Propane rose to 0.74 USD/Gal on July 11, 2025, up 0.54% from the previous day. Over the past month, Propane's price has fallen 2.75%, and is down 8.50% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Propane - values, historical data, forecasts and news - updated on July of 2025.

The Average Residential Retail Propane Prices dataset provides New York residents and businesses with objective information on average residential retail propane pricing in New York State and by region beginning September 8, 1997. Pricing data is obtained via surveys conducted by New York State Energy Research and Development Authority (NYSERDA) staff on a weekly basis during heating season (September to March) and bi-weekly during the rest of the year. All prices are listed in dollars per gallon. The Average Home Heating Oil Prices dataset, Average Residential Retail Kerosene Prices dataset, and Average Residential Retail Propane Prices dataset are collectively referred to as the Heating Fuel Prices dataset. For current and historical residential retail price data, regional comparisons, and fuel type comparisons, please visit the Propane Prices Dashboard: https://www.nyserda.ny.gov/researchers-and-policymakers/energy-prices/propane/average-propane-prices The New York State Energy Research and Development Authority (NYSERDA) offers objective information and analysis, innovative programs, technical expertise, and support to help New Yorkers increase energy efficiency, save money, use renewable energy, and reduce reliance on fossil fuels. To learn more about NYSERDA’s programs, visit nyserda.ny.gov or follow us on X, Facebook, YouTube, or Instagram.

Get the latest insights on price movement and trend analysis of Propane in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

Snapshot img

US Propane Market Size 2025-2029

The US propane market size is forecast to increase by USD 8.42 billion at a CAGR of 6.6% between 2024 and 2029.

The Propane market in the US is experiencing significant growth, driven by advancements in propane storage and transportation technologies. These innovations have increased the efficiency and safety of propane handling, making it an attractive alternative fuel for various industries, including residential, commercial, and industrial sectors. Furthermore, the development of renewable propane, derived from natural gas processing and biomass, is expanding the market's reach and reducing its carbon footprint. However, the market's growth is not without challenges. Competitive alternative fuels, such as natural gas and electricity, are gaining popularity due to their lower carbon emissions and increasing affordability. To capitalize on market opportunities and navigate these challenges effectively, companies must focus on improving propane's competitiveness through cost reduction, efficiency gains, and the adoption of cleaner production methods.
Additionally, collaboration with government agencies and industry associations to promote the use of propane as a clean and efficient fuel source can help mitigate competition and strengthen the market's strategic landscape.

What will be the size of the US Propane Market during the forecast period?

Request Free Sample

The propane market in the US continues to evolve, driven by various factors including propane technology advancements, alternative fuel infrastructure development, and grid modernization projects. Propane's versatility as an energy source, coupled with its environmental sustainability initiatives such as emission reduction and renewable energy integration, positions it as a key player in the energy transition. Propane's adoption is further boosted by smart grid deployment and energy efficiency standards, as well as the increasing focus on energy security policies and sustainable development goals. Propane's competition with natural gas and the emergence of alternative fuels like hydrogen and biodiesel, as well as electric vehicle infrastructure, necessitate continuous innovation and cost savings through propane efficiency improvements, system maintenance, and demand forecasting.
Propane's role in clean energy investments, carbon offsetting programs, and carbon capture technologies also contribute to its market outlook. Propane's price volatility, safety training, and delivery logistics remain critical areas of focus, while regulations compliance and appliance repair are essential for maintaining consumer trust and market growth. Overall, the propane market's future direction is influenced by the interplay of these factors and the evolving energy landscape.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Industrial
  Commercial
  Residential
  Others


Grade Type

  HD-5 propane
  HD-10 propane
  Commercial propane


Type

  Gas
  Liquid


Application

  Heating
  Cooking
  Power Generation
  Motor Fuel
  Industrial Processes
  Others


Geography

  US

By End-user Insights

The industrial segment is estimated to witness significant growth during the forecast period.

Propane, a versatile energy source, plays a significant role in various industries and applications in the US. Its demand is influenced by economic activity, particularly in manufacturing and construction sectors, where propane is used for heating, processing, and other applications. Cold weather increases the demand for propane in industries such as agriculture, food processing, and construction, which rely on it for heating and drying. Seasonal fluctuations in weather patterns also impact short-term demand. Propane competes with other energy sources, including natural gas, electricity, and heating oil. The relative cost of propane versus these alternatives influences demand.

