Propane Prices - What Influences Costs

Propane prices appear to be clear, but really, it is not. Purchasers who want to enjoy propane's affordable and clean energy actually pay more for more than just the propane itself and other factors into the overall price. 

Learn about the different factors that affect the price of propane in this article. And find out if you could actually save more on propane in this article.

Calculate Propane Prices per Gallon

It seems that getting the exact cost of propane is just simple mathematics. Still, there are actually a lot of factors that play into the pricing. Demand, transportation costs, weather and production volume are just some factors that play a big part in propane pricing. 

Natural Gas Prices

During the refining process of crude oil and natural gas, gases are left behind, and that is how propane is produced. In the United States, about 70 percent of propane comes from natural gas. This is why the price of natural gas can affect the cost of propane. 

Competitors of propane use crude oil by-products, so the price of crude oil plays a significant role in propane cost.

Supply and Demand

Just like any other fuel, the demand for propane can directly affect the cost of propane tanks. This factor is spread out across the country, which means if there is a massive demand in the midwest, the northeast's propane prices will also increase even if there is no high demand in the northeast. If there is a low demand for propane, then it could also result to lower prices. 

As a propane user, it is a good practice to pay attention to the ups and downs of supply and demand so you can monitor the propane prices well.

Weather

Since propane is commonly used as cooling and heating fuel in many homes, the weather can directly affect the prices nationwide because it is a big part of supply and demand. Cold weather in the north can increase the demand for propane, so most likely, it will affect the demand for propane in warmer parts of the country. Prone suppliers try to keep the price at a base level to accommodate the fluctuations in prices. However, there are still unexpected factors that can change propane prices.

Proximity of Supply

The most extensive propane storage facilities in the United States can be found in Texas and Kansas. So if you live close to these places, you most likely get propane for lower prices compared to people who live from the storage hubs. 

Propane gas is trucked and transported to a local hub in specialized tankers. This is why longer distances can lead to increased transportation costs. The distance between regional storage hubs and delivery location can also affect the cost of propane. 

The demand for propane in the northern parts of the country is higher because it is colder, making the propane more expensive. 

Production and Export

As we have mentioned above, propane is a by-product of natural gas and crude oil. This is why the amount of propane that can be manufactured is limited by the amount of natural gas processed and the amount of crude oil refined. Reduction in the volume of crude oil and natural gas can reduce the amount of propane produced, which can cause the price increase of crude oil. 

Exportation of propane to other countries can also affect the supply and cost of propane.

Other Costs of Propane Production

While propane's price per gallon is a lot cheaper than the cost of other fuels, there are still other factors to check when considering whether to switch to propane. In most cases, the propane company will give you a free tank as long as you use it for maintenance and supply. But some companies charge a leasing fee every month. These costs depend on the size of the tank and can vary regionally. 

Here are some of the most common additional costs you need to take into consideration:

  • Site preparation
  • Installation of the tank
  • Meter installation
  • Line setting and trenching
  • Permits

Final Words

It will all boil down to one question: Do you really need propane? Propane is a versatile fuel. You can use it to fuel stoves, furnaces, ovens, water heaters and dryers. It is an excellent option for people who do not have a connection to municipal natural gas lines. Propane can also be used to fuel light-duty fleet and heavy-duty vehicles because it is clean-burning.

Top 10 Propane prices and Propane prices websites as ranked by people like you

The Community ranked the best Propane prices websites so that you can find what you need. Help improve the ranking by voting too.

Last updated: 2024-12-23

Rank

Provider

Description & Features

Site

1

509

Residential Propane Weekly Heating Oil and Propane Prices ...
Residential Propane Weekly Heating Oil and Propane Prices ...
Notes: Weekly heating oil and propane prices are only collected during the heating season which extends from October through March. Due to updated weighting methodology, national and regional residential heating oil and propane prices from October 2009 to March 2013 have been revised since they were first published.

2

472

Average Propane Prices - NYSERDA
Average Propane Prices - NYSERDA
Energy price inquiries should be addressed to Matt Milford at matthew.milford@nyserda.ny.gov, or 518-862-1090, ext. 3416 Propane Prices: What Consumers Should Know Propane Prices: Frequently Asked Questions

3

437

Residential Propane Price Survey
Residential Propane Price Survey
Using our online propane price database is fast, easy and FREE! To access additional information regarding each entry shown below (propane tank owner, supplier delivery fee (if applicable), propane pricing plan applicable to each subject delivery), access the hyperlink in the left column.

4

404

Propane - Daily Price - Commodity Prices - Price Charts ...
Propane - Daily Price - Commodity Prices - Price Charts ...
Monthly price chart and freely downloadable data for Propane. Price in US Dollars per Gallon. 6 month history.

5

374

AmeriGas Propane | Fees and Rates
AmeriGas Propane | Fees and Rates
Pre-Buy** - This is a program that enables the customer to lock-in the propane price in advance for the customer's projected winter/annual usage. SmartPay Budget Plan** - This is an optional program that allows you to make convenient monthly payments based on your projected annual usage and current market price.

6

347

US Residential Propane Price - YCharts
US Residential Propane Price - YCharts
US Residential Propane Price measures the price in USD per gallon of propane. This indicator is important to track because of its significance to consumers who use propane for uses like heating. Historically, propane prices peaked in the winter of 2014, when the per gallon cost reached as high as 4.01.

7

321

Prices | Find the best propane deal for your home
Prices | Find the best propane deal for your home
Propane prices are affected by the price of crude oil since it is a byproduct of crude oil production. They also fluctuate with supply and demand like other unregulated commodities. At consumer level, propane prices depend on usage (higher usage usually warrants lower prices), ...

8

297

Propane | 2019 | Data | Chart | Calendar | Forecast | News
Propane | 2019 | Data | Chart | Calendar | Forecast | News
Our market prices are intended to provide you with a reference only, rather than as a basis for making trading decisions. Trading Economics does not verify any data and disclaims any obligation to do so. This page provides - Propane- actual values, historical data, forecast, chart, statistics, economic calendar and news.

9

275

Massachusetts Retail Propane Prices | Mass.gov
Massachusetts Retail Propane Prices | Mass.gov
As part of U.S. EIA State Heating Oil & Propane Program, DOER conducts weekly telephone surveys of heating oil and propane dealers and posts the average retail price. Prices aggregated from Massachusetts Department of Energy Resources telephone surveys of propane dealers who service Massachusetts ...

10

255

Propane Delivery at Lowest Prices | Thrifty Propane
Propane Delivery at Lowest Prices | Thrifty Propane
PROPANE DELIVERIES AND YOU. Thrifty Propane is a Will Call propane supplier. This means that when you become a customer of Thrifty Propane, you save on propane prices, you have no contracts and you can purchase a tank at a reasonable price.

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