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The Pros and Cons of Tank Ownership

Most propane customers in the U.S. lease their tank(s) from a supplier.  However, there are about 25-30% of propane users that own their tank.  For these customers, there are some pros and some cons that come with the tank ownership.  Today we’ll explore the benefits and drawbacks for those considering tank ownership and for existing tank owners.

Pros

The main reason people purchase their propane tank is so that they may not be tied to a single supplier.  Customers that own their tank are able to choose from multiple suppliers and can change as frequently as for each delivery.  This may allow them to get a lower price per gallon over the course of the year.  Most purchased tanks come from new construction where the tank is buried under the ground.  It is much more costly and difficult to bury a tank, so it’s easier to sell these customers the tank.  Most tank owners inherit the tank from the previous owner of the house, so it’s important to understand the responsibilities that come along with owning a propane tank.

Cons

For those considering purchasing a tank or have inherited a tank from the previous home owner, there are a number of things to consider.

  • It’s an Expensive Investment – For a 500-gallon tank, the purchase cost is in the $2,000 range.  There are also costs for purchasing the regulator(s), blocks or anode bag (if needed).  For those burying the tank, there are additional costs for excavation and concrete.
  • Maintenance Costs – Where a leased-tank is maintained by AmeriGas, customers that own their tank are responsible for the upkeep of the tank, regulator(s), valves and lines.  A faulty regulator could cost $300 to replace and all regulators should be replaced about every 12-15 years.  Safety must always be a high priority.

AmeriGas Serves Tank Owners

AmeriGas is a full service propane company.  It’s our goal to be the most Reliable, Safest and most Responsive propane company in the country.  We not only offer competitive pricing to tank owners, but can service their installations as needed.  Our technicians are expertly trained on propane safety and will check your system to ensure that it meets safety requirements.  For more information, contact your local AmeriGas office today.

About Andy Hertzog

Andrew has been working for AmeriGas since 2003. For the last five years, he has been a Product Manager, developing strategies and programs for residential and commercial segments.
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11 Comments

  1. Randi
    Posted May 12, 2015 at 9:08 pm | Permalink

    We’ve been with Amerigas for 25 years and the regulator has never been replaced. We don’t own the tank they do. Seems like if they say it should be replaced every 12-15 years it should have been done at least once.

  2. Douglas Best
    Posted June 2, 2015 at 8:42 pm | Permalink

    i had an AmeriGas tank and when the regulator on the tank failed I lost a tank of gas. I was told they were not responsible for anything except the tank and valve. I had to replace the gas at a higher price. I have just bought my on tank.

    • Lynn
      Posted September 21, 2015 at 11:55 am | Permalink

      I live in Colorado and it is cheaper for us to use electric space heaters than to use propane. propane cost is down this year so is have to refigure but last year I save 0ver $1000 by using space heaters.

  3. TONY LARON
    Posted July 27, 2015 at 9:03 am | Permalink

    buying older home 30.000 ft. all electric. if we went with propane what would we need, renting tank and install in the house (stove,water heater,dryer, etc. If we can’t install a gas line from the street (if possible} we need to go propane. tony laron

  4. Francis Bedics
    Posted December 7, 2015 at 10:23 am | Permalink

    I used to get my propane from Lehigh Valley Propane until they were bought out by Amerigas. They own the tanks and it is like getting gauged every year from them. Prices are the lowest in many years and they want to charge me $1.00 more per gallon this year. Once I use my propane in the tanks I am calling them to come get their tanks! I have been doing my homework. It is definetely worth getting your own tanks and being able to shop around.

  5. Lillie Coster
    Posted December 7, 2015 at 12:11 pm | Permalink

    I am a senior citizen buying from the customer for 25 yrs. never a late payment…just had my tank filled…..I own my tank…..I was charged 2.77 per gallon for propane….propane was selling for1.49…..At that time…..I feel I was really gouged for owning my own tank,how is think creditably……when living ESP. On a fixed income…..I called office o find out why and the answer was because you own your own tank…I will have to search for alternate prvidersn the future,but like all seniors I hate making changes.

    • Posted December 7, 2015 at 4:25 pm | Permalink

      Hi Lillie,

      We have located your account and forwarded your concern to local management. Please email us at fb@amerigas.com for additional information.

      Thank you,

  6. Larry
    Posted December 24, 2015 at 3:19 pm | Permalink

    I’m glad that AmeriGas is mature and smart enough to allow negative comments. At least I know you’re not “twisting” the data. Right now I’m trying to debate if I want to stay with electric (Ugh!) go with CNG (I think there’s an industrial line in front of the house we can tap into) or go with propane- so I’m kinda on the wall. I do know this- I hate cooking with electric. When I hit FLAME I want FLAME not this standing and waiting,,,, Thank You, Larry

  7. Garry
    Posted January 12, 2016 at 8:08 pm | Permalink

    I just left Amerigas due to poor customer service. The tank I had was installed in 1988 and never serviced since. Recently lost a portion due to leakage on a defective valve and they never offered to compensate. Reduced my monthly budget plan to a lower amount which would cover the tank rental but only fill the tank maybe 25%. It would have taken an additional couple hundred dollars to fill the tank again due to them adjusting the annual budgeted account.

  8. Arther J Washington
    Posted January 26, 2016 at 8:08 am | Permalink

    I purchased a home with a buried 100 gallon tank. I am not undee contract with company. Can I tell them to remove tank and fix the hole. They want 100 dollars a year rent and there propane price is higher than the company I have always used. My thought is its there tank I am not contracted with them and its my property

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