Propane rose to 0.74 USD/Gal on June 6, 2025, up 0.80% from the previous day. Over the past month, Propane's price has risen 5.06%, and is up 6.29% 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 June of 2025.

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).

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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?

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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

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.

Graph and download economic data for Producer Price Index by Industry: Natural Gas Liquids Extraction: Propane (PCU21111221111212) from Jun 1984 to Jan 2025 about liquids, propane, extraction, gas, PPI, industry, inflation, price index, indexes, price, and USA.

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.

Rack Prices - Heating Fuel Prices by date

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 "https://www.ontario.ca/page/motor-fuel-prices">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 Propane Prices: Mont Belvieu, Texas (WPROPANEMBTX) from 1992-07-03 to 2025-06-13 about mont belvieu, propane, commodities, and USA.

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.

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.

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)

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.

PCEPI Inflation Nowcast: sa: Contribution: Energy Prices: Propane Gas: United States: Mont Belvieu: Spot Price data was reported at 0.000 % in 12 May 2025. This stayed constant from the previous number of 0.000 % for 05 May 2025. PCEPI Inflation Nowcast: sa: Contribution: Energy Prices: Propane Gas: United States: Mont Belvieu: Spot Price data is updated weekly, averaging 0.000 % from Apr 2019 (Median) to 12 May 2025, with 320 observations. The data reached an all-time high of 19.992 % in 16 May 2022 and a record low of 0.000 % in 12 May 2025. PCEPI Inflation Nowcast: sa: Contribution: Energy Prices: Propane Gas: United States: Mont Belvieu: Spot Price 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: Personal Consumption Expenditure (PCE) Inflation: Headline.

Interactive chart illustrating the history of Henry Hub natural gas prices. The prices shown are in U.S. dollars.

The average monthly price for natural gas in the United States amounted to 4.13 nominal U.S. dollars per million British thermal units (Btu) in March 2025. By contrast, natural gas prices in Europe were about three times higher than those in the U.S. Prices in Europe tend to be notably higher than those in the U.S. as the latter benefits from being a major hydrocarbon producer. Europe's import reliance European prices for natural gas rose most notable throughout the second half of 2021 and much of 2022, peaking at over 70 U.S. dollars per million Btu in August 2022. The sharp rise was due to supply chain issues and economic strain following the COVID-19 pandemic, which was further exacerbated by Russia’s invasion of Ukraine in early 2022. As a result of the war, many countries began looking for alternative sources, and Russian pipeline gas imports to the European Union declined as a result. Meanwhile, LNG was a great beneficiary, with LNG demand in Europe rising by more than 60 percent between 2021 and 2023. How domestic natural gas production shapes prices As intimated, the United States’ position among the leaders of worldwide natural gas production is one of the main reasons for why prices for this commodity are so low across the country. In 2023, the U.S. produced more than one trillion cubic meters of natural gas, which allays domestic demand and allows for far lower purchasing prices.

This statistic displays the domestic consumption of gas in Spain in 2021, by gas type. In 2021, the domestic consumption of butane in Spain amounted to approximately 558.4 thousand tons.

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 ...

Canada Avg Price: Auto Propane: Retail incl Taxes: Volume Weighted data was reported at 0.890 CAD/l in Jul 2018. This records an increase from the previous number of 0.887 CAD/l for Jun 2018. Canada Avg Price: Auto Propane: Retail incl Taxes: Volume Weighted data is updated monthly, averaging 0.550 CAD/l from Jan 1991 (Median) to Jul 2018, with 331 observations. The data reached an all-time high of 1.056 CAD/l in Feb 2014 and a record low of 0.240 CAD/l in Feb 1992. Canada Avg Price: Auto Propane: Retail incl 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.

The global propane market, valued at $132,410 million in 2025, is projected to experience steady growth, exhibiting a Compound Annual Growth Rate (CAGR) of 1.9% from 2025 to 2033. This growth is driven primarily by increasing demand from the petrochemical industry, where propane serves as a crucial feedstock for producing polypropylene and other valuable chemicals. Furthermore, the expanding residential and commercial heating sectors, particularly in regions with colder climates, contribute significantly to propane consumption. Growing awareness of propane's cleaner-burning properties compared to other fossil fuels also fuels its adoption. However, market growth faces challenges such as price volatility influenced by fluctuating crude oil prices and the ongoing transition towards renewable energy sources. Competition from alternative fuels like natural gas and electricity in certain applications also poses a restraint. The market segmentation, while not explicitly detailed, likely includes distinct categories based on application (e.g., petrochemicals, residential heating, industrial uses) and geographical distribution, reflecting varying market dynamics in different regions. Major players like ExxonMobil, BP, Chevron, Shell, TotalEnergies, and Sinopec dominate the market, leveraging their established infrastructure and distribution networks. The forecast period (2025-2033) anticipates a continuation of the current growth trajectory, although the rate might fluctuate slightly year-on-year due to economic conditions and geopolitical factors. To ensure sustained growth, industry players are likely focusing on enhancing operational efficiency, expanding into new markets, and exploring opportunities within the evolving energy landscape. Investment in propane storage and infrastructure is also crucial for mitigating supply chain vulnerabilities and ensuring reliable access for consumers. The strategic partnerships and mergers & acquisitions observed within the industry signify the increasing importance of consolidating market share and optimizing resource allocation. A deeper understanding of specific regional trends and regulatory changes impacting propane distribution will be crucial for forecasting the market's long-term development.