Fuel Oil and Propane Dealers Industry Terminology

Accounts Receivable (A/R)

Money owed to the dealer by customers for delivered fuel, service work, and tank leases that has not yet been collected. Managed through credit policies, aging buckets, collections, and Days Sales Outstanding (DSO).

Our A/R over 60 days spiked after the cold snap; collections need to accelerate.;Tightening credit limits dropped DSO from 52 to 41 days.;The budget plan reduces A/R volatility during peak winter months.


Automatic Delivery

A delivery model where the dealer schedules fills proactively using degree-day forecasting, consumption history, and/or tank monitors to prevent run-outs.

We set Mrs. Lee up on automatic delivery using her K-factor.;Auto-delivery increased route density and cut will-call emergencies.;Tank monitors now refine our automatic delivery drop sizes.


Autogas

Propane used as a motor fuel for on-road or off-road vehicles. Requires approved fueling hardware and tax reporting; marketed to fleets like school buses, paratransit, and municipal vehicles.

The district converted 20 buses to propane autogas.;We installed a private autogas station with dispenser and card reader.;Autogas margins differ from residential propane pricing.


Back-Office Software

Enterprise software that supports order entry, routing, meter imports, pricing, invoicing, inventory, service dispatch, and financial reporting for dealers.

The back office pushes optimized routes to the bobtails each morning.;Automated pricing rules in the system preserved margin during a spike.;Our ERP integrates delivery tickets with A/R in real time.


Bioheat Fuel

Heating oil blended with biodiesel (e.g., B5, B10, B20) and ultra-low sulfur distillate, marketed as a lower-carbon, cleaner-burning alternative to traditional No. 2.

We’re moving all customers to B20 Bioheat Fuel this season.;The boiler warranty approves Bioheat up to B20.;Bioheat helps meet state greenhouse gas reduction targets.


Bobtail

A straight truck fitted with an MC331 cargo tank and meter used to deliver propane to end users. Typically 2,800–5,500 water-gallon capacity, with hose reel, emergency shutoffs, and delivery meter.

The bobtail is scheduled for its annual meter calibration.;Dispatch added four more stops to the Route 3 bobtail.;The driver secured the hose and engaged the E-stop per procedure.


British Thermal Unit (Btu)

A unit of heat energy. Approximate heating values: propane ~91,500 Btu per gallon; No. 2 heating oil ~138,500 Btu per gallon. Used for load calculations and burner sizing.

The furnace input is 100,000 Btu per hour.;Switching from oil to propane changes delivered Btu per gallon.;We sized the nozzle to match the home’s Btu load.


Budget Plan (Level Pay)

An even monthly payment plan (often 10–12 months) based on forecasted annual consumption and price, designed to smooth customer cash flow and reduce winter A/R spikes.

Join our 12-month budget plan to avoid large winter bills.;We reconcile the budget plan annually based on actual gallons.;Budget customers have lower churn in price spikes.


Cathodic Protection

Corrosion control for underground steel propane tanks and metallic piping using sacrificial anodes and testing to maintain adequate protection per code.

The underground tank failed its cathodic protection test and needs an anode bag.;Document cathodic readings at each GASCheck visit.;NFPA 58 requires periodic cathodic protection testing.


CETP (Certified Employee Training Program)

NPGA’s standardized training and certification curriculum for propane personnel covering safety, operations, delivery, and installation practices.

New drivers must pass CETP Basic Principles and Bobtail Delivery.;CETP records are required during safety audits.;We scheduled CETP refresher training before heating season.


Combustion Efficiency

A measure of how effectively a burner converts fuel to usable heat, typically determined via flue gas analysis (O2, CO2, stack temperature, CO). Higher efficiency reduces fuel consumption.

The tune-up improved combustion efficiency from 80% to 85%.;Stack temperature and draft readings indicate suboptimal efficiency.;We recommend a new burner to boost combustion efficiency.


CRM (Customer Relationship Management)

Systems and practices to manage leads, customers, renewals, service tickets, and marketing communications to increase retention and cross-sell.

