US propane market structure
Around 3,000 retail propane marketers operate across the United States. The top three nationals — AmeriGas, Suburban Propane and Ferrellgas — together serve approximately 25–30% of the residential market. The remaining 70–75% is split between regional operators (multi-state but not national), state-level family businesses, and farmer-owned cooperatives. The level of fragmentation in propane retail is far higher than in natural gas or electricity, where utility regulation concentrates supply under a small number of regulated providers.
For practical purposes, almost any US residential address has at least two or three of these tiers represented in the local market. The shopping framework laid out on how to select a propane company assumes you can get quotes from one national, one regional and one local independent — that is realistic across most of the country.
National propane retailers
Three US propane retailers operate true national networks across 40+ states. They are the safe default for any residential propane account and the right starting point for any quote comparison.
| Company | Customers | States | Parent / structure |
|---|---|---|---|
| AmeriGas | ~1.4 million | All 50 states | UGI Corp (NYSE: UGI) |
| Suburban Propane | ~1 million | 41 states | Suburban Propane Partners (NYSE: SPH) |
| Ferrellgas | ~700,000 | Most states | Ferrellgas Partners (OTC: FGPR); owns Blue Rhino |
Major regional propane retailers
Regional operators usually beat the nationals on local service quality and sometimes on price. Each has a defined service territory rather than national coverage:
| Company | Headquarters | Territory |
|---|---|---|
| Blossman Gas | Ocean Springs, MS | Southeast / Mid-Atlantic (~17 states) |
| ThompsonGas | Frederick, MD | Southeast / Mid-Atlantic / Midwest (~30 states) |
| Superior Plus Propane | Toronto (parent) | Northeast / Mid-Atlantic / Midwest |
| Paraco Gas | Rye Brook, NY | Northeast + FL (7 states) |
| United Propane Gas | Paducah, KY | Southeast / Midwest (~10-12 states) |
| Pinnacle Propane | Plano, TX | South-Central (~9 states) |
| Lakes Gas | Forest Lake, MN | Upper Midwest (6 states) |
Farmer cooperatives
Two large farmer-owned cooperatives operate substantial propane retail businesses. Both serve agricultural and residential customers and offer member patronage dividends — annual returns based on purchase volume — that reduce the effective per-gallon cost for member accounts. Cooperative pricing is often the strongest pick for high-volume agricultural customers in covered territory.
- Cenex (CHS) — Inver Grove Heights, MN. The energy brand of CHS Inc., largest US farmer cooperative. Upper Midwest / Plains / Mountain West (~22 states).
- MFA Oil — Columbia, MO. Midwest farmer cooperative (~7 states: MO, AR, OK, KS, IL, IN, IA).
Cylinder exchange networks
For grill cylinders and small-cylinder customers (RV, food truck, patio heating), two networks dominate US cylinder exchange:
- Blue Rhino — owned by Ferrellgas. The largest US grill-cylinder exchange brand, with ~60,000 retail locations (Home Depot, Lowe's, Walmart, supermarkets, gas stations).
- AmeriGas Cylinder Exchange — the major competitor to Blue Rhino, sold at similar retail outlets.
- Cool Blue — operated by Paraco Gas in the Northeast.
Standard cylinder is a 20 lb grill tank, typically refilled to ~15 lb (about 3.5 gallons) for retail handling. Customers refilling their own cylinders at a propane retailer (rather than exchanging) generally pay less per pound.
Specialty and industrial
A handful of US propane-related companies focus on commercial, industrial or specialty markets rather than residential heating. The most prominent is Matheson, a major US industrial and specialty gas supplier with minimal residential propane activity — homeowners researching Matheson for home heating should generally look elsewhere.
State propane associations
Most US states have a state propane gas association — the local arm of the National Propane Gas Association (NPGA). State associations coordinate training under the PERC Certified Employee Training Program (CETP), advocate on state regulatory matters, and maintain directories of member dealers. They are useful starting points if you want to verify that a prospective dealer is in good standing. See propane gas associations for the full state-by-state list.
Finding local independents
The 3,000-marketer long tail of US propane retail is not realistically representable on any single page. The best way to find local independents for your address:
- State propane association directories — the most reliable source. See propane gas associations.
- Your state page on PropaneDeal — see all 50 state pages for market notes including dominant local operators.
- Word of mouth. Neighbours, your county Cooperative Extension office, local farm-supply stores.
- Google search for "propane delivery [your county]" — read the local reviews for each result.