going to remain high and possibly get higher.  We should lock-in now.  The problem, of course, is if propane drops, we're stuck at the higher price.

(2)  Propane is a by-product of oil production, and since they have excesses, they have no choice but to lower the price, especially with summer coming.  The "down side" is that prices could rise.

HILCO Propane is predicting Option Two.

Our Status Today

Our lock expired on 5/31/08.  Most of us should be fine until 9/1, when our new year normally starts.  HILCO Propane will be constantly evaluating the pricing to see if/when it's appropriate to lock-in for 2008-2009.

The Current Plan

• HILCO Propane has agreed to sell to us on a "Cost Plus" basis.  That price is guaranteed to be at least 50 cents cheaper than their retail price, meaning you'll save a minimum of $50 on each 100 gallons purchased.  As of 6/2/08, their retail was $2.67, our price was $2.08 ... a savings of 59 cents per gallon!  That price may fluctuate daily.
   

• New members who enrolled for 9/1/2008 may purchase at the "Cost Plus" price immediately.  You no longer have to wait until September.
   

• Our new "club year" will run from September 1st through the middle of August ... we will only have 2 weeks of the year where we do not have a special price, instead of 3 months.
   

• When / if HILCO Propane feels the price has reached a low -- and it may be AFTER September -- they will lock-in the new rate.
   

• The "keep-full" restriction of our program will be strictly enforced.  You should always check your tank, and call when it gets low.  However, HILCO Propane always has the option to top off your tank -- that means more efficiency for them, and savings for us.  Anyone refusing a top-off will be dropped from the club, with no refund of membership fees.

As a reminder, if you are pre-enrolling for 2008/2009, and do not like the price we negotiate, you may cancel your membership within 15 days of price notification (and prior to buying propane) and your membership fee will be refunded.

Renewal / join deadline:  08/31/2008

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