How to Compare the Cost of Propane Gas

You can comparison-shop propane gas prices.
You can comparison-shop propane gas prices. (Image: Comstock/Comstock/Getty Images)

Propane gas prices can vary due to supply, demand and dealer pricing. you can, however, easily compare propane costs from companies in your area. Many propane dealers are independent small business owners who sell a largely unregulated commodity. Performing your due diligence to inquire about the cost per gallon, service levels and contractual agreements might help you save money on the costs of propane gas. Your time spent comparing propane gas prices could lead to a supplier who offers competitive rates and service in your area.

Calculate your annual propane gas usage. Use invoices from the previous year to find your annual propane gas usage. Add the gallons delivered from each invoice to obtain your annual propane gas consumption. Call local propane gas companies to get an estimate of the annual propane usage for a residence that you may soon occupy.

Contact five or more propane gas companies in your area to get price quotes.

List the quoted price per gallon from each company that you survey. Inquire about the cost per gallon for propane gas, as well as a minimum fill rate. For instance, some propane companies have a market price for propane that is discounted for orders that exceed 200 gallons. Include the market rate and the discounted rate within your market study.

Analyze the prices per gallon received during your research to compare the cost for propane gas. Compare the cost of propane for your typical order size to determine your savings based on the number of gallons you will need.

Tips & Warnings

  • Propane costs are influenced by consumer demand. Comparing prices during the summer months vs. the winter season could help you find more competitive propane gas rates.

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