40 March 2015 Landscape and Irrigation www.landscapeirrigation.com
Fueling Your Fleet
Even as the calendar was turning from 2014 to 2015, domestic
oil prices were still falling. As recently as mid-January, oil prices
dipped below $45 a barrel, the lowest price since 2009. Commer-
cial landscape contractors who had been contemplating a switch
to alternative fuels to power their mower fleets may be putting
those plans on hold as the price of oil, which seemed so painfully
high a year ago, remains unusually low.
Contractors may be surprised, however, to learn that when
operating on propane they can also take advantage of the oil
price decline while still reaping the benefits of a clean-burning,
American-made alternative fuel.
ProPane PrIces faLLIng, too
The dropping price of oil was a well-reported news item for much
of the fall of 2014. What isn't often mentioned, however, is that
decline in price is also happening with the price of propane. That
is because propane comes from two sources — refining crude oil
and refining natural gas — which keeps the price somewhere be-
tween the two commodities.
Because propane prices naturally go down when crude oil goes
down, some propane retailers will even take it a step further and
offer their customers contracts that guarantee their propane rates
remain a certain amount below the current local price of gasoline.
Many contractors using propane-powered mowers work with
their local propane retailer to negotiate an annual fuel contract.
A contract allows landscapers to lock in a set price per gallon, en-
suring they'll pay a consistent price for propane year-round. The
arrangement insulates contractors from fluctuations in fuel price,
and the fuel savings can lead to a quicker return on investment.
Because of the high demand for propane space heating dur-
ing the winter months, the cost of propane will typically fluc-
tuate seasonally in price as well. Savvy contractors can use that
knowledge to lock in a year-long fuel rate when propane is at its
lowest. In addition, even landscapers who choose not to lock in
■ by JeremY Wishart
The Case for Propane
as Oil Prices Fall
Photos
Provided
by
the
ProPane
education
&
research
council
