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: