Alaska Propane Price 2026: Cost Per Gallon, Suppliers & Delivery

Alaska residential propane runs roughly $3.85/gal in 2026, behind only Hawaii in the West region and roughly 44% above the national mark. This is the no-spin breakdown: import-only supply chain reality, Anchorage vs interior vs Bush Alaska price spread, fill-by-tank-size math, the propane-vs-fuel-oil-vs-wood-stove decision, and how to actually save money in one of the most expensive US propane markets.

Latest EIA residential propane price

Source: Alaska residential propane retail estimate (no EIA SHOPP series; verified against public Alaska supplier and Regulatory Commission of Alaska filings). Current data is the final release of the 2025/26 heating season (week ending 30 March 2026). EIA pauses weekly publication April-September; next release expected October 2026. Refreshed 26 May 2026.

Alaska Propane Pricing Snapshot (2026)

Alaska statewide estimate

$3.85/gal

Anchorage / South-central baseline; interior and Bush Alaska run materially higher

vs national average

+44%

National avg $2.67/gal. AK pays $1.18 more per gallon at the statewide baseline.

vs West region avg

+34%

Region avg $2.88/gal. Alaska sits well above the West regional norm, behind only Hawaii.

Annual fuel cost (1,000 gal)

$3850

Typical AK propane-heat household uses 800-1,200 gal/year; interior cabins burn more

500-gallon refill (400 usable)

$1540

Anchorage / road-system rate; off-road communities can pay 1.5-2.5x more

Bush Alaska premium

+50-150%

Off-road villages relying on small barge or airfreight commonly pay this much above the Anchorage rate

Data source caveat. The EIA State Heating Oil and Propane Program (SHOPP) does not publish a residential propane series for Alaska, PADD 5 has no SHOPP residential propane coverage. The headline figure above is a manually-verified estimate built from public Alaska supplier disclosures, Regulatory Commission of Alaska (RCA) filings, and cross-checks against Pacific Propane Gas Association regional benchmarks. It is meant as a reasonable Anchorage / road-system reference; real quotes vary widely across the state and you should always get written supplier quotes for your specific delivery point.

Why Alaska Propane Prices Sit Where They Do

Alaska is structurally one of the two most expensive US propane markets, alongside Hawaii. The drivers are geographic and logistical, not seasonal. They will not normalise toward the national average without a major shift in regional infrastructure that nobody is currently building.

1. No in-state propane production. Roughly 90% of US propane comes from natural-gas processing in Texas, Louisiana, Oklahoma and the Marcellus / Utica shale. None of that supply is in Alaska. Every residential gallon delivered in the state has been moved at least once across the Gulf of Alaska, the Bering Sea, or the Pacific Northwest rail corridor. The structural cost floor is high before any retailer touches the gallon.

2. Multi-modal supply chain, rail, barge, and air. Anchorage and the Mat-Su Valley receive propane via rail tank car from Tacoma. Southeast Alaska, the Aleutians and the North Slope rely on seasonal barge runs from the Pacific Northwest. Bush Alaska communities off the road system (Kotzebue, Bethel, Nome, Dillingham) get small barge plus airfreight resupply. Each transfer is a margin layer; in the most remote villages a single 100-gallon delivery can carry $300-$500 of pure logistics on top of wholesale.

3. Extreme cold compounds per-household burn rate. Interior Alaska winters routinely deliver -40F to -60F overnight lows from December through February. A propane-heat household in Fairbanks burns 1.5-2x what a same-size house in the Lower 48 would consume, so the per-gallon premium gets multiplied by a higher gallon count. This is also why HAP benefit calculations weight interior and Bush Alaska zones more heavily, the underlying cold severity is real.

4. Dispersed customer base; ENSTAR dominates Anchorage. ENSTAR Natural Gas serves most of Anchorage and the Mat-Su Valley, which leaves propane as primarily a peri-urban, off-grid, and rural fuel statewide. Low residential customer density per supplier route translates directly into per-gallon overhead, particularly in Southeast and the interior. Outside the rail-served corridor, two or three retailers may serve an entire region.

