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Many Minnesotans--especially those in rural Minne­sota--rely on propane gas to heat their homes and cook their food. Consumers may be surprised to learn, however, that the delivery and pricing of propane gas is not regulated like other utilities in the State. With Minnesota’s cold weather season fast approach­ing and consumers facing one of the tightest econo­mies since the Great Depression, many are struggling to balance their bills and pay for basic costs like home heating fuel. Attorney General Lori Swanson provides the following tips to Minnesotans when buy­ing propane gas.

What is the Price Per Gallon? Propane gas com­panies typically charge customers a per gallon price for propane. Although propane gas companies prom­ise low prices in their advertisements to attract cus­tomers, consumers should not take the company’s word for it. Instead, consumers should demand spe­cific information about the per gallon cost (and other fees), in writing from the company. Some Minneso­tans have reported that their propane gas provider did not fully disclose the price per gallon to them. Some Minnesotans have also reported that their pro­pane gas provider charged them more than double the statewide average, despite promising them low rates. Consumers should shop around for the best price and closely monitor the price they are charged. Remember, the provider may be more likely to give you a better price if they know that you are consider­ing switching to another provider due to cost. Con­sumers may research statewide rates for propane gas by contacting the Minnesota Department of Com­merce. Between the months of October and March, the Department prepares weekly reports that include the statewide “average” price per gallon. Consum­ers may contact the Department as follows:

Minnesota Department of Commerce
85 East Seventh Place, Suite 500
Saint Paul, MN 55101
(651) 282-5064
1-800-657-3602
www.commerce.state.mn.us

Beware of Hidden Fees & “Fine Print”Contracts. Some unscrupulous companies may attempt to trick customers by hiding fees in lengthy “fine print” contracts. Some Minnesotans report that they have been charged hundreds of dollars for fees that were never disclosed to them on top of the price of the fuel itself. Consumers indicate they have even been charged fees for not using enough fuel in a given time period. Furthermore, some consumers who are unable to afford to purchase their own propane tank and must rent one from a company have been charged tank rental fees that were not fully disclosed to them , as well as fuel removal fees and tank pick-up fees if they wanted to change providers. Consumers on a fixed income who rent a tank may find it especially difficult to shop around and change providers due to these prohibitive fees, and Minnesota law does not allow another provider to fill the tank of another company. Consumers should be very careful to demand a copy of, and thoroughly review, any written contract from the company to make sure they understand the terms and conditions of the contract, and to make sure that the company is not trying to hide hefty fees in the “fine print.” For more information, contact the Attorney General’s Office:

 

Office of Minnesota Attorney General Lori Swanson
1400 Bremer Tower
445 Minnesota Street
St. Paul, MN 55101
(651) 296-3353
1-800-657-3787
TTY: (651) 297-7206
TTY: 1-800-366-4812

Propane Gas Costs (PDF)

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