Propane fell to 0.76 USD/Gal on June 27, 2025, down 0.03% from the previous day. Over the past month, Propane's price has risen 1.86%, and is up 1.27% 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.

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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.

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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).

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

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 Propane Prices: Mont Belvieu, Texas (WPROPANEMBTX) from 1992-07-03 to 2025-06-20 about mont belvieu, propane, commodities, and USA.

Rack Prices - Heating Fuel Prices by date

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 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)

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

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.

The size of the Propane Market was valued at USD 98500 Million in 2023 and is projected to reach USD 27860 Million by 2032, with an expected CAGR of 4.33% during the forecast period. It will turn out to be an important component of the world scene, for it supplies a multi-purpose and clean source of fuel. Propane is a hydrocarbon gas whose properties boast its clean burning and a high level of energy content. Domestic heating, cooking, and industrial processes—agriculture to automotive fuel—are big areas where this fuel is applied. All these different usages can be broadly grouped into commercial propane, residential propane, and chemical-grade propane. The major technologies in propane production are natural gas processing and petroleum refining. The impact of propane is very enormous since it provides an alternative that results in low emission as compared to other fossil fuels. Advantages associated with its use include portability, cost-effectiveness, and its wide application in many sectors. 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: Harmful Effects of Propane at Higher Concentrations, Other Restraints. Notable trends are: Residential Segment to Dominate the Market.

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 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.

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 US propane market, a significant segment of the broader North American propane landscape, exhibits robust growth potential. Driven by increasing demand from residential heating, particularly in colder regions, and the industrial sector for processes requiring fuel and feedstock, the market is projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 5% through 2033. This growth is further fueled by the rising adoption of propane autogas in the transportation sector, offering a cleaner-burning alternative to gasoline and diesel. While the commercial sector remains a key consumer, the expansion of propane usage in niche industrial applications, such as agricultural drying and food processing, contributes to overall market expansion. Furthermore, ongoing investments in propane infrastructure, particularly storage and distribution networks, enhance market efficiency and accessibility. However, factors such as fluctuating crude oil prices, which directly influence propane costs, and the increasing availability of competing energy sources, represent potential restraints. The market's segmentation reveals a diverse consumer base. Residential consumption dominates, fueled by home heating and cooking needs, especially in rural and suburban areas. The commercial sector utilizes propane for heating, powering forklifts, and other operational needs. Industrial applications range widely, from chemical manufacturing to agricultural uses. The transportation segment, though smaller currently, exhibits substantial growth potential given environmental regulations and the advantages of propane autogas. Key players, such as AmeriGas Propane, Ferrellgas, and Suburban Propane, dominate the market through extensive distribution networks and established customer bases. However, increased competition from smaller regional distributors and evolving energy solutions necessitates ongoing innovation and strategic partnerships to maintain market share. The forecast for the US propane market indicates sustained growth, driven by diverse applications and a relatively stable regulatory environment. Recent developments include: December 2022: Suburban Propane Partners, L.P. acquires assets for the production of renewable natural gas ("RNG") from Equilibrium Capital Group. The collaboration was developed to serve as a long-term growth platform for the identification, development, and management of further RNG projects, resulting in the acquisition of two biogas facilities that were already in operation., August 2022: AmeriGas has just acquired a forklift cylinder exchange in the state of Florida. This purchase will allow the company to increase its presence and reach in the rapidly expanding Florida market. AmeriGas will be able to continue its expansion in South Florida because of the outstanding opportunity presented by this acquisition.. Key drivers for this market are: Increase in Demand from Residential and Transportation Sectors, Demand in the Petrochemical Industry. Potential restraints include: Increase in Demand from Residential and Transportation Sectors, Demand in the Petrochemical Industry. Notable trends are: The Residential Segment to Dominate the Market.

Explore the 2026 propane market: growth drivers, global size forecasts, price trends & key players. Learn what shapes future demand & trade dynamics.

Propane Market Outlook

The global propane market size is projected to grow significantly from $150 billion in 2023 to $220 billion by 2032, reflecting a robust CAGR of 4.5%. This growth is primarily driven by the increasing demand for propane across various applications such as residential heating, industrial power generation, and agricultural processes. Propane, known for its efficient energy output and relatively low environmental impact, is becoming a preferred choice over other fossil fuels. The shift towards clean energy solutions and the rising awareness of propane's versatility are pivotal factors contributing to the expansion of this market.

