Bulk LPG - Cheapest suppliers / supply route?

Lumphammer1

I have been waiting to see the April figure and a bit disappointed it has gone up so much. I was thinking of switching from the Lister ANSI tracker rate 39.83p. I don't think it is worth me switching at the moment, so I will look again in the autumn.

I do like Woldlink's transparency (which is why I am on a tracker) as it used to be a haggling competition between me and my LPG rep each time of filling previously.

Just wondered, is there any futures market for LPG or a product from which it is derived that could be used as a future price predictor in conjunction with the HateLPG's very useful graph. And, thank you again, HateLPG.

thozza

CME publish data on North West Europe bulk propane future pricing (in U.S. dollars and cents per metric ton):

http://www.cmegroup.com/trading/energy/petrochemicals/european-propane-cif-ara-argus-swap.html

Which can be converted to Sterling then divided by 1960 (the conversion factor for metric tonnes to litres of propane), currently this gives a March price of about 16ppl,

Bear in mind that there is a lot of variability in the futures price vs. the actual sport price, and companies such as Woldlink who are setting fixes for a number of months are buying at a hedged price, the spot price can, and does move lower (or higher) than the hedged price, but you do have the advantage of knowing exactly what price you wall be paying for the fixed period.

mcmullank

Woldlink price for April is 27.78 ppl. A healthy decrease from the Feb/Mar price.

155695

That seems to be at odds with Post 2869 above which quotes 36.95p. I'll have to give them a ring on Monday as I'm about to change to them.

mcmullank

155695 wrote: »

That seems to be at odds with Post 2869 above which quotes 36.95p. I'll have to give them a ring on Monday as I'm about to change to them.

These are two different tariffs. There is a monthly variable rate that is no longer sold but is applicable to people that signed up to it. My quote is the current price for April for this tariff only.

The price quoted in post 2869 is for the fixed rate tariff offered by Woldlink which is fixed twice a year (April and October). This is the tariff that is available for new customers and is fixed at 36.95 for April '17 and the following 6 months.

Hope this clears it up for you.

155695

Thanks for that. Certainly does - thought it was too good to be true!

collectors

Well done, this will be a great help to LPG users. :beer:

Essexuser

Interesting development in my search for cheaper gas.

When I started researching the market a couple of moths ago, I contacted a couple of potential gas sources, one of which was LPG Save. Anyway, I didn't hear back from them so assumed they weren't interested and contacted Woldlink.

Well this morning I received a letter from LPG Save and they provided a quote for 31.5ppl fixed for 12 months with a maximum 5ppl increase for the last 12 months, plus £150 free gas on changing over. What is interesting is that the quote comes from Flogas who would be the actual supplier. As most of you know, Woldlink use Flogas as their supplier and the price quoted is some 3.5ppl cheaper than Woldlink.

It appears that LPG Save is an "independant" broker run by a chap called Robert Flaxman. He admits that he receives a "small switch fee from your new supplier", which I suppose is fair enough - no one works for nothing.

So I'm now in a bit of a quandary, on the one hand I like Woldlink's transparent and honest approach but on the other I don't think I can ignore the savings offered. The next move will therefore be to give Woldlink a ring on Tuesday and see what they say.

Anyone any views on LPG Save?

Lumphammer1

Thanks Essexuser. After reading your message I also asked for a quote. He got back really quickly. 31p + VAT for 12 months. £150 free gas. £80 p.a underground tank. Year 2 'price security' 5p price cap, saying that any year 2 increase 'must be referenced by an increase in the underlying costs that your supplier incurs in providing you with LPG'....looking into the small print on the Flogas contract it includes an increase in underlying LPG as evidenced by Platts LPG price index for North West Europe taking into account exchange rate issues.....increase in transportation costs....or...any increase in cost to use of purchasing LPG (not withstanding the Platts stuff)..

So lots of get out clauses....but I can terminate contract if they break the Upper Annual Limit

Sounds pretty good to me.

155695

I've signed up with Flogas via LPG Save. Probably are some get out clauses but that is better than being exposed to a 13% increase the minute the fixed element of the contract expires without any warning or reason, as with Avanti.

Ran it past Woldlink before I signed up and they were genuinely very surprised at Flogas and I think words will be had. They said in the current climate it was too good an offer to miss.