Alaska Propane Companies: How to Find a Verified Supplier

Buying propane from an unlicensed dealer is both a safety risk and a consumer-protection risk. Licensed Alaska dealers must comply with the Alaska LP-Gas Code (which adopts NFPA 58), carry insurance, and meet operator-training qualifications administered through the State Fire Marshal's Office. Three reliable starting points for finding a verified supplier:

Alaska State Fire Marshal's Office (Division of Fire and Life Safety) at dps.alaska.gov/Fire/Home, adopts and enforces the Alaska LP-Gas Code, certifies LP-gas operators, and issues hazardous materials permits to bulk dealers and installers.
Pacific Propane Gas Association (PPGA) at pacificpga.org, the regional trade body covering Alaska, Hawaii, Oregon and Washington. Membership directory lists active marketers across the four-state region; PPGA also runs Pacific PERF for safety, training and research.
National Propane Gas Association (NPGA) at npga.org, national member directory listing licensed propane retailers across all 50 states.

Always get a written quote that itemises per-gallon price, delivery fee, tank rental (if applicable), minimum-delivery surcharge, and any Bush Alaska airfreight or barge premium. In off-road communities, ask whether the quote is for bulk delivery or 100-lb cylinder pickup, since the per-gallon-equivalent cost differs sharply. Per-gallon spreads of 30 to 80 cents within the same borough are common, particularly in Southeast and the interior.

Tier-1 supplier list coming. A hand-curated list of named Alaska propane suppliers (with HQ, coverage area, and notes on contract types) is in our editorial pipeline. We publish supplier lists only once each name has been verified against the Alaska State Fire Marshal's LP-gas operator records and the supplier's active service-area page. We do not generate supplier names from training data; that is a hallucination risk we treat seriously.

Alaska Propane Fill Costs by Tank Size (at $3.85/gal)

Propane tanks fill to 80% of stated capacity (the "80% rule") to allow for thermal expansion. Below is what each fill costs at the Alaska statewide reference rate. Real-world quotes vary significantly across the state, Anchorage and the Mat-Su typically come in close to the table, Fairbanks and the interior add $0.30-$0.80/gal, and Bush Alaska off-road communities can run 1.5x to 2.5x the table values once airfreight or barge premiums are included.

Tank size	Usable gallons (80%)	Fill cost at $3.85/gal	vs national ($2.67/gal)
100 gal	80 gal	$308	+$94
250 gal	200 gal	$770	+$235
500 gal	400 gal	$1540	+$470
1000 gal	800 gal	$3080	+$941

Compare to the national refill cost guide or check pricing in other states.

Alaska Heating Season & Annual Use

Alaska's residential heating season is the longest in the country, roughly seven months October through April for most of the state, with shoulder load extending into May and September in the interior and the North Slope. Peak demand falls in December, January and February when interior overnights routinely run -40F to -60F. Even Anchorage and Southeast see meaningful space-heating load through April.

Typical Alaska propane-heat households consume 800-1,200 gallons per year on the road system; interior cabins and large rural homes commonly run 1,500-2,500 gallons. A 2,000 sqft home in Anchorage handling space heat, water heat and range averages 1,000-1,200 gallons. A propane-only-for-cooking-and-water-heating household, with electric or wood for space heat, typically runs 200-400 gallons annually. Generator and remote-cabin loads add another 100-300 gallons.

Translated to dollars at the Alaska 2026 statewide reference: a 1,000 gallon road-system household pays around $3850 per year for fuel alone, before tank rental, delivery surcharges, or service contracts. That is roughly $1176 more than a comparable household in a national-average market and around $1670 more than a Texas household at the cheapest US end. A Bush Alaska household at the same gallon count can pay 1.5-2.5x that figure once airfreight and barge premiums load into the per-gallon rate.

HAP heating assistance for income-qualified households. The Alaska Heating Assistance Program (HAP), administered by the Alaska Department of Health, Division of Public Assistance, is the state's LIHEAP variant. Monthly income limits scale by household size (roughly $2,443 single, $6,742 six-person for the 2025-2026 season). Benefits use a points system that gives heavier weight to interior and Bush Alaska zones to reflect colder climate and higher fuel logistics costs. Season runs October 1 through April 30; one benefit per household per season. Apply via your local Public Assistance office, by mail, fax or email, or call the Heating Assistance Office at 800-470-3058. HAP is distinct from the Alaska Energy Assistance Program (AEAP), which funds efficiency upgrades rather than fuel deliveries.

