FTC approves settlement in Blue Rhino, AmeriGas propane tank charges

When you are ready to get rid of an unwanted or expired propane tank, it’s important that you do it the right way to keep everyone safe. Propane tanks can’t be thrown away in your regular trash pickup, but we’re here to make disposal easy. Exchanging your old propane tank for a refilled one is the easiest way to dispose of it, but if you need to get rid of it for good- you can also just drop it off at most propane refill or exchange locations. Backyard grillers who found themselves a little short on flame in recent years may have been burned by Blue Rhino and AmeriGas Cylinder Exchange, the two leading suppliers of propane exchange tanks.

Bill Katz of AmeriGas said his company sent inspectors to each of the retailers where we bought its cylinders. He said the inspectors weighed and inspected every AmeriGas cylinder at each location. Each cylinder weighed right at, or in excess of, 15 pounds, he said. He swears no two 20-lb propane grilling cylinders are ever the same. It’s quicker to exchange a tank rather than have a gas-station attendant come out and fill your existing bottle. Filling a propane tank today (June 29, 2016) got us 4.7 gallons (20 pounds) at $2.99 per gallon, for the princely sum of $14.05.

AmeriGas and Blue Rhino’s Propane Cylinder Exchange Program

At that same Shell station was one of the exchange tank systems, in this case, Blue Rhino. I have no objection to that company, but know that what Blue Rhino (and others) offer is convenience — not a great price on fuel. https://cryptolisting.org/blog/how-do-blue-rhino-vs-amerigas-tank-prices-compare Consumers should also check cylinders for their manufacturing dates or “re-test” dates, a month and year etched into the handle. By law, grilling cylinders are supposed to be re-tested and re-certified every 12 years.

“Blue Rhino and AmeriGas conspired to fix the price of propane sold by agreeing to reduce the amount of propane in propane exchange tanks, thereby raising the per-pound price of propane across the country,” the class action lawsuit alleges. In the US, consumers typically use propane exchange tanks for barbecue grills and patio heaters. These propane tanks are sold to its customers to use for their grills, heaters, mosquito magnets, and other types of equipment that use propane gas. Both AmeriGas and Blue Rhino sell propane tanks to stores such as hardware stores, gas stations, convenience stores and grocery stores.

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I had bought a new regulator from Weber with a twist-quick connect, and needed a tank with that valve. I had posted this information on the Appliances forum in a thread about gas grills.

Agreements that restrict output or other terms of sale also fall in the per se category. Here, the FTC challenged concerted action that it determined had the effect of an anticompetitive agreement to raise prices, even though the competitors did not exchange information on price or agree on prices to submit to a customer(s). Other Mid-South retail outlets offer to re-fill propane cylinders on site, but consumers should confirm if the personnel performing those services are certified to fill the tanks.

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There are several reports on the net that the tanks filled by Blue Rhino only have 17.5 lbs of propane, not 20. Or whether this is an OPD phenomenon due to possible void space left in the tank by the float interlock. For liability reasons, if you choose to refill your tank, please remember to remove the plastic sleeve before having it refilled. I was fortunate and noticed on the label on the tank sleeve that the tank was to be refilled by Blue Rhino only. “We provide that amount of propane to help control the volatile cost of propane and other materials within our industry,” said Chris Hartley, vice president of marketing for Blue Rhino. Spokespersons for both companies admitted the 15-pound amount is a cost-saving measure.

Whether you choose to refill or exchange your propane tank, propane is the best way to keep your summer cooking. Propane is an affordable, easy to use, and efficient fuel that excels in backyard barbecues. Propane provides immediate heat and precise temperature control, which gives you the flexibility to prepare a variety of dishes that would be challenging with other outdoor heat sources. Under the settlements, which were reached in October, Blue Rhino and AmeriGas are barred from agreeing with competitors to modify fill levels or fix the prices of exchange tanks, and from coordinating negotiations with customers.

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Those empty tanks are then sent back to AmeriGas or Blue Rhino, who then refill, refurbish or replace the tanks and return filled tanks to the retailers. Cefo Enterprise alleges that due to an “unlawful conspiracy,” the company “paid artificially inflated and fixed prices for propane in exchange tanks.” Cefo also alleges that the two companies are violating antitrust laws. (WMC TV) – A combination of no minimum weight requirements and propane suppliers’ cost-saving policies is shorting consumers on the amount of propane they’re expecting when they buy or exchange grilling cylinders. What do you do when your 20-pound (5 gallon) propane tank is empty?

• Whether you choose to refill or exchange your propane tank, propane is the best way to keep your summer cooking.
• Here, the FTC challenged concerted action that it determined had the effect of an anticompetitive agreement to raise prices, even though the competitors did not exchange information on price or agree on prices to submit to a customer(s).
• If the valve is either circular or flower-shaped, it is an illegal cylinder.
• For liability reasons, if you choose to refill your tank, please remember to remove the plastic sleeve before having it refilled.

On the other hand, AmeriGas gives you 80% capacity, compared to Blue Rhino’s 75%. I noticed this because I was in the process of exchanging a non-OPD tank for an OPD tank through Blue Rhino at my local Sears Hardware. I also needed a different connection; mine was the sliding sleeve quick connect connection that Weber was selling.

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But no agency or law regulates the minimum amount of propane that should fill a cylinder. We arranged to have nexAir weigh each of the nine cylinders on its industrial scales. An independent company calibrates the scales twice a day. We took into account each cylinder’s tare weight, the weight of the cylinder itself, in making our calculations.

The AmeriGas class action lawsuit was filed by Cefo Enterprise Corp., which operates an ACE Hardware in Middleburg Heights, Ohio, and purchases propane exchange tanks from AmeriGas and Blue Rhino that it sells to its customers. The FTC complaint alleges that in 2008, Blue Rhino and AmeriGas, which together control 80 percent of the propane tank market, each reduced the level of propane in exchange tanks from to 15 pounds from 17, without a reduction in wholesale price. Lowe’s, Blue Rhino’s largest customer, agreed to the 15-pound tanks but only if all other retailers went along with it, according to the complaint. This class action lawsuit is for any person or company who “purchased propane in propane exchange tanks” directly from AmeriGas or Blue Rhino from July 21, 2008 and the present. Inflationary pressures, including the volatile costs of steel, diesel fuel, and propane, have had a significant impact on the cylinder exchange industry. In 2008, to help control these rising costs, Blue Rhino followed the example of other consumer products companies with a product content change.