Comparing 45kg Exchange Pricing vs Tanker Refill Pricing

It can be confusing to compare 45kg exchange pricing with onsite tanker refill pricing. The first thing to remember is that a 45kg LPG gas bottle contains 88 litres of LPG.

Once you know the conversion rate, it is just simple arithmetic to compare prices.

Example 1: You Currently Purchase LPG Priced per Litre

You currently pay $1.50 per litre for tanker refill. If you multiply the price by 88 you will determine the equivalent 45kg exchange pricing.

So: $1.50 x 88 = $132 per 45kg equivalent.

Example 2: You Currently Purchased LPG Priced per Bottle

You currently pay $140 per bottle. If you divide the price by 88 you will determine the equivalent tanker refill pricing.

So: $140 ÷ 88 = $1.59 per litre (rounded)

 

Always ask your 45kg gas bottle price before re-ordering

What to Do if the Other Method of Delivery is Cheaper

If you currently receive onsite tanker refill, and exchange is cheaper, you can ask to be changed to 45kg exchange delivery. All tanker delivery companies also offer 45kg exchange delivery, as tanker delivery is unsuitable for certain installations.

In the unlikely event that they refuse to change you over at the better price, you can always call one of their competitors, all of whom would be happy to have you as an exchange customer.

If you are on exchange delivery and discover that tanker refill is cheaper, you can ask to be switched to tanker refill, if on offer. Some LPG companies do not offer tanker delivery, so you may need to switch suppliers.

Timing: When to Switch Delivery Methods

The easiest time to switch us when your annual rental charge comes due. However, some suppliers offer pro rata refunds on rent, if you end service before the end of the rental year. In this case, you can switch whenever you want. Just check their Terms and Conditions online to suss out their policy before you act.

Which is Generally Cheaper?

Which method of delivery is generally cheaper depends on the competitors involved and their local delivery capacity and strategy.  If they don’t have excess tanker capacity or no tankers at all, then exchange will be cheaper.

Conversely, if they have excess tanker capacity, tanker refill pricing may be lower.

Don’t Forget to Ask the Rental Charge

The only difference between the gas bottles for tanker refill versus exchange is in the valves. The cost differential is minimal so the rental pricing should be comparable.

Specify Who Determines Delivery

Many tanker refill suppliers offer automatically scheduled delivery. Most people prefer this, as it is a lot easier and you never forget to order.

However, there may also be instances when they refill your gas bottles after the end of heating season. Some people object to paying for a refill before it is necessary. In this case, you should be able to specify delivery upon calling only.