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Pre-buy with LG Jordan: Saving you money before the Fall/Winter seasons

save moneyWhat affects the price of my propane?

It’s probably the question we get asked more than any other here LG Jordan: “How much will my propane cost this year?”

The truth is, propane prices are the product of a complex process: because propane is a commodity that is refined from other commodities and traded on a worldwide scale, propane prices can vary greatly from year to year – or even month to month – due to ever-changing economic, political, climate, and other conditions.

Demand – A key driver of propane prices
One of the main factors influencing the price of propane is demand – a big reason why propane prices typically rise as winter approaches and worsens. If temperatures in North Carolina and the rest of the Eastern U.S. are extremely cold, demand for propane goes up – even if the rest of the country is experiencing relatively warm weather.

Of course demand and market factors alone can’t account for the price you pay for propane. Dealers like us also have costs that we have to cover operate our business –mostly the result of requirements imposed on us by local, state, and federal government. Some of these costs include paying for insurance, safety and compliance training, municipal fees, employee background checks, and more (for a longer list, check out Propane101.com).

Smarter payment options can help
One way to reduce the potential cost of your propane is to order your fuel in the offseason, when demand is lower. This is why we offer a Propane Pre-buy option for customers who use more than 400 gallons per year and are enrolled in our automatic delivery program (this option is also available for our heating oil customers).

When you choose our Pre-buy Program, you lock in your propane gas price for the season: since we purchase these gallons for you up front, we require that you pay for your fuel in advance. If you need more propane than expected, you’ll pay market rate for your remaining gallons; if you end up not using less propane than expected, you can roll the credit balance forward.

Sign up for Propane Pre-buy from LG Jordan and keep your propane prices as low as possible in the 2019/20 heating season. Contact us today to learn more!