Despite seemingly similar margins, The Propane Collective’s price per gallon is often significantly lower than Propane Cooperative’s because the two programs don’t start from the same base rate: The Propane Collective’s base rate is tied to the published California wholesale index while Propane Cooperative’s base rate is actually Ferrellgas’ internal “laid-in” cost — a bundled figure that includes the wholesale rate plus transportation and other undisclosed fees. In other words, it’s not a true wholesale rate despite Propane Cooperative marketing it as such.
Looking for a propane cooperative, co-op or buying group?
Make sure you've found the right one.
The Propane Collective®
Today's rates:
Not all buying groups are what they seem
Think of a propane buying group — often called a propane co-op or cooperative — as strength in numbers. Buying groups pool members together to negotiate lower propane costs than a household or business can typically get on its own.
The Propane Collective has been doing exactly that since 2005, when we started as an informal volunteer buying group, the Coloma-Lotus Propane Co-op. For over two decades, many locals referred to us simply as “the co-op.” We formalized as a business in 2023, following the law by deliberately avoiding the restricted terms “cooperative and “co-op” in our business name.
Unfortunately, we didn’t anticipate that someone else would ignore that law, which is why this page exists.
A former member of The Propane Collective® recently launched a competing buying group, Propane Cooperative. This name is prohibited under California corporate law and has created significant confusion with our name, and with our longstanding community identity as “the co-op.”
We welcome healthy competition and don’t typically address competitors’ business practices directly. But Propane Cooperative’s name selection and subsequent conduct have left us little choice.
The names are similar. So is the basic model. The details tell a very different story…
Choose wisely
5 things to look for in a propane buying group
Not all buying groups are structured the same way, and the differences can add up to hundreds of dollars a year. What you don’t know can cost you. Here’s what to look for:
1. Proven savings
Savings claims are easy to make but hard to quantify. The best propane buying groups publish their rates, pricing history, and price comparisons so the proof is there when you want it.
2. Verifiable pricing
Look for pricing based on a published wholesale rate, not on an internal wholesale rate controlled by the supplier. One is verifiable; the other isn't. See how this plays out in our base rate comparison below.
3. Full pricing & terms transparency
Propane pricing is unregulated and often murky. You want a buying group that posts their rates, complete terms, and pricing history publicly. If they won't, ask yourself why.
4. A propane supplier you can trust
A buying group is only as good as the supplier behind it. Ours is InterState Propane. If you read our member reviews, you'll understand why we chose them.
5. Staying power
Longevity matters. Anyone can launch a program; fewer can sustain one. Look for a track record you can verify and a long-term written agreement between the buying group and their propane supplier.
Only The Propane Collective delivers on every front.
The Propane Collective vs Propane Cooperative:
It all starts with the base rate
Both buying groups describe their base rate as “wholesale,” but only The Propane Collective uses a published California wholesale rate as the starting point.
Propane Cooperative calls their base rate wholesale, but it’s actually an unpublished internal Ferrelgas number: a combination of the wholesale rate plus transportation and other undisclosed fees.
The Original
The Propane Collective
supplied by InterState Propane
Base rate
Wholesale = Wholesale
Published California wholesale rate
Publicly verifiable
For Comparison
Propane Cooperative
supplied by Ferrellgas
Base rate
Wholesale ≠ Wholesale
Unpublished internal Ferrellgas rate
Not publicly verifiable
When the supplier sets the rules
When a supplier sets their own “wholesale” base rate, they can adjust it whenever they want, for any reason. For example, they could lower it temporarily to appear more competitive, or raise it if they’re not making enough money.
We learned this lesson firsthand in 2007. Two years into our first contract, our original supplier needed more profit so they added internal costs to their “wholesale” base rate. We had no control over it. That experience led us to require a published California wholesale rate ever since. When it came time to negotiate The Propane Collective’s supplier agreement, InterState Propane was one of very few suppliers willing to agree to this condition.
