Propane Peace of Mind in 2023
by Bob Hance on Thursday, May 4, 2023
When we promote our propane service, we often use the term “peace of mind.” This refers to two things:
First, we hedge our propane in advance, meaning we start securing propane about two years before it is needed, seeking out supply opportunities until we meet our goal. We determine supply based on seasonal historic temperature averages, expected customer purchases, and anticipated growth. Hedging enables us to lock in the best possible price and minimize our on-the-spot, or “spot gas,” purchases, which protects us from short-term market fluctuations. Most importantly, hedging ensures you pay the same per-gallon price for 12 months, eliminating the worry of winter price spikes.
Second, peace of mind refers to supply. By securing roughly 90% of our propane far in advance, we know we’ll have enough gas to fill tanks all season long. This is why we stopped taking on new customers for a brief period during the 2021–2022 heating season: to protect our existing customers.
May marks the beginning of our new propane season. Some of the volatility that rocked the propane market in recent years has settled, but prices aren’t what they used to be. That should not come as a surprise.
Our price for June 1, 2023–May 31, 2024, is $2.149/gal. for tanks 250 gallons and up. We’re not immune to market challenges, global events, and skyrocketing steel prices. No one is. However, we’re confident that our price will be a competitive one.
We are dedicated to our peace-of-mind promise. Our propane team will continue to work hard to secure our supplies early and for the best price possible. In fact, we’re already seeing a bit of a downturn in pricing for the 2024/2025 season.
You can even participate in a little hedging of your own with our prebuy program. Save $.10/gal. when you purchase gas in advance from May to July.
I want you to know something about MEC. Many of our employees have propane in their homes, so they understand the frustration of hidden fees, misleading first-fill prices, and supply problems. We don’t go there! We strive to be different—to go where others won’t. The price you pay in July is the price you pay in January, no matter what the market or Mother Nature throws our way. We want you to have the same propane experience we would have for ourselves.