Per-gallon price
The EIA Weekly Heating Oil and Propane Survey is the authoritative source for US residential propane prices. Heading into 2026, the national heating-season average runs in the $2.40–$3.20 per gallon range, with PADD regional variation. See current US propane prices for the live picture.
Annual cost by usage profile
- Cooking + water heating only (~250 gallons/yr): ~$600–$800/year
- Moderate-climate heating household (~1,000 gallons/yr): ~$2,400–$3,200/year
- Cold-climate heating household (~2,000 gallons/yr): ~$4,800–$6,400/year
- Very cold climate, large home (~2,500+ gallons/yr): $6,000+/year
Other line items beyond the gallon rate
- Tank rent (leased tanks): $50–$150/year, often waived above minimum annual purchase
- Delivery / hazmat surcharge: $5–$25 per delivery × 2–4 deliveries/year
- Service-call rate: $75–$200 for maintenance and repairs
- Annual inspection: free in most dealer service plans
Comparing propane to alternatives
On a cost-per-million-BTU basis at 2026 typical US prices:
- Natural gas at $1.20/therm: ~$12 per million BTU (cheapest)
- Heating oil at $4.00/gallon: ~$29 per million BTU
- Propane at $2.80/gallon: ~$31 per million BTU
- Electricity at $0.15/kWh (resistance): ~$44 per million BTU
- Heat pump at $0.15/kWh (COP 3): ~$15 per million BTU (varies with cold-climate performance)
Natural gas is consistently cheapest where available; heat pumps compete with propane in moderate climates and benefit from federal/state tax credits.
FAQ
Why is my propane bill higher than expected?
Common reasons: colder-than-average winter, aging appliance running longer, thermostat creep, leased tank without volume waiver. Compare your gallon rate against the EIA WHOPS regional average — if it's well above, consider switching dealers.
How can I reduce my propane bill?
Three highest-leverage levers: shop dealers (3-quote comparison, see how to select a propane company); pre-buy in summer at locked rates; own your tank if you burn 1,000+ gallons/year to unlock shop-around freedom.