Propane is also used in various applications, such as forklifts, buses, generators, cooking, and heating, offering energy security and independence. Propane innovation continues to drive the market, with advancements in green technology, energy storage, carbon capture, and renewable fuels. Sustainable development and environmental sustainability are key considerations, with regulations focusing on reducing greenhouse gas emissions and improving energy efficiency. The market also includes propane retailers, suppliers, and distributors, offering various services such as fueling, delivery, and conversion. The industrial sector's demand for propane is expected to remain strong, driven by its versatility, efficiency, and competitiveness.

Get a glance at the market r

Graph and download economic data for Propane Prices: Mont Belvieu, Texas (WPROPANEMBTX) from 1992-07-03 to 2025-07-04 about mont belvieu, propane, commodities, and USA.

Rack Prices - Heating Fuel Prices by date

Find in-season and off-season pricing for heating fuels, including heating oil, propane and wood price surveys by DOER. Links to electric and natural gas rates also available here.

The global propane market is expected to grow in the forecast period of 2025-2034 at a CAGR of 4.00%.

This dataset contains weekly retail prices of three grades of gasoline, diesel, auto propane and compressed natural gas in 10 Ontario markets. Prices are in cents per litre (with compressed natural gas prices in cents per gasoline-equivalent litres). To view charts and current fuel price data you can also visit the motor fuel prices page. This data is related to: * Motor fuel prices * Law: Fuel Tax Act Related data: * Fuel and gasoline tax registrant list

Graph and download economic data for Producer Price Index by Commodity: Fuels and Related Products and Power: Propane (WPU05320104) from Jun 1977 to May 2025 about propane, fuels, commodities, PPI, inflation, price index, indexes, price, and USA.

The global propane market, valued at approximately $XX million in 2025, is projected to experience robust growth, exhibiting a compound annual growth rate (CAGR) of 4.33% from 2025 to 2033. This expansion is driven by several key factors. Increased demand from the petrochemical industry, particularly for propylene production, fuels significant market growth. Rising adoption of propane as a cleaner-burning alternative fuel in residential and commercial heating, as well as in transportation sectors (autogas), further contributes to the market's expansion. Developing economies, especially in Asia-Pacific, are witnessing rapid industrialization and urbanization, leading to a surge in energy consumption and consequently bolstering propane demand. Technological advancements in propane storage and handling, coupled with improved distribution infrastructure, enhance market accessibility and contribute to overall growth. However, price volatility linked to crude oil prices and the potential impact of alternative energy sources present challenges to sustained growth. Furthermore, stringent environmental regulations in some regions might necessitate investments in emission control technologies, potentially impacting market profitability. Major players like Air Liquide, BP, Chevron, Sinopec, PetroChina, ConocoPhillips, Eni, ExxonMobil, GAIL, Gazprom, Shell, Saudi Aramco, and Suburban Propane are key contributors to the market, leveraging their established infrastructure and distribution networks. Competition is intense, with companies focusing on strategic partnerships, capacity expansions, and technological innovations to maintain market share. Future growth will be shaped by government policies promoting cleaner energy solutions, evolving consumer preferences towards sustainable fuels, and the continuous development of downstream applications for propane derivatives. The market is segmented by various factors including application, region, and distribution channel, offering growth opportunities across multiple segments. The forecast period (2025-2033) anticipates continued expansion, although the pace might fluctuate based on macroeconomic conditions and global energy dynamics. Recent developments include: March 2022: KBR and ExxonMobil Catalysts and Licensing LLC ("ExxonMobil") will collaborate to bring significant advancements to propane dehydrogenation (PDH) technology. Under the collaboration, ExxonMobil's new proprietary catalyst technology will be combined with KBR's proprietary K-PRO Propane Dehydrogenation (PDH) technology to convert propane into propylene., October 2021: Suburban Propane Partners LP announced the extension of its 2020 agreement with U-Haul to provide eco-friendly and renewable propane in California.. Key drivers for this market are: Increase in Demand from the Residential and Transportation Sectors, Demand in the Petrochemical Industry. Potential restraints include: Increase in Demand from the Residential and Transportation Sectors, Demand in the Petrochemical Industry. Notable trends are: Residential Segment to Dominate the Market.

