What is the Price of Propane?

September 4, 2019 –

It can be daunting to understand how gas pricing works (not to mention oil pricing).

People are searching for information to help them make the most informed decisions about their energy usage.

Propane is super attractive for a variety of reasons. It’s reliable, portable, and super-efficient, meaning you need less of it to do more.

It’s also environmentally friendly and versatile — you can use propane for everything from grills to home heat and beyond.

There are a number of factors that go into propane price per gallon.

Natural Gas and Crude Oil Pricing

Propane is a byproduct of natural gas and crude oil, 70% of all propane is produced from natural gas. During the refining process of gas and oil, the gases left behind are used to create propane. (This speaks to the eco-friendy nature of propane — it’s made up of what would otherwise be wasted.)

Because of this, natural gasoline prices and the price of crude oil naturally affect the cost of propane.

The Weather

Since propane is used for heating and cooling in many homes and businesses, the weather affects pricing related to supply and demand. Extreme weather in any part of the country can raise the price of propane nationally since it impacts the aforementioned national demand average.

Supply and Demand

The higher the demand, the higher the cost. The demand for propane is determined as the national average instead of being area-specific. For example, even if the demand for propane is high in the west and lower in the east, people in the east will still pay a higher cost than they might if averages were only based on their specific area.

Paying attention to the ups and downs of demand can help you get the lowest propane price possible. If you strike when the demand is low, you can stock up at a good rate — and Paraco even allows you to lock in your rates to stick at that low price for a fixed period.
Export and Production

Because propane is created as a byproduct of natural gas and crude oil, propane’s production is dependent on gas and oil production. So naturally, any increase in gas and oil production will increase propane production, decreasing the price, and any decrease in gas and oil production will decrease propane production, increasing the cost.

The United States also exports propane to other countries, affecting the price.

Market and Transportation Cost

The propane price is affected by how far you live from production and storage hubs. Kansas and Texas are the most significant storage facilities in the United States. All the factors contribute to cost: When it’s heating season due to cold during the winter in the north, demand for propane is higher. That weather can create transportation delays, causing prices to rise.

Luckily, there are ways to take control and save money. Here are some actions to take to keep your overall propane costs down:

– Keep an eye on propane demand through the Energy Info Administration. There may not be a propane price forecast that’s as easy to read as the weather, but keeping an eye on demand is a step in the right direction. The best time to stock up is when propane demand is low.

– Lock in a low rate with a trusted propane supplier like Paraco

– Take advantage of Paraco’s Budget Billing Program, which uses your average home propane use to calculate a consistent monthly charge

And remember that even with fluctuating prices, propane remains one of the most cost-effective energy sources. Since propane is so efficient, it takes less to achieve more, keeping costs down compared to electricity, diesel, and more.

We’re happy to answer your questions. Reach out to our customer support, and we’ll help power your life — affordably.


  1. DJ Stark on November 4, 2019 at 8:46 am

    Do you service catskill 12414

    • Isousa on November 6, 2019 at 8:00 am

      Hello DJ Stark! One of our Customer Service Associates will help you with this or any other questions you might have, please reach out to them by calling 1-800-647-4427 or by email at contactus@paracogas.com

  2. LAIRD E WORSHAM on November 17, 2019 at 1:24 am

    Simple answer what is the price of propane on this date 11/16/2019 ???????

    • lstansfield on November 21, 2019 at 7:05 am

      Hi Laird, Please call us and we will give you the current pricing.

  3. Vivian Black on January 10, 2020 at 7:23 pm

    I love how you talked about demand and how propane prices will fluctuate with the demand in your area. My husband and I are looking to get propane gas for our new home and we need to figure out how to get it delivered. We will keep these tips in mind as we search for a professional that can help us out.

  4. Faylinn on January 22, 2020 at 12:19 pm

    I thought it was very interesting that you mentioned that propane demands could go up if somewhere in the country it is colder, therefore making the price higher everywhere else. One of my sisters told me that she is looking for a propane delivery service, and asked me to help her find the right option. In my opinion, she should look online for options so she can make the right choice.

  5. gasNtools on February 11, 2020 at 12:10 am

    The post was very useful to know different factors that affects the price of propane gas cylinder. Thanks for sharing an useful post.

  6. Franklin White on June 12, 2020 at 1:04 pm

    I had no idea that a company can monitor your propane for you so you can set up schedule for them to deliver the propane. This sounds like a great way to make sure you always have propane. It would be awful if you ran out of propane but your delivery date isn’t for another couple of days.

Leave a Comment