Natural gas/Propane users

 

USA now swimming in natural gas.  This story appeared in the Wall Street journal April 30th.  

 

Question:  I live in Maryland and use propane for hot water and as backup for heat.  Two months ago my tank was filled, cost was $3.29 a gallon.  The gas company is now offereing a Price Fix Program where you can buy as many gallons as you want and pay now $2.29 a gallon or lock in as many gallons as you want at $2.49 a gallon and pay when delivered, good thru May 2010.  Should I lock in the price now or not?

 

Thanks.

I'd go with the market rate since there seems to be a hugh supply of natural gas right now based on your post.

 

Locking in your rate might seem like a great deal at the time, but more often than not you'll lose out or barely break even in the long run.

 

I'd suggest sticking with the variable rate unless you can lock in way below the average market rate over the last 8 years