Propane Price Gouging In Shiawassee?
February 17th, 2008 | by christine |I hate it when bloggers blog about themselves, but this experience might help someone out there.
Ok. So I get my propane from McBrides / Northwest, and I just paid $3.59 a gallon.
This did not seem right to me, so a friend of mine called them to check on it. The current rate for propane is $2.59 if you own your own tank (I don’t) and $3.19 if you rent.
So I call McBride, and it takes them until the next day to have a manager call me back. No, he says, it’s $2.59/gallon if you own, but it’s never been $3.19, where the heck did you get that idea, and market price is $3.59 and that’s what you’re going to pay if you want heat and hot water. But if you get on the budget plan where you pay us every month, it’s about $2.59 a gallon.
I don’t want a monthly payment! I want to pay when I get the propane.
So, I guess I’m buying my propane tank. And I’m stuck with paying $3.59 this time.
And $1.00 per gallon to rent a tank? More than 1/4 of the payment goes to tank rental?
No wonder nobody can afford heat.
22 Responses to “Propane Price Gouging In Shiawassee?”
By chris b. on Feb 19, 2008 | Reply
I have just received the same rip off price of 3.59 a gal from my propane company,Progas Propane in Grand Haven ,Mi
After calling other local propane gas companies I discovered that Progas was overcharging by over a dollar or more in some cases, and apparently were well know as a “rip off” company.
Taking their advice I called to confront Progas and did receive a discount,but was still being ripped off. I will switch companies asap that will assure me that a doubling of my bill will not happen again.
This sort of price gouging should be reported to the attorney general.
By Tina on Feb 19, 2008 | Reply
Then there are those who rent. What happens when the landlord rents the tank and there is no control by the renter over where they get their propane? The unfortunate renters are forced to pay the higher rate and get stuck with the rental fee - then they can’t have the tank removed to rent from somewhere else, because they don’t own the property…..really stinks.
By Rick on Feb 26, 2008 | Reply
We had the same problem with McBride’s a couple years ago. That’s when we discovered that McBride’s were no longer locally owned, and we were now a number not a customer.
We now have a locally owned, for 100 years, company Lansing Ice and Fuel. Many of our neighbors switched to Lansing Ice and Fuel, as well. They have a program that costs $35 and locked us in at $1.69.
By christine on Feb 26, 2008 | Reply
Thanks Rick, I’ll definitely check them out.
By christine on Feb 26, 2008 | Reply
Chris, I am thinking about putting together a post that includes more info than just my experience. When I do I will post it over on bloggingformichigan.com and I will send a copy to the AG. It probably won’t matter, but at least the people in Lansing will see it.
By Patrick Apostol on Mar 5, 2008 | Reply
I called Amerigas last week for a fill 3.08 a gal. I called back to cancel and they lowered it 10%. The next day I called back again to change suppliers and they dropped to 2.26 a gal. What is it with these people???
By Corey on Mar 13, 2008 | Reply
FYI:
By LIZ SHEPARD Argus-Press Staff Writer
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Wednesday, March 12, 2008 10:04 AM EDT
Legal steps taken by Attorney General Mike Cox against Inergy Propane could affect what some area residents are paying to heat their homes, but the company is denying any wrongdoing.
Cox announced last week legal steps are being taken under Michigan’s Consumer Protection Act for excessive pricing of propane gas against Inergy Propane. McBride Oil and Propane of Owosso and Northwest Energy in Chesaning are listed on Inergy’s Web site as two of its retail locations.
The action is being taken after numerous complaints from consumers alleging Inergy charged high prices compared to average market price, reads a press release from Cox’s office.
According to Cox, some consumers reported rates as high as $4.39 per gallon of propane.
“Residential consumers of Inergy-supplied propane gas are having to spend more to heat their homes this winter because of these excessively high prices,” he said in a release. “If a consumer has a 500-gallon propane tank, and is being charged even $1 over the market price to fill the tank, the consumer is being overcharged by $500. That is unacceptable.”
Inergy Propane has 10 days to cease violations of the Consumer Protection Act, or be sued, according to Cox’s release. A Notice of Intended Action has been the first step taken against the propane company, said Michigan Attorney General spokesperson Matt Frendewey.
Frendewey said Inergy has contacted the attorney general’s office and requested a meeting, but wouldn’t release where they were in the process or what sort of outcomes could come from a meeting.
