How much does propane cost?
Propane costs approximately $2.60 per gallon, according to the U.S. Energy Information Administration. Propane refill costs can range from around $3.89 per gallon, according to the Tractor Supply Co. Meanwhile, propane tank exchange prices may range from $20-$25 for a 20-pound propane tank, according to Ferrell Gas.
Propane prices:
|
Propane cost |
$2.60 per gallon |
|
Propane refill cost |
$3.89 per gallon |
|
Propane tank exchange cost |
$20-$25 for a 20-pound propane tank |
Sources: Ferrell Gas, Tractor Supply Co, U.S. Energy Information Administration
Propane prices are constantly fluctuating due to many factors. And if you’re considering switching to propane, you’ll need to consider the cost of the actual propane tank — and the cost to hire a pro to install it.
Keep reading to learn more about the cost of propane and important factors every homeowner needs to consider.
Propane is a gas that is liquefied and stored in tanks. It's most commonly used as an energy source for cooking and heating, but it also has a wide range of industrial applications. Propane is also sometimes called LPG (liquified petroleum gas).
There are many reasons homeowners choose to use propane over other energy sources. The main benefits: it's clean, reliable and affordable. Propane can be used to power different areas in and outside your home, including:
- Boilers
- Clothes dryers
- Hybrid heating systems
- Fireplaces
- Flame lighting
- Furnaces
- Grills
- Outdoor fire pits
- Outdoor kitchens
- Ovens and ranges
- Patio heaters
- Pool and spa heaters
- Stoves
- Water heaters (tankless and storage)
Propane needs to be stored in a tank. There are a few ways to go about acquiring a tank, and tanks come in a wide range of sizes. The tank’s size and the installation method you decide will influence the cost of your propane tank.
Below are cost examples of propane tank costs (by the gallon and pound) from several suppliers:
Small propane tank prices
Small propane tanks are usually used for barbecue grills, household heating, water heating and cooking. Twenty-pound and 100-pound tanks are the most common for household use.
An empty 20-pound propane tank costs around $35, while a 100-pound tank costs around $120.
Large propane tank prices
There are also much larger tanks available. If you're considering buying a large propane tank, expect a much higher cost as well.
For example, a 500-gallon tank will cost between $1,100-$2,400, while a 1,000-gallon tank will set you back $2,000-$4,000. The estimated price to install a 1,000-gallon propane tank underground with valves is around $4,000 (including materials and labor).
Consumer-grade propane costs approximately $2-$3 per gallon, according to residential propane price data from the U.S. Energy Information Association.
The cost to refill your propane tank depends on your location and the retailer. For example, some suppliers may charge around $3-$4 per gallon for propane tank refills. Other providers may charge less than $2 per gallon.
Keep in mind propane tanks are never filled right to the top. Technically, a 20-pound tank can hold 5 gallons, but it will only be filled to 80% of its capacity (4 gallons). This is done for safety reasons.
Here is a list of other factors to consider when you're estimating the cost to install a propane tank, refill your tank and/or exchange your tank:
- Site survey fees
- Site preparation and excavation
- Installation and setup fees
- Meter fees
- Permit fees
- Fittings and piping
- Supply and demand
- How much propane you consume
- Transportation costs and distance to the customer
- Crude oil and natural gas prices
- Underground or vs. above-ground installation
These cost factors will not apply to every project. Talk to your propane supplier or retailer to get a more accurate idea of how much propane costs near you.
Buying a large propane tank might be too big of an expense for some homeowners. For this reason, they may choose to rent a propane tank to save money. There are pros and cons with each option, and it's worth carefully looking at all the details before you decide.
For example, renting a tank means you don't have to worry about maintenance or repairs. Those tasks are the propane supplier’s responsibility. However, renting a tank also means you’re giving up a lot of control over who can supply your propane.
FAQs
How much is propane per gallon?
Propane costs $2-$5 per gallon.
What time of year is propane cheapest?
Propane is typically the most expensive during the cold winter months, according to the Propane Education and Research Council.
Are propane prices going up or down?
The price of propane is affected by a variety of factors and fluctuates frequently.
When should I buy more propane?
Buy propane when the prices are low. Usually, propane costs less during the warmer months.
How long does a 1,000-gallon propane tank last?
It depends on how much propane you use and how big your home is. It's worth speaking to a professional who works with other homes in your area to get a better idea of what your propane usage might be.