Summer pre-buy is the single biggest lever. Pre-buying or capping in May-August routinely saves 10-20% on annual spend versus paying winter spot rates. Most Alaska road-system suppliers run pre-buy enrollment between May 1 and August 31; Southeast and Aleutian suppliers tend to set their windows around barge resupply scheduling. Read the fine print: cap-price contracts let you keep savings if wholesale falls; flat pre-buy locks you in either direction. Bush Alaska customers should ask about cylinder-swap pricing versus bulk delivery, the per-gallon-equivalent can differ by $1.50-$3.00.

Alaska vs Other West-Region States (2026)

State	Price/gal	500-gal refill (400 usable)	vs national ($2.67)
Hawaii	$4.15	$1660	+55%
Alaska (this page)	$3.85	$1540	+44%
California	$3.42	$1368	+28%
Washington	$3.02	$1208	+13%
Oregon	$2.98	$1192	+11%
Nevada	$2.95	$1180	+10%
New Mexico	$2.93	$1172	+10%
Arizona	$2.72	$1088	+2%
Idaho	$2.40	$959	-10%
Utah	$2.34	$935	-13%
Colorado	$2.30	$921	-14%
Wyoming	$2.27	$906	-15%
Montana	$2.12	$848	-21%

Alaska sits at or near the top of the West cluster, behind only Hawaii. California, Oregon and Washington run materially cheaper because Pacific Northwest rail and refinery proximity drop the structural cost floor. Mountain states (Idaho, Wyoming, Colorado, New Mexico, Utah) sit close to or below the national average thanks to closer pipeline access and denser supplier route economics. The full West region averages $2.88/gal, well above the $2.67 national mark, and Alaska's structural premium of 34% above that regional average reflects the import-only supply chain, not retailer margins.

Alaska Propane FAQ

Why is propane so expensive in Alaska?

Three structural reasons. First, Alaska has no in-state propane production. Every gallon arrives by rail tank car from Tacoma to Anchorage, by barge to Southeast and Aleutian ports, or by small barge and airfreight to Bush Alaska villages off the road system. Each transfer adds cost before any retailer markup. Second, the heating-customer base is thin and dispersed; ENSTAR Natural Gas dominates Anchorage and the Mat-Su valley, so propane is largely a peri-urban, off-grid, and rural fuel with low route density. Third, extreme cold (interior winters routinely run -40F to -60F overnight) drives high per-household burn rates, which compounds the per-gallon premium. The 2026 statewide average lands around $3.85/gal versus $2.67 national and $2.88 West regional. That is roughly 44% above national and 34% above the West regional average, and rural-route prices in interior or Bush Alaska can run 50-150% higher than the Anchorage retail rate.

Am I eligible for the Alaska Heating Assistance Program (HAP)?

HAP is Alaska's variant of the federal Low-Income Home Energy Assistance Program (LIHEAP), administered by the Alaska Department of Health, Division of Public Assistance. Eligibility uses monthly household income limits scaled by household size: roughly $2,443/month for a single person and $6,742/month for a six-person household for the 2025-2026 season, plus an additional $860 per added member. Households must also have at least $200 in annual out-of-pocket heating costs. Benefits are calculated on a points system that factors in your area of the state (interior and Bush Alaska earn higher point loadings to reflect colder climate and import-only fuel costs), heat type, and dwelling type. The season runs October 1 through April 30; one benefit per household per season. Apply through your local Public Assistance office, by mail, fax or email, or call the Heating Assistance Office at 800-470-3058 (or the DPA Virtual Contact Center at 800-478-7778). HAP is distinct from the Alaska Energy Assistance Program (AEAP), which covers efficiency upgrades rather than fuel deliveries.

How much do propane prices vary between Anchorage, Fairbanks, and Bush Alaska?

