Colorado propane pre-buy programs explained
What to compare in propane pre-buy, fixed-price, and cap-price programs, and the questions that reveal the real risk.
A pre-buy trades flexibility for price certainty. Whether it helps depends on contract terms: whether price is fixed or capped, what happens to unused gallons, and what you owe if you leave.
Common structures
Names vary by company, so read the actual terms.
- Fixed price: a set per-gallon price for a set quantity.
- Capped price: floats down but not above a limit, sometimes for a fee.
- Prepaid: you pay up front for gallons to be delivered later.
- Reservation: secures a price or supply without prepayment.
Risks to check
If the market falls, a fixed price may look high in hindsight. If you move, use less, or switch suppliers, ask whether you get a refund, credit, or lose the balance. A prepayment is also money held by a business; ask how it is handled.
Who it fits
Households that value a known cost, can predict their use from past receipts, and plan to stay with one supplier. It fits less well when use is uncertain.
Hypothetical: fixed price against a changing market
A made-up 300-gallon pre-buy at $3.20.
| Pre-buy at $3.20 for 300 gallons | $960 |
|---|---|
| If market later reaches $3.60 | $1,080 would have been paid, $120 more |
| If market later falls to $2.90 | $870 would have been paid, $90 less |
All dollar figures in this worked example are hypothetical round numbers chosen to show the arithmetic. They are not EIA data, not a quote, and not a prediction. It shows both outcomes are possible; this site does not predict which occurs.
Checklist
- Get the contract in writing.
- Confirm the quantity, price, and delivery window.
- Ask what happens to unused gallons.
- Ask whether you can still choose delivery timing.
- Compare against a no-commitment quote the same week.
Official sources
- EIA Energy Explained: propane prices. Background on what moves propane prices.
- Colorado Oil and Public Safety: Liquefied Petroleum Gas program. State program page for liquefied petroleum gas (LPG).
- EIA Colorado residential propane series (W_EPLLPA_PRS_SCO_DPG). The official weekly Colorado series with observation dates.
Related guides
Frequently asked questions
- Will a pre-buy save me money?
- It might or might not. Nobody can promise it.
- Is a pre-buy the same as budget billing?
- No. One concerns price terms, the other payment timing.
- Where do I report a supplier problem?
- Ask the supplier first, then see the Colorado LPG program page linked on this page.
Content reviewed October 5, 2026. Dates of data observations are separate and shown at the source.
Location picks reflect Colorado Propane Prices’ editorial judgment, not independent testing. Confirm every supplier’s coverage and delivered price directly. General information only; not a quote, not professional advice, and no price is guaranteed.