Typical US per-gallon price band
Across the EIA Weekly Heating Oil and Propane Survey, US residential propane during the heating season runs in a band of roughly \$2.40 to \$3.20 per gallon. Regional spread within the same week often exceeds \$1.00/gal — Gulf Coast PADD III prices lowest, Northeast PADD I prices highest.
What's actually in the per-gallon price
The retail per-gallon price is built up from:
- Mont Belvieu wholesale spot (~$1.00–$1.50/gal in 2026)
- Transport from terminal to local depot (~$0.10–$0.30/gal)
- Local depot operations and storage (~$0.20–$0.40/gal)
- Truck delivery to customer (~$0.30–$0.60/gal)
- Service, billing, margin and customer service (~$0.40–$0.70/gal)
The retail markup over wholesale typically lands at \$1.50–\$2.00 per gallon.
Volume tiers
Most dealers offer better per-gallon rates at larger fills. Typical tiering (rough orders of magnitude):
- 100-gallon top-off: rack rate, often \$0.30–\$0.60/gal above standard
- 300-gallon fill: standard rate
- 500–700 gallons: often \$0.10–\$0.20/gal below standard
- 1,000+ gallons: negotiable; the best rates in any market
Customer-owned vs leased tank
Customer-owned tanks unlock shop-around freedom that leased tanks don't. The same dealer quoting both may price the customer-owned account \$0.10–\$0.30/gal lower than the leased equivalent, because the customer can take the next fill to a competitor. See buying or renting a tank.
FAQ
Is propane sold by the gallon or by weight?
Bulk residential propane: by the gallon. Cylinder propane (grill tanks, RV tanks): typically by the pound at exchange points, by the gallon at refill stations. 1 gallon liquid propane = 4.24 lb.
Are propane prices regulated?
No. Unlike natural gas distribution, US residential propane retail is not utility-regulated. Dealers set their own per-gallon rates in a competitive market.