The propane vs natural gas debate comes down to two things: where you live and how you're using it. Natural gas is almost always cheaper per BTU when you have access to a utility line — but millions of Americans don't, especially in rural Texas and New Mexico. Here's how the numbers actually stack up.

The Basic Price Comparison

You can't compare propane (priced per gallon) and natural gas (priced per therm or Mcf) directly without doing a little math. Both fuels are ultimately measured by the heat they produce — BTUs.

On a pure cost-per-BTU basis, natural gas is typically 2–3x cheaper than propane. That gap narrows in rural areas where propane is delivered competitively and natural gas infrastructure doesn't exist.

But Natural Gas Isn't Available Everywhere

This is the key point that the cost comparison misses. About 10% of U.S. homes — and a much higher percentage of rural homes in Texas and New Mexico — have no access to natural gas lines. For these households, propane isn't more expensive than natural gas. It's the only option besides electricity.

In areas like the Texas Hill Country, rural West Texas, the New Mexico high desert, and the Four Corners region, propane is the default fuel for heating, cooking, and water heating for hundreds of thousands of homes.

Propane vs Natural Gas for Heating

Propane furnaces and boilers are actually more efficient than their natural gas counterparts — propane burns hotter (3,614°F vs 3,560°F for natural gas). A high-efficiency propane furnace can achieve 95%+ AFUE ratings, meaning nearly all the fuel becomes usable heat.

That said, because natural gas costs less per BTU, a natural gas heating system still typically costs less to operate annually — by roughly $300–$700/year for an average home, depending on climate and usage.

Propane vs Natural Gas for Cooking

This is where propane wins on performance. Propane burns hotter and gives chefs more precise flame control than natural gas. Many professional-grade ranges sold as "dual fuel" use a gas cooktop — and in areas without gas lines, propane is the way to get that restaurant-style flame.

For a household that cooks regularly, the difference in fuel cost between propane and natural gas for cooking is small — usually under $5/month — because stoves use relatively little fuel compared to heating systems.

Propane vs Natural Gas for Water Heating

Water heating is the second-biggest energy expense in most homes after space heating. A propane tankless water heater can cut water heating costs significantly compared to an electric system, even if propane costs more per BTU than natural gas. The comparison:

The Bottom Line

• If you have natural gas access: natural gas wins on cost, usually by a significant margin for heating
• If you don't have gas line access: propane is the best gas alternative — cheaper to operate than all-electric for heating and cooking
• For grilling and outdoor cooking: propane is the clear winner for convenience and performance regardless of what's inside the house

Find Propane Near You

Whether you're refilling a grill tank or topping off a whole-home propane system, our directory covers suppliers across Texas and New Mexico. Browse locations in Houston, Dallas, San Antonio, Austin, Albuquerque, Santa Fe, and more.

Also see: What Size Propane Tank Do I Need? and Propane Exchange vs Refill: Which Is Better?