CRM segmentation targeted price-cap renewals.;We flagged at-risk will-call customers in the CRM.;The CRM integrates service histories with delivery data.


Cylinder Purging

Proper removal of air and moisture from new or opened propane cylinders prior to initial filling, using approved purging methods to ensure safe operation and correct vaporization.

Purge new 100-pound cylinders per NFPA 58 before filling.;Moisture in an unpurged cylinder caused pressure fluctuations.;The team uses a dedicated purge manifold at the plant.


Degree Day

A weather-based index of heating demand relative to a base temperature (commonly 65 F). Dealers use accumulated degree days to predict consumption and schedule deliveries.

We dispatched when the account reached 850 degree days since the last fill.;Warmer winters reduce degree-day totals and gallon sales.;The K-factor links degree days to expected gallons.


Dispatch Optimization

The use of software, GPS, and algorithms to sequence stops, manage time windows, and balance loads to minimize miles, overtime, and run-outs.

Optimization increased drops per hour by 12%.;We re-sequenced routes using live traffic and tank monitor data.;Drivers see optimized stop lists on their in-cab tablets.


DOT Cylinder

A portable LPG cylinder manufactured to U.S. DOT specifications (e.g., 4BA240). Requires periodic requalification and correct valve/OPD configuration.

That 20-pound DOT cylinder is due for requalification.;Use the correct POL/ACME connections per cylinder type.;We check the collar stamp for the original test date.


EIA (Energy Information Administration)

U.S. federal agency providing energy data and analysis, including the Weekly Heating Oil and Propane Update, inventories, and price benchmarks used by dealers.

We track EIA HOPU to benchmark retail pricing.;EIA storage data signaled tighter propane supply.;The hedging team follows EIA weekly stats.


Emergency Run-Out

A situation where a customer has run out of fuel unexpectedly, requiring urgent delivery and mandatory safety checks before restoring service.

After the emergency run-out, we performed a leak check and relit appliances.;Will-call behavior increases run-out risk during cold snaps.;We charge an after-hours fee for emergency run-outs.


Excess Flow Valve

A safety valve that automatically limits flow when a sudden, excessive rate indicates a downstream line rupture or major leak.

The excess flow valve tripped when the line was severed.;Verify the EFV resets after pressure equalizes.;Some service valves include built-in excess flow protection.


Fixed Liquid Level Gauge (Bleeder)

A small gauge valve on ASME propane tanks that indicates when the liquid level reaches the maximum permitted fill (about 80%). Visible mist at the bleeder signals stop-fill.

The bleeder spit liquid vapor at 80%, so the driver stopped filling.;We check the fixed liquid level gauge during training.;Do not rely on the float gauge alone; verify at the bleeder.


Fixed Price Program

A retail offering that locks a customer’s price per gallon for a defined period. Dealers typically hedge with swaps or futures to manage price risk.

Customers signed fixed price contracts at 299 per gallon.;We layered swaps to cover fixed price exposure.;The agreement outlines early-termination terms and gallons.


Fuel Oil No. 2 (Heating Oil)

A distillate fuel used in oil-fired boilers and furnaces. In many states it is ultra-low sulfur (ULSD) and dyed red for off-road/non-highway use.

Your tank uses No. 2 ULSD heating oil.;Cold flow improvers were added to the heating oil.;The nozzle size matches the oil burner’s required input.


Full-Service Dealer

A company that not only delivers fuel but also installs and services equipment, leases tanks, offers budget/price programs, and provides 24/7 support.

As a full-service dealer, we include annual tune-ups.;Full-service accounts have higher retention and margin.;We differentiate from cash discounters by service level.


Gallons Per Hour (GPH Nozzle)

The rated flow of an oil burner nozzle at a specified pressure (commonly 100 psi). Determines appliance input in Btu per hour.

A 0.75 GPH nozzle provides roughly 105,000 Btu per hour.;We adjusted from 1.00 to 0.85 GPH to match the heat load.;Verify spray angle and pattern along with GPH.


