|
Why Level Propane?
Level Propane’s business model was seen as hostile to the petroleum refining industry, among the most favored customers the large banks, because Level was centralized and depended on the Texas Eastern Pipeline for its product, HD5 propane, rather than purchasing byproduct directly from the Northern refineries. The sale of byproduct to market as home heat fuel created an additional profit center for the refineries, while providing the marketers who purchased the product inexpensive fuel to sell at full retail prices. The product was of variable quality, however, and often burned fast and cool. The product marketed by Level, of consistent quality and competitive price, challenged the dominance of the other marketers, and the profitability of both these marketers and the refineries that sold them this variable and unregulated byproduct.
|
