How Much Does Propane Cost Per Gallon in 2026?
Propane prices vary more than most people realize — by region, by season, by whether you're refilling a small grill tank or a whole-home tank, and by whether you're buying at a retail kiosk or through a local dealer. Here's what you can expect to pay in 2026 and how to make sure you're not overpaying.
Average Propane Prices in 2026
| Purchase Type | Typical Price Range | Notes |
|---|---|---|
| 20lb grill tank refill (local dealer) | $15–$25 | Best value for grill tanks |
| 20lb exchange (Blue Rhino, AmeriGas) | $22–$28 | Convenient, slightly higher cost |
| Residential bulk delivery (per gallon) | $2.50–$4.50/gal | Wide range depending on region and supplier |
| Texas average (residential) | $2.60–$3.40/gal | Lower than national avg due to proximity to supply |
| New Mexico average (residential) | $3.00–$4.20/gal | Higher in rural areas with fewer suppliers |
| National average (residential) | $2.80–$3.80/gal | Per EIA data |
Why Propane Prices Fluctuate
Propane is a byproduct of natural gas processing and oil refining, so its price tracks crude oil and natural gas markets. Several factors push prices up or down:
- Crude oil prices — the biggest driver of long-term propane pricing
- Season — prices typically rise in fall and winter as heating demand increases, and drop in spring and summer
- Distance from supply — rural areas pay more due to transportation costs
- Local competition — areas with more dealers tend to have lower prices
- Weather events — a hard freeze or hurricane can spike propane prices regionally within days
- Inventory levels — national propane storage figures (published weekly by the EIA) affect wholesale prices
Refill vs Exchange: What's the Better Deal?
For a 20lb grill tank, refilling at a local propane dealer almost always beats the exchange kiosk on price. Here's why:
- A refill fills your tank to the full 20 lbs of propane
- Exchange tanks from Blue Rhino and AmeriGas are typically filled to only 15 lbs (75% capacity) as a cost-saving measure, despite being sold as "20lb" tanks
- At $25 for an exchange vs $20 for a refill, you're paying more for less propane
The exchange wins on convenience — you can grab one at Walmart or Home Depot at any hour without special equipment. But if you have an extra 10 minutes and a local refill station nearby, the refill is the better deal. See our full breakdown: Propane Exchange vs Refill.
How to Get the Best Propane Price
- Buy in the off-season — propane is cheapest in late spring and summer when heating demand is low. If you have a large tank, fill it in May or June
- Compare local dealers — prices between dealers in the same city can vary by $0.50–$1.00/gallon
- Ask about budget billing — many residential propane suppliers offer budget plans that average your annual usage into equal monthly payments, protecting you from winter price spikes
- Pre-buy programs — some dealers let you lock in a price for the season in advance
- Avoid running out — emergency fills when your tank hits empty often come with premium pricing and delivery fees
How Much Propane Does a 20lb Tank Hold?
A standard 20lb propane tank holds approximately 4.7 gallons of liquid propane when full. At $3.00/gallon for a refill, that's about $14 worth of propane — which explains why refills from a dealer typically run $15–$22, with the markup covering the service and overhead.
Find a Propane Refill Location Near You
Ready to refill? Use our directory to find propane dealers and exchange locations near you across Texas and New Mexico. Browse by city: Houston, Dallas, San Antonio, Austin, Fort Worth, Albuquerque, Santa Fe, Las Cruces — or check the full map.
Also see: Propane Exchange vs Refill: Which Is Better? and How Long Does a 20lb Propane Tank Last?