Month: April 2022

How a Monthly Payment Plan Works

Irish Propane prides ourselves on offering our customers fair and honest propane gas prices day after day. If your household depends on propane, then you take notice when the price of propane goes up. We are in a unique season right now. There is currently a great deal of anxiety surrounding heating costs. We know all too well that recent price increases for propane (not to mention all the other necessities that keep your household up and running) may be hard for you to manage. Regardless of your financial situation, you’re a valued customer and we want to help in any way that we can.

One of the ways we try to accommodate the financial limits of our customers is by offering our Budget Payment Plan. When you sign up for this plan, you’ll be able to predict your monthly propane charges because we’ll spread your total fuel bill for the year over 12 even payments. That way, you won’t get hit with three or four giant bills during high usage months. Instead, you’ll know exactly what your monthly bill will be because it will be the same each month.

Perhaps best of all, you don’t pay any more to be a part of this program. Enrollment in this plan costs you absolutely nothing.

Properties of our Budget Payment Plan

There are several advantages to signing up for Irish Propane’s Budget Payment Plan. Here are some of its features:

1. You won’t use more fuel than you normally would. Even during those months that you need more than one delivery, your monthly bill will be the same.
2. We’ll only charge you for the fuel you receive, and you’ll pay the market price on the day of your delivery.
3. Participating in our Budget Payment Plan will make your bills more predictable and manageable at a time when propane prices are fluctuating like crazy.
4. You’ll have more cash on hand during high propane usage months.
5. If your balance grows, you’ll still never pay any finance charges.

The Math

How do we calculate the amount of your monthly payments? We simply take your estimated annual fuel usage (which we calculate by looking at your previous bills) and multiply it by this year’s projected price. Then we split that total into 12 payments. If needed, we’ll make an adjustment. The result is that instead of paying as much as $500 or $600 per delivery some months, you’ll pay half that amount or less every month.

You don’t need to worry that you’ll end up paying too much (or little) for your propane. If your actual bills are a little higher or lower than we estimated, we will make any needed adjustments.

Signing up for our Budget Payment Plan is an effective way to make a tough situation a little bit easier.

We’re on Your Side

Irish Propane wants to give you the most competitive price we can while providing you with the dependable service and quality you’ve come to rely on us for.

We value all of our customers, especially those that have remained loyal for many years, and it is frustrating to have to charge you so much for your propane. Unfortunately, we are limited by the prices our suppliers charge us. But rest assured that we are doing our best to help you navigate through these difficult times.

We greatly appreciate your understanding and remain committed to taking the best care of your family, no matter what happens with the price of propane in the future.

A company you can count on

Irish Propane is a fourth-generation, family-owned, and certified women’s business enterprise that serves homes and businesses in central and western New York. Irish Propane provides our customers with fair and honest pricing, innovative solutions, convenient payment plans, and exceptional safety standards. We are there for our customers whenever and wherever they need us.

If you’re in or around the Rochester or Buffalo areas of New York, you can count on Irish Propane. Contact us today to learn more about our payment plans.

Understanding the Propane Gas Markets and Price Fluctuations

These days it seems like the cost of everything is going up. You’ve probably already noticed how much more you’re paying at the gas pump and at the grocery store. Propane prices have also risen. And while that is frustrating and downright painful at times, try to take comfort in the fact that propane remains one of the most cost-effective ways to heat your home and fuel your appliances. And propane does all this while also reducing carbon emissions.

Plus, historically speaking, what goes up must come down. It’s just a matter of when. And while the sooner the better, rest assured that today’s higher propane prices won’t last forever.

Propane prices change less dramatically than oil prices.

You may have noticed price swing trends with propane tend to be more moderate compared to heating oil, gasoline and other fuels derived from a barrel of crude oil.

This is because propane is a completely domestic form of energy. The U.S. actually exports propane to other countries. The abundance of the domestic North American supply means it is a secure and readily available resource. It also helps moderate the pricing in the U.S. 

Crude oil, on the other hand, while also produced in the U.S., is still also an imported product. That makes it more susceptible to geopolitical events. 

Supply and demand

The combination of high demand and lower-than-average inventory is always a common driver for higher propane prices. While you may just think of propane demand for home heating and appliance use, it goes well beyond that.

As an example, global demand for propane has risen because of its increased use as a petrochemical feedstock, the vast majority of which are derived from crude oil and natural gas. These petrochemicals serve as the basis of many end products, including plastic, paper, adhesives and detergents. Petrochemical manufacturers are the largest consumers of propane.

Global demand for U.S. propane has remained steady despite higher U.S. prices because international prices for propane and other feedstocks have also increased, according to the Energy Information Administration.

Other key factors

Here are a few more of the multiple factors that can affect the price you ultimately pay for your propane:

• Global conflicts and natural disasters: war, political strife, conflict, or natural disasters such as tsunamis, earthquakes, or hurricanes. Even the hint of a possible disruption in energy supply will heavily influence the buying and selling done by commodities traders. For example, when Russia invaded, the U.S. placed a ban on Russian imported oil and petroleum products. Especially with other countries expected to follow, that meant there would be a big energy void to fill.
• Propane exports: The U.S. is a large exporter of propane, and that export business continues to grow. This is good business for the large wholesale propane suppliers, but it increases demand even further in an industry that traditionally doesn’t store huge quantities of propane at once. Many propane suppliers are obligated to provide the quantity of propane they’ve committed to export, leaving even less inventory for domestic consumption.
• Weather Extremes: If there’s a low supply during a time of high demand, such as the colder months, an even scarcer market develops. If the cold snap is especially extreme or lasts longer than usual, that scarcity gets further compounded. People may start to panic buy (not unlike when folks were hoarding toilet paper during the beginning of the pandemic).

There are also some long-time factors that have always influenced prices such as the proximity of the supply, transportation bottlenecks, energy policy, and manufacturing trends. More recently, these issues have also come into play:

• The actual cost of delivering fuel has risen.
• New expenses have arisen du to Covid-19-related workforce issues.
• Supply chain problems have caused shortages, resulted in shipment delays, and inflated prices for supplies, parts, tanks and other materials.

What’s going to happen next?

We wish we had a crystal ball, but we at Irish Propane can only wait and see just like you. These price changes aren’t good for us either. Some people think that when prices rise, we make more money. The opposite is true. That’s because people cut back on their usage in response to price increases. Some also have trouble paying their bills. Meanwhile, we must still pay our suppliers promptly.

Irish Propane is here for you.

Even with all the uncertainty in the propane market, you can count on us to never let you run out. And if you start having trouble paying your bill, please let us know so we can do our best to work something out with you. You may also want to consider signing up for our budget payment plan.  

Irish Propane is a fourth-generation, family-owned, certified women’s enterprise serving both residential and commercial customers in western and central New York.

Contact Irish Propane today to learn more.