3 Fees to Pay When You Cancel Contract with Propane Company

Cancel Contract with Propane Company
Contract termination

In most cases, you can cancel or terminate your contract with a propane company without any penalties or fees. However, it’s important to check your contract to see if there are any stipulations about terminating the agreement. Additionally, you should contact your propane company to let them know of your intention to cancel the contract. They may require you to provide a written notice of termination or they may have a specific process that you need to follow.

If you have a contract with a propane company, you may be able to terminate the agreement. However, there may be fees associated with doing so. It is important to read over your contract carefully to see if there is a clause that allows for termination and what the conditions are. If you do not have a contract, or if your contract does not allow for termination, you may still be able to cancel your service by giving the company written notice. Be sure to check with your state’s laws regarding propane service contracts and cancellation procedures.

Read related article: 8 Reasons Propane Company is Taking Tank (Can They Lock It?)

How Much is the Termination Fee

If you’re thinking about terminating your propane company’s contract, you may be wondering how much the termination fee will be. Unfortunately, there is no one-size-fits-all answer to this question, as the amount of the termination fee can vary greatly depending on your propane company and your individual contract.

That being said, it’s generally safe to assume that the termination fee will be at least a few hundred dollars – and in some cases, it may even be a few thousand dollars. So, if you’re considering terminating your propane company’s contract, be sure to factor in the cost of the termination fee when making your decision.

The cost of terminating a contract with a propane company can vary depending on the terms of the contract. Many companies charge a termination fee, which is typically a percentage of the remaining balance on the contract. This can range from $50 to $300, depending on the company. Some companies may also charge a prorated amount for the propane that has been used, and some may require that the tank be returned.

Three (3) Fees You Would Have to Shoulder

Tank pump-out fee

Tank pump out is charged when there is an excess gas above 5% of the capacity of the tank that need to be put out by the company. Most people are unaware that there is a propane tank pump-out fee.

This is usually around $50 and is required every time you need to have your propane tank pumped out. The propane company will come to your house and pump out the tank, which takes about an hour. This is necessary because it helps to keep the company’s equipment in good working order.

Tank pick-up fee

Can a propane company charge to pick up the tank?

One thing that we need to be aware of is the propane tank pick-up fee. Is your tank on your property leased or rented? You will be charged of pick up fee.

This is a fee that is charged by the propane company when they come to pick up your propane tank. The propane tank pick-up fee can vary depending on the company. Some companies may charge a flat rate, while others may charge based on the size of the tank. Be sure to ask your propane company about their pick-up fee so that you can budget accordingly.

While the propane tank pick-up fee may seem like a nuisance, it is important to remember that it is a necessary part of owning a propane tank. It helps to cover the cost of picking up and delivering your propane tank. Without it, the cost of propane would likely be higher.

Account termination fee

If you have a propane account with a company and you wish to close out the account, there may be a closeout fee. This can vary depending on the company, but it is typically around $50. This covers the cost of terminating the account and disconnecting the propane tank from your home. It is important to note that you may still be responsible for paying any outstanding balance on your account, even if there is a closeout fee.

You Can Send a Letter to the Propane Company Requesting for Service Termination

When you decide to terminate your propane service, it’s essential to communicate your request formally and clearly to the propane company. This is typically done by sending a letter or email. The purpose of the letter is to provide a written record of your request, ensuring that both you and the company have a clear understanding of the termination details. Here are the key elements to include and consider in such a letter:

  1. Personal Information: Start by providing your details, including your full name, address, and contact information. This helps the company to identify your account quickly.
  2. Account Information: Include your account number or any other relevant details that are specific to your service with the company.
  3. Request for Termination: Clearly state that the purpose of the letter is to request the termination of your propane services. Be explicit about this to avoid any misunderstandings.
  4. Effective Date: Specify the date when you want the service to be terminated. This is important for the company to schedule any necessary actions, such as final meter readings or equipment removal.
  5. Reason for Termination (Optional): While not mandatory, you can include the reason for termination, especially if it’s related to service issues. This can be helpful feedback for the company.
  6. Final Billing and Charges: Request a final statement or bill that includes any outstanding balances or prorated charges. This ensures that all financial matters are settled appropriately.
  7. Equipment Removal: If you have any rented equipment from the company (like propane tanks), mention the need for its removal and inquire about the process.
  8. Confirmation Request: Ask for a written confirmation of your termination request. This serves as proof that the company has received and is processing your request.
  9. Closing: End the letter politely and thank the company for their services. Provide your signature (for a physical letter) or a formal closing (for an email).
  10. Follow-Up: After sending the letter, it might be necessary to follow up with a phone call to ensure that your request is being processed.