The legal steps are consumer-driven.
“Just like in any case, when we receive a consumer complaint we investigate it,” Frendewey said. “We investigated them and we (found)…that they are violating the Michigan’s Consumer Protection Act.”
A call to McBride Oil and Propane was forwarded to Inergy corporate headquarters in Kansas City.
“We strongly deny the allegations,” said Jim Cross, a senior executive of Inergy in a press release from the company. “The pricing practices at all of Inergy’s operations in Michigan are legal and consistent with local and industry standards as well as with historical pricing practices. Our pricing programs provide budget certainty to thousands of customers who rely on us for heating their homes.”
Cross added many customers are in pricing programs that either level prices or cap their price, and those who don’t participate in a program are “charged a fair rate based on the market price of propane at the time of their delivery.”
Many Inergy customers paid less than the average price of propane reported by the Michigan Public Service Commission, according to Inergy officials.
“Customers are clearly angry at the prices they pay at the pump as well as for propane,” said Inergy spokesperson Debbie Hagen.
She also said too many variables affect the price consumers see to release just how high the price reached for those not in programs.
Currently Inergy is working to resolve a lawsuit with a Gaylord Gas customer.
By KELLY on Mar 26, 2008 | Reply
PEOPLE>>> buy your tank tank if you can. Lock your propane price in the summer. This is the cheapest way to buy propane. I might also recommend a smaller not corporately owned company. Those compaines have stock holders to report to. Some large companies will buy smaller companies selling on that companys good name. Know who you are buying propane from and know who owns thems. Propane is Propane it is all the same and pulled out just a few places. Lock in spring, buy a tank. and remeber there is power in numbers if you can get several neighbors together you can negotiate a better price. Get several different companies and for God sakes get your price in writing. I worked in the business for years and left because of of things, that I considered not good business. Get your neighrbor togethers or just in the an area you will be amazed at the pricing you power you have when you are negotarting for a 20000 gallon account vs a 1000 gallon account. Believe me they will listen to you. Hope this helps
By Terry in Houston Texas on Apr 2, 2008 | Reply
I use propane to operate environmental remediation equipment. I probably spend about $40,000 a year at Amerigas alone, much less small suppliers outside Houston. In one delivery (we get three a week) there was 341.5 gallons put in the tank. The bill is $1753.88. We can’t get more money when fuel prices change and we can’t get Amerigas to negotiate.
By Chris Ertl on Apr 3, 2008 | Reply
We are having the same problems in Ohio. I have just had the exact same experience as you and have filed a complaint with the Ohio AG. Maybe we can get what seems to be a industry-wide practice stopped!
By Bruce on Apr 3, 2008 | Reply
Very interesting to hear about Inergy’s price gouging in MI - we are seeing the same thing here in OH. The customer tank returns are piling up in their yard while the prices go even higher. I look forward to the Ohio AG investigating.
By LINDA SUNKLE-PIERUCKI on Apr 7, 2008 | Reply
Apparently I’m getting the news late on this-my local paper never said a thing about it!
I’m currently disabled here in Jackson County with no income yet from Workers Comp and have sold everything that’s not nailed down to keep heat in my home this winter. My tank is owned by Pearl Gas, one of the Inergy companies who’ve been overcharging us all winter. Of the 600 gallons of propane I’ve had to buy since Novemeber,200 gallon at a time, the cost has gone up $.50/gal every time I ordered.
It looks like I was overcharged almost $500 this winter-and, under the terms of the AG settlement, I wont get anaything back as the top rate I paid was ‘only’ $3.29/gal (plus taxes, delivery charges etc).
I’m pleased Mike Cox went after this bunch, but sure wish he’d been a bit tougher on this passle of thieves! Paying a state fine of $25,000 doesnt sound steep enough to keep them from doing this again: forcing them to pay us back every cent of the overcharge from the standard rate of $2.49/gallon might have been more appropriate.
Looks to me like we’ll be seeing this again next winter-and in the spring, they can just plan on paying another $25,000 fine-a small price of doing business, they’ll figure. Their website reports earnings are up over 14.7% over last year-wonder why?
By Scott C on Apr 11, 2008 | Reply
Here in Southern California I am paying 2.99/gal as of today. December was $2.66…
By Jadalina on Apr 13, 2008 | Reply
I’m in the Texas panhandle, paying $2.35 a gallon and the company lets me use their tank free as long as I purchase the propane from them. The company was privately owned but recently bought out by West Texas Gas, but as far as I know, I have the same arrangement.