GASCheck

NPGA’s standardized residential propane system safety inspection program using checklists and documentation for tanks, regulators, piping, and appliances.

We performed a GASCheck after setting the new tank.;The GASCheck found a regulator vent issue.;GASCheck documentation supports our safety audits.


Gross vs Net Gallons

Gross gallons are measured at the product’s actual temperature; net gallons are corrected to 60 F using Automatic Temperature Compensation (ATC). Impacts billing and inventory reconciliation.

The state requires retail propane sales in gross gallons.;We reconcile transport receipts in net gallons at 60 F.;ATC meters convert to net gallons automatically.


HAZMAT Endorsement (CDL)

A commercial driver’s license endorsement (H) required to transport hazardous materials, often paired with the Tanker (N) endorsement; combined as the X endorsement in many states.

New drivers must earn H and N endorsements before bobtail training.;Our insurance requires active HAZMAT background checks.;The X endorsement is listed on the driver’s CDL.


Hedging

Using financial instruments (futures, swaps, options) or fixed supply contracts to manage exposure to commodity price volatility and protect margins.

We bought call options to cover the price-cap program.;Fixed price contracts are hedged with calendar swaps.;The hedge ratio matches committed retail gallons.


K-Factor

A customer-specific ratio of degree days per gallon consumed. Forecast consumption as gallons used equals degree days since last delivery divided by the K-factor.

With a K of 7, we expect about 100 gallons after 700 degree days.;We recalibrated K-factors after the insulation upgrade.;Automatic delivery uses K plus weather forecasts.


Leak Check

A test per NFPA 58 to verify the integrity of a propane system after an interruption of service, new installation, or suspected leak, typically using pressure testing and leak detection solution.

After an out-of-gas call, a leak check is mandatory.;The system held pressure for the required time.;Document leak check results on the service ticket.


Load Planning

The process of assigning orders to specific trucks and shifts, balancing capacity, time windows, and geography to maximize drops and minimize miles.

Load planning increased average drop size by 12 gallons.;We prebuild loads nightly using forecasted degree days.;The planner consolidated two routes to one.


LP-Gas (Liquefied Petroleum Gas)

A family of hydrocarbons stored as a liquid under pressure, primarily propane in U.S. retail markets, sometimes blended with butane seasonally.

The LP-gas tank is an ASME 500-gallon vessel.;LP regulators reduce tank pressure to appliance pressure.;We verify LP-gas odorant levels during inspections.


Margin Per Gallon

The difference between sell price and delivered product cost per gallon, typically tracked in cents per gallon (cpg). Can be analyzed as gross or net of delivery and service costs.

Winter average margin per gallon was 92 cpg.;Dynamic pricing protected margin during the rally.;We monitor margin by segment: residential, autogas, commercial.


MC331 Cargo Tank

A DOT specification for pressure vessels used on bobtails and transport trailers to haul propane and related pressurized products. Includes specific relief, valve, and construction requirements.

Our new bobtail has a 3,500-gallon MC331 tank.;Annual cargo tank inspections are scheduled next month.;The MC331 spec governs the emergency shutdown system.


Meter Calibration

Testing and adjusting delivery meters against a certified prover to meet Weights and Measures tolerances; ensures accurate billing and legal compliance.

The oil truck meter was out by 0.3% before calibration.;Keep calibration seals and certificates on file.;Cold product can shift meter accuracy; schedule seasonal checks.


NFPA 31

Standard for the Installation of Oil-Burning Equipment. Covers oil tanks, piping, appliances, chimneys, clearances, and safety for fuel oil systems.

The venting arrangement must comply with NFPA 31.;NFPA 31 guides indoor tank installation clearances.;The inspector cited NFPA 31 for relief valve placement.


NFPA 58

Liquefied Petroleum Gas Code. The primary standard governing propane storage, handling, transportation, tank sets, piping, regulators, and safety procedures.

Regulator venting must meet NFPA 58 requirements.;NFPA 58 defines separation distances for tank sets.;Training aligns our SOPs with NFPA 58.


