Understanding Propane Costs
Typical Propane Usage
| Appliance |
Typical Usage |
Annual Cost |
| Home Heating (2000 sq ft) |
600-1,000 gallons/year |
$1,650 - $2,750 |
| Water Heater (family of 4) |
200-300 gallons/year |
$550 - $825 |
| Cooking Range |
35-60 gallons/year |
$96 - $165 |
| Clothes Dryer |
20-30 gallons/year |
$55 - $83 |
| Fireplace (occasional use) |
50-100 gallons/year |
$138 - $275 |
Propane Tank Sizes & Uses
- 20 lb (4.7 gallon): BBQ grills, portable heaters, camping
- 100 gallon: Portable tanks for temporary heating, construction sites
- 250 gallon: Small homes, supplemental heating, cabins
- 500 gallon: Standard residential tank (most common)
- 1,000 gallon: Large homes, whole-house heating + appliances
Safety Note: Propane tanks are typically filled to only 80% capacity to allow for expansion. A 500-gallon tank holds a maximum of 400 gallons of usable propane.
Ways to Save on Propane
- Pre-buy programs: Lock in prices before winter (often $0.20-0.50/gal savings)
- Budget plans: Spread annual costs over 12 months with fixed payments
- Tank ownership: Own your tank vs. leasing (saves $50-150/year in fees)
- Shop multiple suppliers: Prices vary widely—compare at least 3 local vendors
- Buy in summer: Propane is typically 10-20% cheaper in warm months
- Upgrade efficiency: High-efficiency furnaces (95%+) use 15-25% less propane
- Improve insulation: Better insulation can cut heating costs by 20-30%
Propane vs Natural Gas vs Oil
| Factor |
Propane |
Natural Gas |
Heating Oil |
| Typical Cost per Therm |
$3.00 - $3.60 |
$1.00 - $1.50 |
$2.50 - $3.50 |
| Availability |
Everywhere (delivered) |
Requires pipeline |
Everywhere (delivered) |
| Storage |
On-site tank required |
No storage needed |
On-site tank required |
| Efficiency |
91,500 BTU/gal |
100,000 BTU/therm |
138,500 BTU/gal |
| Cleanliness |
Very clean burning |
Cleanest |
Less clean (soot) |
Regional Price Variations
Propane prices vary significantly by region and season:
- Midwest: $2.25 - $3.00/gal (closer to refineries, high demand in winter)
- Northeast: $2.75 - $3.75/gal (higher transport costs, cold climate)
- South: $2.00 - $2.75/gal (lower demand, easier logistics)
- West Coast: $2.50 - $3.50/gal (varied by state regulations)
- Rural areas: Add $0.20-0.50/gal for delivery to remote locations
When to Order Propane
- Don't wait until empty: Order when tank reaches 20-30% to avoid emergency fees
- Emergency delivery: Can cost $50-150 extra in surcharges
- Winter spikes: Prices can jump 30-50% during cold snaps or supply shortages
- Monitor usage: 2000 sq ft home typically uses 50-100 gallons/month in winter
Budget Tip: Average household propane costs run $1,500-3,500 per year depending on climate and usage. Budget $200-400/month during winter months if heating with propane.
Propane Safety & Maintenance
- Install propane detectors near appliances (propane is heavier than air, sinks to floor)
- Inspect tanks annually for rust, dents, or leaks
- Keep tank area clear of debris and vegetation
- Never store propane tanks indoors or in enclosed spaces
- Service furnaces annually to maintain efficiency and safety
- Know where your shut-off valve is located
Frequently Asked Questions
How long does a tank of propane last?
A 500-gallon tank (400 usable gallons) typically lasts 4-6 months for whole-house heating in moderate climates, or 2-3 months in cold climates. For water heater only, it can last 18-24 months.
Should I own or lease my propane tank?
Owning eliminates annual lease fees ($50-150/year) and gives you freedom to switch suppliers. However, you're responsible for maintenance. Leasing often includes free maintenance but locks you to one supplier.
Can I switch propane suppliers?
Yes, if you own your tank. Leased tanks belong to the supplier—you'd need to buy your own tank or lease from the new supplier. Always compare total costs including tank rental fees.
What is the 80% rule for propane tanks?
Propane expands when heated, so tanks must have room for expansion. By law, tanks can only be filled to 80% of total capacity. A 500-gallon tank holds a maximum of 400 gallons.
Is propane more expensive than natural gas?
Yes, typically 2-3x more expensive per BTU. However, propane is available anywhere (doesn't require pipeline infrastructure), making it the best option for rural homes without natural gas access.
How can I tell how much propane is left in my tank?
Most tanks have a gauge showing percentage full. You can also pour warm water down the side—the tank will be cool below the propane level. For accuracy, suppliers can measure during delivery.
What affects my propane usage?
Home size, insulation quality, furnace efficiency, thermostat settings, climate zone, number of propane appliances, and weather severity all impact consumption. A poorly insulated home can use 50% more propane.