This letter is an important step in formally ending your relationship with the propane company and ensures that all parties are aware of the termination and any actions that need to be taken.

Read The Contract You Signed with the Propane Company

Understanding the contract you signed with a propane company is crucial when you’re planning to terminate the service. These contracts often contain specific terms and conditions that govern how and when you can cancel your service, along with any potential fees or obligations. Here are the key aspects you should review in your contract:

  1. Termination Clause: This section outlines the process for terminating your service. Look for any required notice periods, conditions for early termination, and procedures for official notification (such as a written letter or email).
  2. Fees and Penalties: Some contracts may include penalties or charges for early termination, especially if you’re under a fixed-term agreement. Understanding these costs is important to avoid unexpected expenses.
  3. Equipment Return: If you have rented equipment (like propane tanks) from the company, the contract should specify how and when to return it. There may be conditions regarding the state of the equipment upon return.
  4. Final Billing: The contract should detail how final billing is handled. This includes how any outstanding balances or credits will be managed upon termination of the service.
  5. Service Specifics: Review any sections detailing the specific services provided and any obligations you have as a customer. This ensures that you have met all requirements before terminating the service.
  6. Dispute Resolution: In case of any disputes regarding the termination of your service, the contract will usually have a section on how such matters are resolved.

Understanding these aspects of your contract will help you navigate the process of terminating your propane service smoothly and in compliance with the agreed-upon terms. If any part of the contract is unclear, it might be beneficial to consult with a legal expert or directly with the propane company for clarification.

Understand the Customer Agreement with Propane Company You Signed

The customer agreement with the propane company is a contract between the customer and the company that provides propane services. This agreement sets forth the terms and conditions under which the customer may purchase and use propane from the company. The agreement is made between the customer and the company and is binding on both parties.

The agreement sets forth the customer’s right to purchase propane from the company, and to use the company’s facilities and equipment for storing and using propane. The agreement also sets forth the customer’s obligations to the company, including payment for propane purchases, safety procedures, and compliance with all laws and regulations.

The agreement is subject to change by the company at any time, without notice to the customer. The customer agrees to be bound by any such changes. The customer agrees to purchase propane from the company only for lawful purposes and to use such propane only in a safe manner consistent with all applicable laws and regulations.

The customer agrees to indemnify and hold harmless the company from any claims arising out of or relating to the customer’s purchase or use of propane from the company.

This agreement shall be governed by and construed in accordance with the laws of [state or country in which the agreement was made. This agreement constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior agreements, understandings, negotiations, and discussions between them.

It is important for customers to understand their agreement with their propane company. This agreement outlines the terms of service, including the price of propane, delivery schedule, and other important details. By understanding this agreement, customers can be sure they are getting the best possible service from their propane company.

Make a Decision If You Need to Leave Propane Company

There are a few things to consider when making the decision to leave your propane company. The first is whether or not you are happy with the service you are receiving. If you feel like you are constantly having issues with your propane tank or delivery, it may be time to switch companies.

Another thing to consider is the price of propane. If you feel like you are paying too much for propane, there may be other companies in your area that can offer a better price. Finally, you should consider whether or not you have another source of propane. If you have a backup plan in case of an emergency, you may feel more comfortable leaving your current company.

As a propane company customer, you may find yourself in a position where you need to leave your current provider. This can be for a variety of reasons but usually boils down to cost or customer service. Here are some things to consider when making your decision: Is your current provider’s price per gallon significantly higher than other providers in your area?

Are you paying hidden fees that you’re not aware of? If the answer to either of these questions is yes, then it might be time to switch providers.-Customer service: Have you been unhappy with the customer service you’ve received from your current propane company?

If you’ve been repeatedly put on hold, given the runaround, or otherwise treated poorly, then it’s probably time to switch providers.-Convenience: Is your current propane company inconvenient to deal with? Do they have long wait times for deliveries? Are their delivery hours inflexible? If any of these are true, then you might want to consider switching providers.

Making the decision to leave your propane company can be difficult, but if you keep these things in mind it should help make the process a little easier.


In summary, when canceling a contract with a propane company, it is essential to be aware of various charges that may apply. These fees, typically specified in the contract, are designed to cover the company’s costs associated with early termination, equipment handling, and administrative processes. The most common charges include early termination, equipment removal, and account closure or processing fees.

Being informed about these potential expenses helps in making a well-considered decision and ensures a smoother transition while managing financial expectations. As every contract may have different terms, it is advisable to review your specific agreement carefully or seek clarification from the propane company to avoid any surprises.

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