By Wildman on Apr 25, 2008 | Reply
Here in Mid Michigan Ferrelgas plays the same game. When buying propane its like buying a car anymore. I had a contract at $1.79 till March 08. But they try sent me a contract at a cap of 2.08 if i did nothing I am in that contract. I called around most everyone was at $1.59 to 1.79 I called them siad no to that contract. I called Ferrel a month or 2 later now they got a contract for the 1.79 what a game. I am looking to buy my own tank and as propane gets over $2.00 a gallon I been using elect heat, at a price north of $2.00 electic is cheaper. Am putting in electric hot water this summer.
By Steve on May 11, 2008 | Reply
We are in a rural area about 50 or 60 miles west of Sacramento, CA. We rent, and get propane from Suburban Propane. We have been here for three years, and have been paying over $3.00/gal. since we moved in. It goes up each time. Our last delivery, in late Feb. cost us $4.09/gal. I thought that was what everyone paid. Stupid me!! I talked to a friend yesterday who rents too. He gets propane from a different company, and pays only $2 something per gal. That’s when I got online and started checking things out.
One more thing. When we moved in, the propane had been left on, and everything was lit. When we called to put the service in our name, they sent a guy out who turned off our propane and pilot lights, turned it back on and re-lit the pilot lights, and they charged us $75 to do that. I was left scratching my head on that one. Since we can’t control the price of propane, or gas, we are moving back into town.
Bummer, but that’s the only way we will survive financially. I can’t imaging what they will charge next time.
By Robbie Steele on May 23, 2008 | Reply
I was wondering if anyone could help me i have pearl gas here in ohio and ive been paying $3.29 a gallon can anyone tell me what the going price should be and if i am getting ripped off
By Kerry Lipp on May 25, 2008 | Reply
has anyone considered a solar water heater? you will pay for one wether you get one or not. Payback is 4-6 years. 50-70% reduction in fuel costs. I just built my own system and it works great. I’m tired of paying 3.50+ for propane. we now heat totally with wood, have a clothesline, an indoor drying rack (amish dryer), a solar oven, a rocket stove, and am thinking about buying a pioneer maid wood cook stove. I’m looking forward to the day when I will call our propane supplier and tell them to come get thier tank.
By Brian on May 27, 2008 | Reply
Be aware of a few things about wood stoves and such. They have very uneven heating patterns in homes. So what happens is that the region where the wood stove is gets nice and warm and dry, but the peripheral areas of the home stay cool to cold. The result is that the moisture from the hot area condenses in the cold areas. This causes the growth of mold and fungus. That results in respiratory problems, damaged carpets, damaged wood, etcetera.
People have varying resistance to fungus and mold spores and particles. Some will get seriously sick. A few will never have a problem. Most will be in between, and have low level symptoms of lowered respiratory capacity. You may find yourself clearing out your lungs for a few hours every day when you go out. For seniors, lowered respiratory capacity is a heart attack trigger.
The first year, there won’t be a lot. But each year after, it will increase. Some homes that have switched over to wood will have puffs of dusty stuff come up from the carpets or grey-black growth on the walls and in corners. That’s mold and fungus.
If you heat with wood stoves, work hard on a few things. First, try to distribute the heat like it would be distributed from a central heating system. There’s a reason central heat caught on. Our ancestors knew all about what happens with wood stove heat. Second, minimize carpets and upholstered furniture and drapes outside of the room where the stove is. Third, Have varnished wood, vinyl and other easy to clean things in the other areas. Last, at least once a year clean the other rooms very thoroughly. Scrub them down with lysol and other fungicide-mold cleaners. And hit the ceilings and walls too. (If your carpet does the puffs of dust thing if you pat it in the corners, it may be too far gone. But you can try deep cleaning the carpet with fungicides each spring at least.)
By Bruce on May 27, 2008 | Reply
Robbie - Pearl has been purchased by a company called Inergy that is trying to test the market pricing level. As noted above, Inergy was recently taken to task for price gouging by the Michigan attorney general. Your only recourse is to pull out the yellow pages and take quotes from all suppliers in your area. Make sure to ask who their ownership is. A decent price in Ohio right now would be under 2.50 if you are filling a 500 gallon tank or larger.