Compare propane prices (2024)

When moving into a home that uses propane for energy it can be bewildering to discover how much prices offered by propane companies can vary. Overall, it is important to know that propane is measured by the gallon and priced per gallon. The 2011-2012 winter season saw average propane prices vary between $2.74 and $2.88 per gallon. This makes a 500-gallon tank cost between $1,100 and $1,150 to fill. The US Energy Information Administration puts the average American propane consumption 464 gallons or $1,325 per year at December 2011 prices.

What to look for when you compare propane prices

All this means is that when shopping around for a propane company and comparing propane prices between suppliers, you should not stop at the propane price per gallon but compare the various elements that can be included in – or excluded from – your propane supply agreement. Here are the basic categories to assist you in this task:

Prices

What is the propane price per gallon?

Are there any initial discounts?

What does the propane price include?

What fees and charges apply?

What pricing and delivery options exist?

Safety

Does the company offer an appliance systems check?

What is the company’s safety record in responding to emergencies?

Is there are 24/7 safety helpline you can call?

Customer service

Have any complaints been lodged with the Attorney General’s office?

How close is the company’s nearest outlet?

What maintenance options does the company offer?

A very basic comparison between the United States’ three largest propane companies (Amerigas, Ferrellgas and Suburban Propane) gives you the average price per gallon of propane sold for each of them in 2011:

Ferrellgas

2.030 $/gal

Amerigas

2.486 $/gal

Suburban Propane

3.117 $/gal

Source: 2011 company annual reports

However, this is but an average for average retail price. In practice, depending on various factors and how good a deal you have found, propane prices per gallon can vary by several dollars in the same area. This is why it is crucial to identify the services you require and get quotes from several companies to allow you to compare prices for your situation.

Propanedeal.com enquired as to the propane prices of these three companies for a large home in Ohio (which is relatively close to the US avergae in terms of pricing)using propane as a primary source of energy. For a first fill, this placed Ferrellgas (1.499 dollars per gallon) ahead of Amerigas (1.699 dollars per gallon) and Suburban Propane (1.799 dollars per gallon). For the next fill, however, Amerigas offered cheaper prices (2.099 dollars per gallon), ahead of Ferrellgas (2.370 dollars per gallon) and Suburban Propane (2.599 dollars per gallon).

Factors affecting residential propane prices

1 First, residential propane prices are dependent on crude oil prices since propane is a byproduct of natural gas and crude oil reprocessing.

2 Second, propane prices depend on propane spot prices: like many commodities, propane is traded on global markets and spot prices go up and down according to supply and demand.

3 Third, residential propane prices are affected by consumer supply and demand and prices will increase at times when people use more propane, like in winter.

4 Fourth, the price you pay for propane will be higher if you live further from one of the major supply sources (the Gulf Coast and the Midwest).

Compare propane prices (1)
Source: US EIA

Factors included in the price propane companies offer

When offering customers a propane supply agreement, propane companies take several other factors into account. When comparing quotes from propane companies, look out for the various fees a company may charge for delivery, maintenance, administrative costs, etc. These services cost between $5 and $100 per item. For example, Amerigas, one of the largest propane companies in the United States, may include and charge for items such as fuel recovery, HazMat and safety compliance, late payment, propane pump-out, special trips, using the company meter of dispatching a technician in its offer.

Often, propane companies also offer discounts to new customers, which you should look out for too. For example, you may be offered some free propane to begin with (between 50 and 100 gallons) or propane at a discounted price (50 cents per gallon, on average). A propane company may also reward your paying your bill quickly by reducing the price per gallon by between 5 and 50 cents or your referring other customers to them (free amount of propane or a credit on your account).

Compare propane prices (2024)

FAQs

What are the latest propane prices? ›

US Residential Propane Price (I:USRPP)

US Residential Propane Price is at a current level of 2.412, down from 2.475 last week and down from 2.671 one year ago. This is a change of -2.55% from last week and -9.70% from one year ago.

How much is propane a gallon in NJ? ›

Basic Info. New Jersey Residential Propane Price is at a current level of 3.232, down from 3.267 last week and down from 3.247 one year ago. This is a change of -1.07% from last week and -0.46% from one year ago.

