Winter PreBuy (PrePay Cap Contract)

406 Propane’s PreBuy program allows customers to save money and avoid the unpredictability of winter propane price fluctuations by prepaying for their winter propane needs at a set price per gallon. The PreBuy price is the capped, maximum price you will pay during the contract period, for the gallons purchased. Capped means your price cannot go higher, if, however the market price drops below the PreBuy price, your price follows.

As a PreBuy Customer:

  • You will be saving money on winter heating costs during the contract period
  • You must utilize a minimum of 500 gallons/year as your primary heat source
  • You will pay in advance (usually in late summer/early fall) for anticipated winter propane needs
  • You will enjoy the comfort & convenience of Auto Fill delivery.

Propane PreBuy FAQs

What is the Propane PreBuy Program?

Customers prepay for their winter propane needs at a set price per gallon. We contract a limited number of gallons to make this program available to our customers. Therefore, participation is limited on a first come-first, first- served basis. Offer ends without notice when the limited supply is sold.

How many gallons should I purchase?

  • You should purchase enough gallons to cover all your propane needs from October 1 to March 31 of the following year. You definitely don’t want to run out of PreBuy gallons during February or March when propane prices are highest.
  • If you call us, we can review your usage history and recommend the number of gallons to be purchased. You do, however, have the option to purchase more or less, depending on your circumstances.
  • We require a minimum purchase of 250 gallons.

What if I need more propane than the number of PreBuy gallons I contracted?

Any additional gallons needed, beyond the number of PreBuy gallons contracted, will be billed at the prevailing market rate at the time of delivery.

How can I pay for my PreBuy Program?

Payment may be made by cash, check, money order or credit card. We accept Visa, MasterCard and Discover credit cards.

What happens if the market price of propane drops below the capped price during the PreBuy contract period?

That is the beauty of 406 Propane’s PreBuy program.  The contract price is a capped, maximum price you will pay for your PreBuy gallons. If our market propane price falls below the contract price, you will be charged the lesser of those two prices

What happens if I don't use all the propane I bought?

The money you pay for PreBuy propane acts as a credit on your account. Any balance remaining after the PreBuy contract period may remain as a credit on your account to be used for future purchases, or you may request a refund of that amount.

If I used less propane than I purchased, can I just put the extra gallons toward the next year’s PreBuy?

No. The funds are yours, but PreBuy propane must be renegotiated each year for quantity and price.

How will I know when I've used all the PreBuy gallons?

At that time you will receive a statement that details your deliveries from the beginning of the contract period to current. If the gallons delivered exceed the gallons contracted, the statement will indicate the total amount due. Once all contracted gallons are delivered, future deliveries will be billed at current market prices and must be paid within our standard Net 30 Day terms (or other terms as 406 Propane my have extended).

Can I PreBuy at any time?

No. Only when the program is offered, generally during the summer months before the heating season begins. Offer ends without notice when the limited supply is sold.

For more information regarding 406 Propane’s PreBuy Program, Contact Us today.