Nova Scotia

Skyrocketing rental fees ‘shock’ some Superior Propane customers

Superior Propane customers across Canada are expressing frustration over a recent hike in tank rental fees. Mathieu Savoie of Moncton, N.B., was shocked to see his annual bill increase from $199 to $300. He received a written notice from Superior Propane last August informing him of the 50 per cent increase in rental fees.

The price hike only applies to equipment rental, with the cost of propane being a separate expense for customers. In a notice to affected customers, Superior Propane explained that the increase was necessary due to infrequent propane deliveries, in order to ensure fairness and sustainability.

Patricia Jodrie of Berwick, N.S., also experienced a significant increase in her tank rental fee, jumping from $159 to $300. She felt that the notice she received from Superior Propane was cold and felt like she was being penalized for not using enough propane.

Several other customers in Nova Scotia, Newfoundland, and British Columbia also shared their dissatisfaction with the price hike. Jodrie decided to switch propane suppliers after the increase, as did Savoie. Fortunately, Superior did not charge them for cancelling their contracts or removing equipment.

In response to the backlash, Superior Propane stated that the rental fee adjustments were made for tanks that were inactive or minimally used for extended periods. The company cited rising costs associated with maintaining and inspecting equipment, as well as increased expenses for tank maintenance and inspections.

Geoff White, executive director of the Public Interest Advocacy Centre, found the price jump troubling and questioned the rationale behind it. He speculated that the increase may be a move to benefit shareholders at the expense of smaller users.

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Superior Propane’s general retail agreement includes a requirement for customers to purchase a minimum of 200 litres of product per year, or a standby fee may be charged. Eslami, an associate professor of marketing, criticized the agreement for lacking transparency on potential fee increases.

Despite Superior Propane’s offer of a no-cost pickup service for rental tanks, some customers like Savoie have found the process to be lacking urgency. The unexpected price increase has left many customers feeling blindsided and questioning the company’s motives.

As customers continue to voice their concerns over the price hike, Superior Propane may need to reevaluate its approach to rental fees in order to maintain customer satisfaction and trust.

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