Your bill tells the story
Sample bills based on actual routed service pricing for Foresthill and Nevada City, April 16, 2026
The Propane Collective®
in partnership with InterState Propane
INVOICE
Date
April 16, 2026
Service
Routed / Auto-fill
Gallons
250
Base rate (published CA wholesale)
$1.04/gal
Margin
$0.89/gal
Price per gallon
$1.93
Delivery fee
$0.00
250 gal × $1.93
$507.50
Total due
$482.50
Propane Cooperative
supplied by Ferrellgas
INVOICE
Date
April 16, 2026
Service
Routed / Auto-fill
Gallons
250
Base rate (wholesale + add-ons)
$1.25/gal
Margin
$1.00/gal
Price per gallon
$2.25
Delivery fee
$0.00
250 gal × $2.25
$562.50
Total due
$562.50
The difference on just one fill:
$80.00
The Propane Collective vs Propane Cooperative
Complete pricing and program comparison
Transparency is not a talking point for us — it’s how we operate. Our pricing, contract terms, price history, comparison data, and even our compensation are published on our website. No other Northern California propane buying group gives you this level of visibility.
The Propane Collective®
Propane Cooperative
Established
2005 — Coloma-Lotus Propane Co-op
2023 — transitioned to The Propane Collective
Fall 2025*
Transparency
- Real-time rates published online
- Full rate history published online
- Full supplier terms published online
- Quote-based pricing
- No historical rates published
- Full terms not posted online
residential rate
$0.89 over CA wholesale base rate — routed
$ 1.19 over CA wholesale base rate — will-call
$1.00 over Ferrellgas internal base rate
(Marketed as “$1 over wholesale”)
commercial rate
$0.80 over CA wholesale base rate
No commercial program
base rate source
- Published CA wholesale rate
- Verifiable; set by the wholesale market
- Supplier-set internal rate
- Not independently verifiable
Price Examples
Residential routed
04/16/26
$1.93 all locations
03/14/26
$2.14 all locations
04/16/26
$2.25 Foresthill & Nevada City
03/14/26
$2.45 Nevada City
Savings Claims
- Savings estimates are documented via ongoing price comparison surveys.
- Consumers can also review complete price history and members' savings testimonials.
- Unsubstantiated and inconsistent savings claims made shortly after launch*
- No published rates, pricing history, or supporting methodology*
Membership Fee
$49/year — residential
$89/year — commercial
Varies – multiple changes to fee structure in 6 months*
Program Term
Through 12/31/29. Conditional extension to 2034 in process.
Claims lifetime pricing discounts, a claim not supported by Ferrellgas.*
Minimum Usage
300 gal/year
400 gal/year
Low-Usage Fee
$0 fee
Low-usage rate: +$0.30/gal
$150 fee
No low-usage rate
Tank Lease
250-gal tank
$35/year
$12/year, 1st year free
Exit fees
$0 exit fees of any kind for 2 years after InterState Propane contracted end date
Check if $0 tank pickup/pump-out fees are waived on Ferrellgas contract, and for how long.*
Scope & Compensation
One focus: lower community propane costs
Compensation: Membership fee only. No referral fees or commission.*
Multi-focus: propane, roofing, solar, electrical, HVAC, and insurance
Compensation: Membership fee. Referral fees or other compensation unknown.*
Business Credentials
- Registered CA LLC.
- California registered trademark.
- Based in Coloma, CA
- Propane Cooperative is an unregistered DBA operating under an LLC.
- Propane Cooperative and parent company Premium Home Service, LLC list 5 business addresses, none of which are verifiable.
- "Cooperative" is a legally protected term in California reserved for formally incorporated cooperatives, which Propane Cooperative is not.
Frequently asked questions
The Propane Collective & Propane Cooperative
Understanding the confusion
Are The Propane Collective and Propane Cooperative the same organization?
No. The Propane Collective is in no way affiliated with Propane Cooperative or its parent company, Premium Home Service Cooperative Group, LLC.
Why do people confuse The Propane Collective and Propane Cooperative?
The confusion stems from a former member of The Propane Collective launching a new buying group called Propane Cooperative in fall 2025 — a strikingly similar name targeting many of the same communities. Adding to that, The Propane Collective has been known as “the propane co-op” in this community since 2005, when we started as the informal Coloma-Lotus Propane Co-op.
If you were already known as "the propane co-op," why didn't you call yourselves The Propane Cooperative when you formed?