United States Retail Sales Nowcast: sa: YoY: Contribution: Energy Prices: Propane Gas: Spot Price: Mont Belvieu data was reported at 0.000 % in 12 May 2025. This stayed constant from the previous number of 0.000 % for 05 May 2025. United States Retail Sales Nowcast: sa: YoY: Contribution: Energy Prices: Propane Gas: Spot Price: Mont Belvieu data is updated weekly, averaging 0.122 % from Feb 2020 (Median) to 12 May 2025, with 274 observations. The data reached an all-time high of 9.898 % in 12 Feb 2024 and a record low of 0.000 % in 12 May 2025. United States Retail Sales Nowcast: sa: YoY: Contribution: Energy Prices: Propane Gas: Spot Price: Mont Belvieu data remains active status in CEIC and is reported by CEIC Data. The data is categorized under Global Database’s United States – Table US.CEIC.NC: CEIC Nowcast: Retail Sales.

United States - Propane Prices: Mont Belvieu, Texas was 0.77800 $ per Gallon in January of 2024, according to the United States Federal Reserve. Historically, United States - Propane Prices: Mont Belvieu, Texas reached a record high of 1.46400 in January of 2011 and a record low of 0.26000 in January of 1998. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Propane Prices: Mont Belvieu, Texas - last updated from the United States Federal Reserve on July of 2025.

This dataset contains United States Daily Propane Spot Prices for 1992 - 2021. Data from US Energy Information Administration. Follow https://datasource.kapsarc.org/ for timely data to advance energy economics research. Notes:Propane (C3H8): A normally gaseous straight-chain hydrocarbon. It is a colorless paraffinic gas that boils at a temperature of -43.67 degrees Fahrenheit. It is extracted from natural gas or refinery gas streams. It includes all products designated in ASTM Specification D1835 and Gas Processors Association Specifications for commercial propane and HD-05 propane. For price data, it does not include the propane portion of any natural gas liquids (NGL) mixes; i.e., butane-propane and ethane-propane mix.Mont Belvieu, TX Propane Spot Price FOB (Dollars per Gallon)

Canada Avg Price: Auto Propane: Retail excl Taxes: Volume Weighted data was reported at 0.748 CAD/l in Jul 2018. This records an increase from the previous number of 0.745 CAD/l for Jun 2018. Canada Avg Price: Auto Propane: Retail excl Taxes: Volume Weighted data is updated monthly, averaging 0.461 CAD/l from Jan 1991 (Median) to Jul 2018, with 331 observations. The data reached an all-time high of 0.912 CAD/l in Feb 2014 and a record low of 0.180 CAD/l in Feb 1992. Canada Avg Price: Auto Propane: Retail excl Taxes: Volume Weighted data remains active status in CEIC and is reported by Kent Group Ltd.. The data is categorized under Global Database’s Canada – Table CA.P006: Average Price: Automotive Natural Gas and Propane.

New York Energy Prices presents retail energy price data. Energy prices are provided by fuel type in nominal dollars per million Btu for the residential, commercial, industrial, and transportation sectors. This section includes a column in the price table displaying gross domestic product (GDP) price deflators for converting nominal (current year) dollars to constant (real) dollars. To convert nominal to constant dollars, divide the nominal energy price by the GDP price deflator for that particular year. Historical petroleum, electricity, coal, and natural gas prices were compiled primarily from the Energy Information Administration. How does your organization use this dataset? What other NYSERDA or energy-related datasets would you like to see on Open NY? Let us know by emailing OpenNY@nyserda.ny.gov.

According to Cognitive Market Research, the global Propane market size will be USD 8742 million in 2025. It will expand at a compound annual growth rate (CAGR) of 4.20% from 2025 to 2033.

