When propane tanks sell, gas goes to buyers
Gas tank exchanges have become a booming business in the United States, thanks in large part to a federal law that mandates that all gasoline be produced by burning natural gas.
In 2017, the U.S.
Gasoline Association announced it was buying propane fuel from companies to help offset the steep price hikes and fuel shortages that have plagued the U:Gasoline tanks are usually filled with propane to save on maintenance costs.
Now the tank swap program is making a comeback.
The new law, signed by President Donald Trump in 2018, has resulted in the tank exchange program, which has been in operation since the late 1990s, expanding by roughly a third since it was implemented.
The tank swap programs have helped fuel prices in the U, which have been skyrocketing since the recession hit.
The average price for a gallon of regular gasoline in January 2018 was $3.08, according to AAA.
The price jumped to $3:3.54 in December.
The swap program also has helped propane prices rise by about 20% in the last year.
“It’s been really good for propane,” said Andrew Miller, who runs the propane business at the Gasoline Warehouse in South Bend, Indiana.
“It’s helped propene prices in general go up, which is a good thing for propanes.”
Miller said he has been making propane in the warehouse since 2004.
He said the swap program helped propanes prices increase about 40%.
“The tank swap is helping to support our business, it’s really helped propensities,” Miller said.
The new law is a big boost for propylene tankers, but Miller is still looking to the future.
“I would like to see the industry to expand the tank swaps, so it’s just an ongoing thing,” he said.
Gas tank swaps are a fairly new phenomenon, and some of the companies that participated in the swap programs said they don’t know if they will make the next big jump.
“The goal is to grow it and we’re definitely going to continue to expand it, but we can’t say right now,” said Brian Koppelman, CEO of the American Tankers Association.
The swap programs started in 2007, and companies participating in the program must have a minimum of 250 tanks, which are used for a variety of purposes.
They can be used to move oil from a pipeline to the tank in a storage tank, or to move gasoline from a tanker to a storage vehicle.
“We want to make sure we have enough tank swaps in the future,” said Scott Koppel, the CEO of American Tanker and Supply in East Chicago, Illinois.
The first swap occurred in May 2018, and there were about 40 tankers participating in those swaps.
The program has grown to more than 400 tankers.
“You could probably get a tank at a gas station and you could get the gas there,” Miller added.
Miller said the tank program is just a way to help propane keep up with gas prices.
“In the short term, you want to have the lowest prices you can possibly find, but at some point we’re going to have to start going higher,” Miller told ABC News.
“And we have to keep our customers safe, and that means that we need to keep up the maintenance on them.”