One of the primary growth factors for the propane market is the increasing adoption in residential applications. Propane's efficiency, cost-effectiveness, and low carbon emissions make it an ideal choice for home heating and cooking. Additionally, with the rising trend of off-grid living and remote working, there is an increasing demand for reliable and independent energy sources, further bolstering the market for residential propane use. The growing awareness of propane as a cleaner alternative to traditional heating oil and its ability to work efficiently in colder climates is also driving its popularity in residential sectors globally.

In the industrial sector, propane is gaining traction due to its versatility and efficiency in power generation and as a feedstock for various chemical processes. Industries that require high-energy output and reliable fuel sources are turning to propane because of its consistent performance and lower emissions compared to other hydrocarbons like coal and oil. Moreover, the trend towards decentralized power generation and the need for backup energy solutions in sectors such as manufacturing and construction are further enhancing the demand for propane. As industries continue to prioritize sustainable practices, propane's role as a cleaner energy source is expected to grow significantly.

Agriculture is another sector witnessing increased propane usage, particularly for grain drying and irrigation processes. Propane-fueled equipment is becoming more popular due to its efficiency and ability to operate in remote locations without access to the grid. The agricultural industry's shift towards sustainable practices and the need for cost-effective energy solutions are propelling the demand for propane. Furthermore, government incentives and subsidies supporting clean energy practices in agriculture are encouraging farmers to adopt propane-based technologies, thereby contributing to the market's growth.

Regionally, North America holds a significant share of the propane market, driven by high demand in both residential and industrial sectors. The U.S., in particular, is a major producer and consumer of propane, benefiting from abundant shale gas resources. Europe and Asia Pacific are also key regions, with growing demand for propane in residential heating and industrial applications. The development of infrastructure and increasing investments in propane-based solutions in these regions are projected to contribute to the market's growth. The Asia Pacific region is expected to witness the highest CAGR, driven by rising industrialization and urbanization, especially in countries like China and India.

Application Analysis

The residential application segment is a crucial component of the propane market, driven by the demand for reliable and efficient energy sources for heating and cooking. Propane's versatility and clean-burning properties make it an ideal fuel for residential use, especially in regions with harsh winters and limited access to natural gas pipelines. In addition to space heating and water heating, propane is used in residential settings for cooking, drying clothes, and powering backup generators. The trend towards sustainable energy solutions has led to increased adoption of propane tanks and appliances in homes, as they offer a practical and eco-friendly alternative to traditional energy sources.

Commercial applications of propane are expanding as businesses seek cost-effective and environmentally friendly energy solutions. Propane is used in a variety of commercial settings, including restaurants, hotels, and retail establishments, primarily for heating, cooking, and refrigeration. The hospitality industry, in particular, relies heavily on propane for its ability to provide consistent and efficient energy for multiple applications. Propane's portability and availability make it a preferred choice for businesses in remote areas or those with

The global propane gas bottle market is experiencing robust growth, driven by increasing industrial and commercial applications, coupled with rising household demand in developing economies. The market size in 2025 is estimated at $5 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 6% from 2025 to 2033. This growth is fueled by several factors: the expanding use of propane in heating, cooking, and industrial processes; the increasing preference for portable and readily available energy sources; and government initiatives promoting cleaner energy solutions in certain regions. However, the market faces some challenges, including fluctuating propane prices, concerns about safety and environmental impact, and competition from alternative energy sources like natural gas and electricity. The market segmentation reveals strong demand across various bottle sizes (20 lb, 30 lb, 40 lb, 100 lb, and others), with the industrial and commercial sectors dominating application segments. Key players like Luxfer Group, Worthington Industries, and Linde Gas are strategically investing in research and development to enhance product quality, safety features, and expand their market presence. Regional analysis highlights the significant contribution of North America and Asia Pacific to the overall market value. North America benefits from established infrastructure and high consumption rates, while Asia Pacific is witnessing accelerated growth due to rapid industrialization and urbanization. Europe, while a mature market, also contributes significantly, particularly in countries with established propane distribution networks. The forecast period (2025-2033) anticipates continued expansion, propelled by increasing energy demands, particularly in emerging economies. However, sustained growth will depend on addressing the challenges related to pricing volatility, environmental concerns, and technological advancements in alternative energy solutions. The competitive landscape remains dynamic, with both established players and smaller regional companies striving for market share.

Graph and download economic data for Producer Price Index by Industry: Natural Gas Extraction: Propane (PCU21113021113022) from Jun 1984 to Apr 2025 about propane, extraction, gas, PPI, industry, price index, indexes, price, and USA.