What month is propane usually the cheapest? ›

Conversely, during the summer months, demand for propane decreases as people do not require as much propane for heating purposes. This decrease in demand leads to lower prices for propane, making summer often the best economical time to buy propane.

Why is propane getting so expensive? ›

Wholesale propane prices have increased because of high international demand and low global propane supply. The U.S. propane market has tightened because of the increase in exports, and wholesale U.S. propane prices have risen in line with wholesale propane prices in overseas markets.

Is propane cheaper than electricity? ›

According to the U.S. Department of Energy, heating a home with propane has cost far less than heating with electricity. Over time, propane water heaters can cost one-third less to operate and recover water twice as quickly as electric water heaters – saving you money!

How much is 500 gallons of propane? ›

So a 500-gallon tank only holds 400 gallons. Propane is like gas—prices vary by location and change daily. The current national average of propane is $2.337 per gallon, meaning it costs about $940 to fill up a 500-gallon tank.

How much propane should I buy? ›

Propane Gas Furnace (Annual Usage)
Home Square FootageAnnual Propane Usage
1,000 square feet441 gallons annually
1,500 square feet666 gallons annually
2,000 square feet888 gallons annually
3,000+ square feet1,300+ gallons
Sep 9, 2021

How much propane is a gallon? ›

Secondly, you should know the capacity of the propane tank in gallons. Thirdly, you need to know that one gallon of propane weighs 4.2 pounds. Multiply the number of gallons the tank can hold by 4.2. That will tell you the weight of the propane when the tank is full.

What are NJ gas prices today? ›

New Jersey average gas prices
RegularPremium
Current Avg.$3.368$4.196
Yesterday Avg.$3.369$4.198
Week Ago Avg.$3.384$4.206
Month Ago Avg.$3.507$4.318
1 more row

Is it worth buying your own propane tank? ›

Advantages of Owning

This means you can shop around for the best propane price available whenever you need a refill. In addition, you can consume as little (or as much) propane as you need – with no minimum consumption rates. You may also save money over the long run by eliminating rental payments each month.

What month is the best time to buy propane? ›

Propane prices can also spike in the summer months, when people jump in their campers and RVs for summer vacation and camping. Early fall is a “shoulder” season between these periods of peak demand – meaning it's often the best time to save money on your propane tank refills.

What time of year is the cheapest to fill a propane tank? ›

It's all about supply and demand. During the summer months, the demand for propane is significantly lower, leading to reduced costs. With a decreased demand, there is a surplus of propane supply, enabling suppliers to lower prices. The opposite holds true in winter.

Will propane prices go down in 2024 in the USA? ›

According to Procurement Resource, in 2024, U.S. propane prices continue to fall, extending the downtrend observed in 2023, despite rising crude prices.

How many gallons of propane are in a 20 lb tank? ›

20 lb Propane Tank

Uses: Commonly used for resale and with propane grills, generators, patio heaters, and other outdoor equipment. 20 pound propane tanks are often referred to as grill cylinders and hold 4.6 gallons of propane when full.

Is there a propane shortage? ›

With Propane Supply at Record Highs, Exports & Supply Disruptions Remain Concerns for 2023-2024. As 2023 reached the midyear point, there were 81.1 million barrels (MMbbld) of propane in United States inventory, up a full 47.7% from a year ago.

How much is a gallon of propane in CA? ›

$2.65 Per Gallon

100 gallon minimum depending on your location.

How much is propane per gallon in Ohio right now? ›

Ohio Residential Propane Price is at a current level of 2.444, down from 2.545 last week and down from 2.701 one year ago. This is a change of -3.97% from last week and -9.51% from one year ago.

How much is propane per gallon in NY? ›

New York Residential Propane Price is at a current level of 3.401, up from 3.368 last week and up from 3.361 one year ago. This is a change of 0.98% from last week and 1.19% from one year ago.

How much is propane per gallon in PA? ›

Pennsylvania Residential Propane Price is at a current level of 2.808, down from 2.829 last week and down from 2.922 one year ago. This is a change of -0.74% from last week and -3.90% from one year ago.

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