G.A. Bove was incorrect in their written statement to propane customers when they stated that the Galway Co-op does not offer a pre-buy. Galway Co-op has always offered a pre-buy. We don’t push the pre-buy because time has proved it only benefits the Propane Distributors. Also, for those who don’t understand the wholesale history of propane (http://tonto.eia.doe.gov/oog/info/hopu/hopu.asp), there is nothing volatile about it. The only volatile variable in the propane industry is the propane distributors’ profit margin. But, for the sake of those who find comfort in a pre-buy, here is a simple comparison.
G.A. Bove pre-buy with customer owned tank = $1.599 per gallon. Good until 9/18/09 Co-op pre-buy with customer owned tank = $1.499 per gallon. Good until 9/20/09
G.A. Bove pre-buy with company owned tank = $1.899 per gallon. Good until 9/18/09 Co-op pre-buy with company owned tank = $1.799 per gallon. Good until 9/20/09
As with both companies there is a 400 gallon minimum.
Now you have the facts.
You be the judge.
Read contracts carefully.
See pg.2 of this document for their letter & more details.