North America held the market share of around 30% of the global revenue with a market size of USD 2447.76 million in 2025 and will grow at a compound annual growth rate (CAGR) of 2.5% from 2025 to 2033.
Europe accounted for a market share of 25% of the global revenue with a market size of USD 2141.79 million.
APAC held a major market share of 36% of the global revenue with a market size of USD 3147.12 million in 2025 and will grow at a compound annual growth rate (CAGR) of 5.6% from 2025 to 2033.
South America has a market share of 4% of the global revenue with a market size of USD 332.20 million in 2025 and will grow at a compound annual growth rate (CAGR) of 4.9% from 2025 to 2033.
Middle East had a market share of 4% of the global revenue and was estimated at a market size of USD 349.68 million in 2025 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2025 to 2033.
Africa had a market share of 3.70% of the global revenue and was estimated at a market size of USD 323.45 million in 2025 and will grow at a compound annual growth rate (CAGR) of 3.8% from 2025 to 2033.
Gas category is the fastest growing Form segment of the Propane industry

Market Dynamics of Propane Market

Key Drivers for Propane Market

Increasing demand for clean energy alternatives to reduce greenhouse gas emissions drives market growth

As environmental concerns over climate change intensify, there is an increasing shift toward clean energy solutions, and propane is seen as an efficient, low-emission alternative to traditional fossil fuels. Propane produces significantly fewer greenhouse gases compared to coal, gasoline, and diesel. As per the International Energy Agency (IEA), the global renewable electricity generation is forecast to climb over 17,000 TWh by the end of the decade, a 90% increase from 2023. Renewables are projected to surpass coal in 2025, and solar PV is expected to become the largest renewable power source globally by 2029, outstripping hydropower. Governments and industries are investing in clean technologies, and propane, being a cleaner-burning fossil fuel, stands out as a suitable option for industries looking to reduce their carbon footprint. This rising demand for cleaner energy fuels the market’s growth by driving investments in propane production, infrastructure, and adoption across various sectors.

https://www.iea.org/energy-system/renewables

Growing use of propane in transportation as a cleaner fuel option

Propane is increasingly being adopted as an alternative fuel in the transportation sector, particularly in fleet operations. It is a cleaner-burning fuel compared to gasoline and diesel, with lower emissions of carbon monoxide, nitrogen oxides, and particulate matter. As per the IEA, in 2021, renewables accounted for 3.9% of total transport energy consumption, with the bulk of this being biofuels (3.5%) and the rest renewable electricity (0.4%) Additionally, propane-powered vehicles benefit from lower fuel costs, making it an attractive option for public transportation, delivery fleets, and other commercial vehicle sectors. The rise of government incentives and environmental policies promoting alternative fuels supports the adoption of propane in transportation, which accelerates its market penetration.

https://www.ren21.net/gsr-2024/modules/energy_demand/03_renewables_in_transport/

Restraint Factor for the Propane Market

Volatility in propane prices due to dependency on oil and natural gas markets hinders market growth

Propane prices are highly influenced by fluctuations in the global oil and natural gas markets, making the market susceptible to price volatility. The interconnectedness with crude oil prices, geopolitical tensions, and natural gas supply disruptions can cause sharp price swings, affecting both consumers and suppliers. This volatility makes propane less predictable as a fuel source for industries and households, potentially limiting its widespread adoption. The uncertainty in pricing could also deter investments in propane infrastructure and technology, slowing overall market growth.

Market Trends in Propane Market

Increasing adoption of propane-powered vehicles for fleet operations

Propane-powered vehicles are becoming more ...

The Residential Retail Propane dataset provides information on propane prices and sales for residential use. It offers insights into energy costs, consumption trends, and fuel availability in the residential sector.

The global Propane market size reached USD 81.40 Billion in 2021 and is expected to reach USD 122.64 Billion in 2030 registering a CAGR of 4.7%. Propane industry report classifies global market by share, trend, growth and based on form, grade, end-use, and region | Liquefied Petroleum Gas (LPG)

United States - Consumer Price Index for All Urban Consumers: Propane, Kerosene, and Firewood in U.S. City Average was 427.21200 Index Dec 1986=100 in July of 2024, according to the United States Federal Reserve. Historically, United States - Consumer Price Index for All Urban Consumers: Propane, Kerosene, and Firewood in U.S. City Average reached a record high of 461.69000 in January of 2022 and a record low of 101.60000 in July of 1987. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Consumer Price Index for All Urban Consumers: Propane, Kerosene, and Firewood in U.S. City Average - last updated from the United States Federal Reserve on July of 2025.