California law prohibits the use of “cooperative” and “co-op” in a business name unless formally incorporated as a cooperative — and Propane Cooperative’s name violates that law. Neither program is a legally incorporated cooperative. We chose to follow that law when we formalized as a business in 2023 by calling ourselves The Propane Collective. Unfortunately, we didn’t anticipate that someone else would ignore that law and create the resulting confusion.
What are you doing to address the confusion?
Several things. We registered The Propane Collective® trademark, strengthening our legal standing on the name issue. In April 2026, we notified Propane Cooperative that their use of “Cooperative” violates California corporate law and that their name creates confusion with our registered trademark. We requested they change their name; they did not respond. The letter was copied to legal counsel. Future action is under consideration.
We’re in the process of rebranding around The Propane Collective name more prominently — moving away from the “co-op” informal identity that’s become a source of confusion, and leaning into what’s made us the most trusted buying group in this community for over two decades.
And we’re doing what we’ve always done — letting our track record, our pricing transparency, and our community relationships speak for themselves.
Comparing the two programs
Which buying group will save me more money — The Propane Collective or Propane Cooperative?
Based on documented pricing comparisons, The Propane Collective consistently saves members more than Propane Cooperative: 2026 winter price comparisons show a savings of $80 from The Propane Collective on just one 250-gallon delivery.
Which buying group offers better long-term pricing stability — The Propane Collective or Propane Cooperative?
The Propane Collective offers better long-term pricing stability than Propane Cooperative for two reasons: 1) our base rate is tied to the published California wholesale index rather than a supplier-set internal cost that can be adjusted at any time, and 2) our contract with InterState Propane runs through 12/31/29 with a conditional extension in process to 2034. Propane Cooperative has not publicily disclosed their supplier contract expiration date.
The margins are close — $0.89 vs. $1.00 over wholesale. Why is The Propane Collective's price per gallon often so much lower than Propane Cooperative's?
To understand how that difference potentially impacts your cost, see our base rate explanation and bill comparison.
Why doesn't Propane Cooperative's 'wholesale' base rate reflect actual wholesale pricing?
When Propane Cooperative says “wholesale,” they’re actually referring to Ferrellgas’ internal “laid-in” rate — an industry term for a bundled figure that includes the wholesale rate plus transportation and other undisclosed costs. Two problems with that:
- Because extra costs are bundled into their base rate, you can’t do a true apples-to-apples comparison against a program like ours that uses a published wholesale base rate. (That’s why Propane Cooperative’s actual price is often significantly higher than The Propane Collective’s, even though their margin is only slightly higher.)
- Since Ferrellgas controls the base rate, they can raise or lower it whenever they want. Propane Cooperative has no say in it — and neither do you.
Our base rate is the published California wholesale index. No add-ons. 100% verifiable.
How does Propane Cooperative's membership fee compare to The Propane Collective's?
Propane Cooperative has announced multiple membership fee changes since launch — most recently from $104 one-time to $159 annually — and prospective members are frequently given 24-hour enrollment deadlines citing imminent fee increases. Their supplier contract term is not publicly disclosed, meaning the program and any pricing advantage could end at any time.
The Propane Collective’s low annual $49 residential fee ($89 commercial) is backed by a published supplier contract running through 12/31/29, with a conditional extension to 2034: transparent, stable, and no surprises.
How do I know either program will still be around in a few years?
Fair question — and one worth asking of any buying group: The Propane Collective has been running community-based propane buying groups since 2005, with a supplier contract running through 12/31/29 and a conditional extension in process to 2034.
Propane Cooperative has not disclosed the term of their Ferrellgas supplier contract, and their marketing claim of “pricing discounts for life” is not supported by their supplier, Ferrellgas. No supplier contract runs forever.
What should I look for in a propane buying group?
When choosing a propane buying group, transparency is everything — in pricing, terms, and the supplier relationship. That means:
- Published pricing tied to a verifiable base rate — no surprises.
- A written guarantee for how long the supplier is guaranteeing the pricing — and what happens after that.
- A supplier contract that protects you if the group dissolves.
- A reliable, established delivery partner.
- A track record you can actually check.
If a buying group won’t publish their rates and pricing history, can’t show you how to verify your pricing, or is vague about their supplier relationship and terms — those are signals worth paying attention to.