Propane rose to 0.71 USD/Gal on September 26, 2025, up 0.15% from the previous day. Over the past month, Propane's price has risen 4.39%, and is up 13.60% 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 September of 2025.

View weekly updates and historical trends for US Residential Propane Price. from United States. Source: Energy Information Administration. Track economic …

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).

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US Propane Market Size 2025-2029

The US propane market size is valued to increase by USD 8.42 billion, at a CAGR of 6.6% from 2024 to 2029. Advancements in propane storage and transportation will drive the US propane market.

Major Market Trends & Insights

By End-user - Industrial segment was valued at USD 7.38 billion in 2022
By Grade Type - HD-5 propane segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 64.96 billion
Market Future Opportunities: USD 8.42 billion
CAGR from 2024 to 2029 : 6.6%

Market Summary

Propane, a versatile hydrocarbon fuel, plays a pivotal role in the US energy market, catering to various sectors including residential, commercial, and industrial applications. The market's growth is driven by several factors, including the increasing demand for cleaner and more efficient energy sources and the expanding infrastructure for propane storage and transportation. Recent advancements in propane storage technology have led to the development of larger, more efficient tanks, enabling businesses to store larger quantities of propane on-site. Simultaneously, innovations in transportation methods, such as rail and marine transport, have expanded the reach of propane, making it more accessible to consumers in remote areas.
The emergence of renewable propane, derived from natural gas processing and biomass, adds another dimension to the market. This eco-friendly alternative offers businesses the opportunity to reduce their carbon footprint while continuing to use propane for their energy needs. However, the propane market faces challenges from competitive alternative fuels, such as natural gas and electricity. These fuels offer similar benefits but may be more cost-effective or convenient for some businesses. As a result, propane providers must continue to innovate and adapt to remain competitive. In conclusion, the US propane market is a dynamic and evolving landscape, shaped by advancements in technology, the availability of renewable alternatives, and the competitive pressures of alternative fuels.
Businesses looking to leverage propane as an energy source must stay informed of these trends and adapt to remain competitive.

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

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How is the Propane in US Market Segmented and what are the key trends of market segmentation?

The propane in US industry 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

  North America

    US

By End-user Insights

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

The Propane Market in the US is a dynamic and evolving sector, with demand influenced by various factors. Industrial sectors, particularly manufacturing and construction, drive growth due to their reliance on propane for heating, processing, and other applications. Seasonal weather patterns significantly impact demand, with cold weather increasing the need for propane in industries such as agriculture, food processing, and construction. Propane competes with other energy sources, with price fluctuations shaping demand. For instance, a 10% decrease in propane prices can lead to a 3% increase in demand. Propane is used extensively in residential applications, including grilling, water heating, and heating systems.

Commercial propane delivery, storage capacity expansion, and pipeline infrastructure investments are ongoing activities to meet the evolving needs of the market. Safety, efficiency, and regulatory compliance are crucial considerations, with investments in equipment maintenance, leak detection, and combustion efficiency essential. The propane supply chain involves various transportation methods, including trucking, rail, and pipeline infrastructure. Despite price volatility, the long-term demand for propane is forecasted to remain strong due to its energy density and versatility in various applications, from industrial processes to residential use.

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The Industrial segment was valued at USD 7.38 billion in 2019 and showed a gradual increase during the forecast period.

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Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies

View weekly updates and historical trends for US Wholesale Propane Price. from United States. Source: Energy Information Administration. Track economic da…

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

Graph and download economic data for Propane Prices: Mont Belvieu, Texas (WPROPANEMBTX) from 1992-07-03 to 2025-09-19 about mont belvieu, propane, commodities, and USA.

View weekly updates and historical trends for Maryland Residential Propane Price. from United States. Source: Energy Information Administration. Track eco…

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

Rack Prices - Heating Fuel Prices by date

View weekly updates and historical trends for Pennsylvania Residential Propane Price. from United States. Source: Energy Information Administration. Track…

The Propane Market Report is Segmented by Source (Refinery, Associated Gas, Non-Associated Gas, and Bio-Propane), End-User Industry (Residential, Commercial, Industrial, Transportation, and More), Distribution Channel (Bulk Delivery, Cylinder Distribution, and More), and Geography (Asia-Pacific, North America, Europe, South America, and Middle East and Africa). The Market Forecasts are Provided in Terms of Volume (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 ...

View weekly updates and historical trends for New Jersey Residential Propane Price. from United States. Source: Energy Information Administration. Track e…

The global propane market size was valued at 187.5 Million Tons in 2024. Looking forward, IMARC Group estimates the market to reach 252.8 Million Tons by 2033, exhibiting a CAGR of 3.4% during 2025-2033. Asia Pacific currently dominates the market, holding a significant market share of over 51.2% in 2024. The market is primarily driven by rising industrial applications, the escalating energy demand, supply dynamics influenced by crude oil prices and geopolitical events, and the increasing transition to cleaner energy sources.

The GCC propane market size reached 3.6 Million Tons in 2024. Looking forward, IMARC Group expects the market to reach 5.4 Million Tons by 2033, exhibiting a growth rate (CAGR) of 4.53% during 2025-2033. The growing demand for reliable backup power during electricity disruptions, increasing focus on maintaining sustainability and reducing environmental impact, and rising need to reduce dependency on foreign energy sources and enhance energy security represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the GCC propane market report, along with forecasts at the regional and country levels for 2025-2033. Our report has categorized the market based on form, grade, and end use industry.

View weekly updates and historical trends for Minnesota Residential Propane Price. from United States. Source: Energy Information Administration. Track ec…

​The United States propane market size is projected to exhibit a growth rate (CAGR) of 2.39% during 2025-2033. The growing focus of various industries to lower their carbon footprint and minimize greenhouse gas emissions, rising energy demand in commercial and residential areas, and increasing demand for cleaner-burning fuels in various sectors represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the United States propane market report, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on form, grade, and end use industry.

Global Propane Market is poised for a significant growth, with market size projected to surge from USD 101.84 Billion in 2024 to USD 166.16 Billion by 2033, showcasing a robust Compound Annual Growth Rate (CAGR) of 5.59% during the forecast period.

The Global Propane market size to cross USD 166.16 Billion by 2033. [https://edison.valuemarketresearch.com//uploads/report_images/VMR11212070/propane