Understanding Your Propane Bill:
Fees, Taxes & Pricing
Learn about the factors that influence your propane costs, including federal and provincial fees and taxes, delivery and tank rental costs and how Superior Propane's price plans maximise your propane cost.
If you monitor your propane bill, you may have noticed that the propane price per litre fluctuates during the year. What you end up paying to get your tank filled will vary based on the commodity price of propane, which is influenced mainly by supply and demand factors. In addition to the product price, there are fees and taxes that also impact the total propane cost for consumers.
Let's break down propane prices and fees, such as propane federal and provincial taxes, delivery fees and tank rentals. We’ll also review ways to curb some of these costs by getting on the best pricing plan for your energy needs.
Factors Affecting Propane Prices
Canada is one of the largest propane producers in the world, and domestic production fulfils a fair amount of the propane consumed in Canada. Like other commodities, propane prices are influenced by several different factors. Inventory and weather are just a few of the factors at play when it comes to the supply and demand for propane, which in turn determines the fluctuating market price.
Learn more about how propane is priced here.
Federal and Provincial Tax
The Carbon Tax on Propane
The carbon tax is a government-mandated fee charged on the production, distribution, or use of fossil fuels based on the amount of greenhouse gases (GHG) emitted by each fuel.
The primary goal of carbon pricing is to reduce greenhouse gas emissions and promote the use of alternative fuels that are less harmful to the environment. Propane as a low-carbon, no polluting fuel, emits significantly less GHG than traditional fuels such as oil, which means you pay less carbon tax when using propane while helping reduce carbon emissions and enjoying a versatile, efficient source of energy for your home.
This charge is displayed on your bill to give you complete visibility on the cost of your propane.You can find more information about Fuel Charges from the Government of Canada website.
Propane Supplier Fees
Hazardous Materials (HAZMAT) Handling Fee:
When you receive a propane delivery, you may notice HAZMAT fees listed on your invoice. These fees cover the costs associated with the safe handling, transportation, and storage of hazardous materials like propane and help ensure that propane is transported and stored safely and in compliance with regulations. All propane suppliers are subject to a HAZMAT fee in compliance with these requirements.
Tank Pick-Up/Early End of Contract:
In addition to HAZMAT fees, there are other charges you may encounter. For instance, if you choose to end your contract early, your propane company may charge an early termination and/or tank pick-up fee. This is standard in the propane industry and in many other industries.
Additional Fees For After Hours/ Special Deliveries/Statutory Holidays
If you require propane on short notice or in an emergency, cartage fees for after hours/special deliveries/statutory holidays may apply. The best way to avoid such fees is to subscribe to our Auto Delivery plan, which ensures you always have fuel when needed.
We display these fees separately on your invoice as part of our commitment to transparency and proactive safety.
The delivery fee is a standard fee that considers costs to transport propane from its production point into our storage facility and finally to you. To provide a clear understanding of the price you pay, we separate the delivery fee, Hazardous Materials Handling Fee and the fuel price per litre (PPL) on your delivery ticket and invoice, so there are no hidden fees.
Every time we make a propane delivery, the driver delivering the propane to your home will perform a visual check of your tank, and if needed, a technician will be sent for a more comprehensive check up, proactively lessening risks of leaks, and making sure everything is in tip-top shape.
Safety is at the core of everything we do at Superior, we are committed to staying up-to-date with the latest safety regulations and implementing the necessary prevention measures to ensure the safety of our customers, employees, and the environment.
Take advantage of Automatic Delivery to ensure a continuous propane supply with fewer deliveries and associated fees. On the Automatic Delivery plan, we monitor your propane consumption and automatically schedule your fills. When you combine automatic deliveries with Superior’s Equal Payment Plan, you could be saving on associated delivery fees while spreading payments across 12 months for a predictable monthly bill.
Here’s how the automatic delivery process works:
This timeline may vary slightly as we work behind the scenes to procure your propane from our suppliers, unload it from our supply point, transport it to our storage facility, and then transfer it onto the truck before it makes its way to you.
DID YOU KNOW?
Propane tanks are typically filled to a maximum of 70-80% to leave room for gas expansion.
Tank Rental Fee:
It is an annual fee that helps offset maintenance costs for a supplier-owned tank. Rental costs may vary depending on tank size. Superior offers SMART*TANK™ sensors at no additional cost so customers can remotely monitor their propane levels from the mySUPERIOR app or web portal. This provides the ease, convenience and peace of mind of knowing at all times how much propane is in your tank at all times, and when your deliveries are coming.
Additionally, each time you receive a delivery, a visual check is performed on your tank to ensure that the propane tank valves and fittings are in working order before the tank is refilled, to ensure proper safe and efficient use of your propane. When you rent a propane tank with with Superior, there is no additional cost to if any parts need to be replaced, which also applies to any 420lb tank replacements, which are mandatory every 10 years in some Canadian provinces, we ensure that we comply with this and all other provincial regulations.
As a Superior Propane customer, it is important to remember that your propane tank should only be filled by Superior. Other companies will not be able to fill your tank, as propane suppliers are prohibited from servicing tanks owned by another company and when it comes to safety, other companies will not do regular checks and inspections on tanks they do not own, nor will they ensure compliance with local regulations. For your safety, it is preferable that your propane deliveries be made by the company that owns the tank.
This policy ensures a safe and hassle free- experience. By relying on Superior Propane for your home propane deliveries, you can trust that our dedicated experts will properly check the tank, ensure safety valves and fittings are up to date and compliant. Your safety and convenience are our priorities at Superior Propane.
How to get the best propane price for your needs
Even though propane prices can fluctuate year round, consumers have options that allow them to manage their budget by securing a fixed rate per propane litre for the entire year or spreading payments evenly every month instead of paying the full amount after each delivery.
With our pricing plans you always know what pricing to expect for the duration of your plan.
Fixed Price Plan (FPP):
With Superior Propane's Fixed Price Plan, you can lock in your propane price for a full year or regardless of propane price fluctuations, protecting you from any sudden price changes for the duration of your plan, similar to a fixed mortgage. You have the peace of mind of knowing what your propane costs will be every time you receive a delivery during the plan’s 12-month term.
Which Propane Price Plan is the Better Option – Fixed or Floating?
Price plans are similar to mortgage rates, with fixed and variable (floating) pricing. A fixed price offers stability and predictability, and can assist with budget planning. A variable rate can take advantage of favourable market conditions, which has the potential to save you money over the course of the year. The choice is yours when it comes to the plan that meets your needs.
Equal Payment Plan (EPP)
The EPP allows you to pay the same amount on a monthly basis, spreading your costs evenly throughout the year, regardless of propane price fluctuations, helping you budget your propane needs easier with a predictable monthly bill.
If you use more or less propane throughout the year, the payment amount will be adjusted twice each year to reflect your actual consumption. This option can make household budgeting easier.
Propane Price Shopping
Not all propane companies offer the same level of emergency services, safety programs, and contingency supply plans during service disruptions.
Superior Propane works closely with safety regulatory bodies for alternative fuels to exceed the highest safety standards in Canada. We also take proactive steps to keep your propane systems running smoothly and efficiently. Safety is at the heart of everything we do.
Our strong supply chain and ability to quickly adapt to changing demand enables us to consistently deliver propane, in good or in bad times. Our tank sensor technology enables us to remotely monitor propane tank levels, prioritise critical deliveries, and ensure reliable service even during unforeseen weather or critical transportation disruptions.
When comparing prices, it’s important to understand if the rate quoted is introductory, seasonal, variable or fixed. Some companies are prepared to offer below market prices to obtain new business, so make sure you’re comparing the right rates.
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