Michigan propane customers advised to secure fixed-price contracts early to avoid higher winter heating bills.

Early Summer is the Best Time to Lock In Michigan Propane Contracts

LANSING, MI — Michigan propane customers are being urged to lock in their heating contracts now to avoid higher costs and supply issues during the coming winter. The Michigan Public Service Commission (MPSC) released the advisory this week, emphasizing that early summer offers the best opportunity for households to secure favorable pricing on propane contracts.

“Even though we’re just getting into summer, now is the best time for users of the fuel to lock in contracts for the upcoming winter to ensure you’ll have enough supply to keep your family warm,” the MPSC stated.

Michigan Has Highest Residential Propane Use in the U.S.

Propane is a critical heating fuel for many Michigan residents, especially in rural and northern areas. According to the MPSC, Michigan leads the nation in residential propane use. Roughly 320,000 households rely on propane for heating, representing 8% of homes statewide, with usage rates as high as 24% in parts of the northern Lower Peninsula and 18% in the Upper Peninsula.

This heavy reliance on propane makes the state particularly vulnerable to price swings and supply disruptions during peak heating months.

Fixed-Price and Pre-Buy Michigan Propane Contracts Help Stabilize Costs

The MPSC recommends that customers consider fixed-price and pre-buy plans, which allow consumers to purchase propane at a set price before winter demand drives prices higher.

“Many propane suppliers offer pre-buy and fixed-price plans that can save consumers money by insulating them against volatile market prices later in the season,” the agency advised.

The commission also suggests that customers know their average annual propane usage before committing to a plan to avoid over- or under-purchasing. Once prepaid allotments are exhausted, prices may revert to market rates, which could spike during cold snaps or supply shortages.

Budget Plans Offer Predictable Monthly Payments

In addition to fixed-price Michigan propane contracts, some suppliers offer budget plans that spread heating costs across the year. These plans allow families to make equal monthly payments, helping households manage their energy budgets and avoid large winter bills.

Key Questions to Ask Before Signing Michigan Propane Contracts

The MPSC advises propane users — especially new customers or those considering switching suppliers — to ask several critical questions before signing any contract:

What are the service, budget, and payment options?
How are prices determined?
What fees might apply for installation, service, equipment rental, or disconnection?
How often will tanks be refilled?
What notice is required for emergency fills?

Understanding these terms can help customers avoid unexpected costs later in the season.

Leasing vs. Owning Propane Tanks Carries Trade-Offs

The commission also urges consumers to carefully consider whether to rent or own propane tanks in their Michigan propane contracts. Renting often transfers responsibility for maintenance and safety inspections to the supplier, but comes with rental fees. Owning a tank may save money in the long run but places full maintenance obligations on the homeowner.

Michigan Public Service Commission Monitors Propane Markets

While propane prices are not regulated in Michigan, the MPSC monitors the propane market for pricing irregularities and potential supply disruptions. The commission publishes weekly statewide average propane prices during the heating season, beginning October 1. This data helps consumers track price trends and better time their fuel purchases.

Assistance Available for Households Struggling with Heating Costs

For Michigan residents facing financial difficulty, multiple assistance programs exist:

Michigan 211 offers free, confidential connections to services related to food, housing, transportation, and home energy bills. Residents can call 211 or visit www.mi211.org.
The MPSC’s energy assistance page offers resources for customers applying for utility support: www.michigan.gov/mpsc/gethelp.
The U.S. Department of Energy provides additional propane energy-saving tips to help households reduce heating costs.

Supply Concerns Loom as Global Energy Markets Remain Volatile

While the MPSC’s advisory focuses on consumer contract timing, experts note that broader energy market volatility still poses risks. According to the U.S. Energy Information Administration (EIA), global propane exports and supply chain challenges can impact domestic availability and prices, especially during severe winters?U.S. Energy Information Administration, “Winter Fuels Outlook,” 2024?.

With Michigan’s heavy dependence on propane, officials warn that failing to secure contracts early could leave some households vulnerable if prices spike or inventories tighten during the winter heating season.

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