Materially. Anchorage and the Mat-Su Valley are the cheapest part of the state because propane arrives via rail tank car from Tacoma to a handful of South-central terminals; competitive supplier density and short last-mile delivery keep retail close to the statewide average around $3.85/gal. Fairbanks and the interior typically run $0.30-$0.80/gal above Anchorage because of trucking distance from rail terminals plus winter route surcharges. Bush Alaska villages off the road system (Kotzebue, Bethel, Nome, Dillingham, North Slope communities) rely on seasonal barge resupply and small air shipments, and retail prices commonly run 50-150% above the Anchorage rate. In the most remote villages a 100-gallon delivery can cost $600-$900 once airfreight surcharges are included. Always check whether your supplier is quoting "delivered" or "FOB terminal", and whether bulk-fill or 100-lb cylinder pricing applies.

Should I switch from heating oil or wood stove to propane in Alaska?

Depends on where you live. In Southeast Alaska and Anchorage, propane competes with heating oil and electric resistance, with propane usually winning on cleanliness and appliance flexibility (gas range, dryer, generator) but losing slightly on per-BTU cost. In Fairbanks and the interior, the realistic comparison is propane versus #1 heating oil versus a wood stove; cordwood remains the cheapest BTU in interior Alaska and many homes run a wood-stove primary plus a propane secondary for shoulder-season and overnight comfort. Propane delivers about 91,500 BTU per gallon versus 138,500 for #1 heating oil, so you burn roughly 1.5 gallons of propane to match 1 gallon of oil. At Alaska 2026 propane prices, that puts the per-BTU cost above heating oil and well above cordwood. The strongest case for propane in Alaska is appliance use (cooking, water heat, generators, vented heaters in cabins) and rural sites where bulk oil delivery is impractical, not whole-house space heat in interior climates.

Who licenses propane dealers and installers in Alaska?

The Alaska Department of Public Safety, Division of Fire and Life Safety (the State Fire Marshal's Office) adopts the Alaska LP-Gas Code based on NFPA 58 and oversees LP-gas operator certification, hazardous materials permits, and bulk-storage approvals statewide. The Regulatory Commission of Alaska (RCA) handles utility-scale energy regulation, but residential propane retail itself is governed by the Fire Marshal's office through the LP-Gas Code adoption. Bulk dealers and installers must comply with NFPA 58 storage and delivery standards, carry insurance, and meet operator-training qualifications. Before signing with a supplier, ask which operator certifications their delivery and installation staff hold; reputable Alaska dealers will list their PERC and state certifications without hesitation.

When is the cheapest time to fill my propane tank in Alaska?

Late spring through midsummer, roughly May through August. Propane wholesale prices follow a seasonal cycle: prices bottom after heating season ends and before next winter's pre-buy window opens, then climb sharply November through February. In Alaska the off-season window is shorter than in the Lower 48 because barge resupply scheduling matters; many Southeast and Aleutian suppliers run their pre-buy and cap-price contracts between May 1 and August 31, before the late-September barge runs price the next season's inventory. If your tank is below 30% in early September, fill it. Do not gamble on a January price drop in Alaska; supply tightness during the deepest cold months has historically widened the spread, not narrowed it. Households on auto-fill should set their reorder threshold at 30% rather than 20% to give the supplier route flexibility, which several Alaska operators reward with a $0.05-$0.10/gal off-peak discount.

How do I find a licensed propane supplier in Alaska?

Three reliable starting points. (1) The Alaska State Fire Marshal's Office at the Division of Fire and Life Safety (dps.alaska.gov/fire) publishes LP-Gas Code adoption details and operator certification information; only buy from dealers compliant with the Alaska LP-Gas Code (NFPA 58). (2) The Pacific Propane Gas Association (pacificpga.org) is the regional trade body covering Alaska, Hawaii, Oregon and Washington; their membership directory lists active propane marketers across the four-state region. (3) The National Propane Gas Association (npga.org) maintains a national licensed-dealer directory. Always get a written quote that itemises per-gallon price, delivery fee, tank rental, minimum-delivery surcharge, and any Bush Alaska airfreight or barge premium. In off-road communities, ask whether the quote is for bulk delivery or 100-lb cylinder pickup, since the per-gallon-equivalent cost differs sharply.