• Report: #1016418

Complaint Review: Osterman Propane

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  • Submitted: Mon, February 18, 2013
  • Updated: Mon, February 18, 2013

  • Reported By: Adam — Quaker Hill Connecticut United States of America
Osterman Propane
7 Enterprise Lane Oakdale, Connecticut United States of America

Osterman Propane Osterman Propane Robs Small Customers Oakdale, Connecticut

*UPDATE Employee ..inside information: Osterman Rebuttal

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When Osterman Propane acquired Hendel's Propane business in 2007, we became customers of Osterman.  "Waterford, CT November 19, 2007 Osterman Propane is pleased to announce the acquisition of Hendel's Petroleum Inc. of Waterford, CT. Hendel's serves over 5,000 propane customers in southeast Connecticut.  - Ostermangas.com"  Ever since Osterman acquired the company our propane prices have gradually been going up.

The last delivery we had from Osterman, they charged us $5.399/gallon!  I had had enough.  I assumed prices for propane were high, but when I researched the current prices for small users, all of the quotes I received were under $3.00/gallon.  I had no idea how ridiculous the price was.

We only use 100 gallons a year and on top of the ridiculous price, they still charge an additional $85/yr tank rental fee for small users.  In effect, we ended up paying over $6.00/gallon counting the tank fee.  Apparently Osterman does not want small customers and their strategy is to gouge them until they leave.  I find this practice underhanded and this company is sleazy.  They could have encouraged small customers to leave by notifying them that they preferred not to service them, instead of gouging them until they leave.  I have to say I feel a bit cheated and stupid for not investigating this sooner.  I am sure they don't have 5,000 customers in southeast Connecticut anymore!

This report was posted on Ripoff Report on 02/18/2013 05:48 PM and is a permanent record located here: http://www.ripoffreport.com/r/Osterman-Propane/Oakdale-Connecticut-06370/Osterman-Propane-Osterman-Propane-Robs-Small-Customers-Oakdale-Connecticut-1016418. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 1Consumer 0Employee/Owner
Updates & Rebuttals

#1 UPDATE Employee ..inside information

Osterman Rebuttal

AUTHOR: Osterman Ombusdman - ()

 Dear Customer,

We are sorry that you are dissatisfied with our service. Osterman did acquire Hendel's Propane in 2007. At that time, we notified all new customers regarding our terms and policies. Osterman Propane does not charge rental, regular delivery fees or other surcharges. Our only fee is a minimum usage charge which requires the customer to purchase one tankfull of propane per year. If not, we are unable to cover the costs of providing service to you.

It seems unlikely that you did use 100 gallons a year, as if you did, you would not have been charged the $85 tank rental. We do have some very low volume users who do have high per gallon prices such as for cooking. But for a customer who uses 30-40 gallons per year it equates to only $0.60 per day for propane.

I am also certain that you were made aware when calling competitors that their low prices were "first-fill" or introductory rates for new customers. In addition, many of our competitors are able to offer lower per gallon prices because they charge additional monthly tank rental and/or high delivery charges and fees.

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