What is propane?
Propane is a three-carbon hydrocarbon (chemical formula C₃H₈) belonging to the liquefied petroleum gas family. It is a by-product, not a primary product: roughly two-thirds of US propane comes from natural-gas processing and one-third from crude oil refining. At ambient temperature and atmospheric pressure it is a gas; under modest pressure (~120 psi at 70°F) it liquefies, which makes it efficient to store and transport in steel cylinders and tanks.
A gallon of liquid propane contains roughly 91,500 BTU of energy. By comparison, a cubic foot of natural gas contains about 1,030 BTU, and a gallon of heating oil about 138,500 BTU. Propane sits in the middle of the residential fuel hierarchy in energy density, which explains why it dominates where natural-gas pipelines don't reach but never replaces fuel oil for very-cold-climate whole-home heating in the same way oil does in the Northeast. For deeper dives, see what propane is and the related what LP gas is.
Who uses propane, and for what?
Roughly 12 million US households use propane in some capacity, with about 5 million relying on it as their primary heating fuel. Propane's role splits across cleanly identifiable use cases:
- Space heating — dominant in rural homes, manufactured housing and mountain communities off the natural-gas grid.
- Water heating — standalone or paired with space heat in combi/hydronic systems.
- Cooking — propane ranges with the same instant-flame control as natural gas (different orifice size and pressure).
- Clothes drying — about 10% of US dryers run on gas; propane in non-NG areas.
- Backup generators — propane's long shelf life beats gasoline; common pairing with Generac, Kohler and Briggs & Stratton standby units.
- Outdoor living — grills, patio heaters, fire pits, pool heaters.
- Agriculture and commercial — crop drying, livestock buildings, forklifts (the dominant fuel for indoor industrial forklifts), school buses, food trucks.
A breakdown of usage profiles by household type is in who uses propane, and for the underlying logic of "why pick propane in the first place," see why use propane.
How propane is priced
US propane is sold by the gallon at retail. National residential prices typically run between $2.40 and $3.20 per gallon during the October–March heating season, with significant regional variation. Unlike natural gas, propane retail prices are not utility-regulated — dealers set their own rates in a competitive market.
The authoritative US public price source is the EIA Weekly Heating Oil and Propane Survey, published every Monday during the heating season. For the current snapshot, see current US propane prices. To turn a per-gallon quote into an annual budget, see how much does propane cost and the deeper breakdown of what affects propane prices.
Propane vs natural gas vs electricity vs oil
Whether propane is the right fuel for your home usually comes down to what alternatives are available at your address. The trade-offs in plain terms:
| Fuel | Where it works | Key trade-off |
|---|---|---|
| Propane (LPG) | Anywhere a truck can deliver | Customer-side tank, price set by dealer market |
| Natural gas | Inside utility distribution territory only | Cheapest BTU; utility-regulated; not available rural |
| Heating oil | Northeast, parts of Midwest | Highest BTU/gallon; soot, fuel-oil-only equipment |
| Electric resistance / heat pump | Anywhere on the grid | Resistance is expensive; modern cold-climate heat pumps now compete with propane |
For the full comparisons see propane vs natural gas and propane vs electricity. The short version: natural gas wins on price wherever it's piped; heat pumps increasingly win on operating cost (and IRA tax credits) for moderate climates; propane wins on availability and remains the default off-pipeline fuel in cold rural America.
Propane safety in plain terms
Propane is non-toxic by inhalation and biologically inert — but it is highly flammable. A leaked propane cloud at the right air mix can ignite explosively. The US safety framework around it is mature: the master code is NFPA 58 (Liquefied Petroleum Gas Code), adopted by reference in nearly every state. State Fire Marshals enforce it, US DOT regulates cylinder construction and transport, OSHA regulates workplace handling.
Three things to know as a customer: propane is odorized with ethyl mercaptan so leaks are detectable by smell; the tank is filled to 80% to leave space for thermal expansion; and after any complete run-out, NFPA 58 requires a licensed technician to pressure-test and relight your system before service resumes. See the full safety cluster, especially leak detection and response.
Going further
The basics cluster is the entry point. From here, move to the cluster that matches your immediate question:
- Prices — current rates, contracts, what drives the per-gallon quote
- Companies — AmeriGas, Suburban Propane, Ferrellgas, regional dealers
- Tanks & delivery — sizing, leasing vs buying, auto-fill vs will-call
- Safety — NFPA 58 essentials, leak detection, emergencies
- Installation — distance rules, permits, costs
- States — local market notes for all 50 US states