Odorant (Ethyl Mercaptan)

A sulfur-containing chemical added to propane so leaks are detectable by smell. Odorant fade can occur; dealers monitor levels and educate customers.

The customer reported a strong odorant smell near the appliance.;We discussed odor fade and installed gas detectors.;Transport bills of lading list odorant injection rates.


OPD Valve (Overfill Prevention Device)

A device required on most 4–40 lb DOT cylinders that limits filling to approximately 80% liquid volume. Identified by a triangular handwheel.

We cannot fill that cylinder; it lacks an OPD valve.;The OPD engaged; stop filling and verify weight.;All exchange cylinders must be OPD-equipped.


Out-of-Gas Procedure

Mandatory steps after a system loses pressure: verify tank level, perform leak check, inspect regulators and appliances, relight pilots as applicable, and document per code and company policy.

The tech followed out-of-gas procedures before restoring service.;Out-of-gas calls require extra time for safety checks.;Documentation of the leak check is part of the procedure.


Pre-Buy Program

Customers prepay for a set number of gallons at a fixed price for future delivery, often before heating season. Dealer manages supply and price risk accordingly.

She prepaid 600 gallons at 2.79 under the pre-buy.;Pre-buy contracts include a use-by date and terms.;We hedge pre-buy gallons with supplier contracts.


Price Cap Program

A retail offering where the customer pays a fee or premium for a maximum price ceiling but benefits if market prices fall. Typically hedged with call options.

The cap is set at 3.49 with a 25-cent premium.;Option premiums are built into the cap program price.;Customers like the downside protection of a cap.


Pressure Regulator (First-Stage/Second-Stage)

Devices that reduce tank pressure to appliance pressure. Common residential setup: first-stage regulator at tank to around 10 psig, second-stage at building to about 11 inches water column.

Replace the second-stage regulator and check vent orientation.;The two-stage system stabilized downstream pressure in cold weather.;Verify lock-up and outlet pressure per manufacturer specs.


Rack Price

The posted wholesale price at a terminal rack for distillates and gasoline; a base input to dealer cost along with freight, taxes, and fees.

Rack price jumped 12 cents overnight.;Our cost-plus contract is indexed to the rack.;Basis differences between racks affect delivered cost.


Remote Tank Monitoring (Telemetry)

IoT devices that report tank level, temperature, and usage via cellular or satellite. Used to optimize deliveries, right-size drop sizes, and prevent run-outs.

Tank monitors cut emergency runs by 40%.;We target deliveries when monitors show 30–40% level.;Telemetry integrates with dispatch for auto-scheduling.


Safety Data Sheet (SDS)

OSHA-required documentation describing hazards, handling, storage, and emergency measures for fuels and chemicals handled by the dealer.

Keep SDS for propane and heating oil in every truck.;The auditor checked our SDS binder during the visit.;New additives were added to the SDS library.


Service Contract

A paid plan covering annual tune-ups, safety checks, and certain repairs or parts for heating equipment. Increases uptime and customer retention.

The gold service contract includes a yearly tune-up.;Contracts reduce no-heat calls during peak season.;We upsold a service plan at the tank set.


Tank Chart

Reference tables or apps converting tank measurements (float gauge percent or stick inches) to approximate gallons for various tank sizes and orientations.

Use the 500-gallon horizontal tank chart to convert inches to gallons.;The tech verified gallons against the chart after sticking the tank.;Tank charts help plan drop sizes on will-call accounts.


Temperature Compensation (ATC)

Adjusting measured volume to a standard temperature of 60 F to account for thermal expansion or contraction. Implemented via ATC meters or back-office calculations.

The propane meter is equipped with ATC to bill at 60 F.;Inventory is reconciled in net gallons with temperature correction.;Some jurisdictions mandate ATC for certain products.


Will-Call

A delivery model in which customers request deliveries as needed rather than on an automatic schedule. Often involves minimum order sizes and longer lead times.

Will-call customers must order before the tank reaches 30%.;We charge a premium for same-day will-call deliveries.;Converting will-call accounts to auto-delivery reduced run-outs.


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