The Average Propane Heating Cost

Many Americans know propane gas as that little gray tank attached to the patio grill. But if you live in a rural area, chances are you have a large propane tank on your property. This is common for those who live outside of residential electric power grids and natural gas pipelines. Propane, also known as liquified petroleum gas (LPG), is the fuel that keeps these households running all year round. In rural homes, propane is a reliable source for heating air and water, as well as running some appliances such as fireplaces, dryers, and gas stoves.

How much the average household spends on propane in one year varies greatly depending on climate, home size, number of residents, age of appliances, and other factors such as whether or not the home has a heated swimming pool. For example, the National Propane Gas Association estimates that a home in Wyoming might use 928 gallons of propane annually, as compared to just 103 gallons for a home in the much warmer climate of Hawaii. Let's see what that actually comes down to in terms of annual cost.

Similar to the gas we put in our cars, the price per gallon of propane fluctuates wildly based on supply and demand and other factors affecting the global market. Currently, there is plenty of propane available in the U.S. and the average price per gallon is about $2.39. The price of propane tends to peak in the mid-winter months when there is more usage and inventory drops. One particularly cold winter in 2014 caused such a scarcity in propane supplies that the price topped out at just over $4 per gallon.

There are endless scenarios that compare low, average, and high household propane usage based on seasonality and hours of appliance usage per day. There are also many online calculators that can help you zero in on a reasonable usage prediction based on your specific household data. Most of these calculators agree, however, that an average household will spend about $2,000-$3,000 in propane each year assuming usage of 800-1,250 gallons. That breaks down to $165-$200 per month in propane fees at the current price.

If you're a residential propane user, you'll also want to factor in a few other propane-related expenses each year — things such as annual tank maintenance and delivery fees for tank refills. How often you have to refill your tank will depend on how large it is. Residential tanks generally vary from 250 gallons to 1,000 gallons and are sized to accommodate the square footage of home on the property. Going strictly off of nationwide averages, you can reasonably expect to refill your residential propane tank about every five months.