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

Colorado residential propane runs $2.30/gal in 2026, the cheapest in the West region and -14% versus the $2.67 national average. Wattenberg / DJ Basin NGL production keeps Colorado pricing close to PADD 4 wholesale even after Front Range, mountain, and Eastern Plains last-mile costs. Below: real fill-cost math, the high-altitude derate every Colorado installer must apply, the LEAP assistance route, and how to verify a propane dealer through CDLE Oil and Public Safety.

Latest EIA residential propane price

Source: EIA Colorado residential propane price survey. 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.

Colorado Propane Pricing Snapshot (2026)

Colorado residential avg

$2.30/gal

EIA SHOPP weekly survey, full-service residential delivery

vs national average

-14%

National avg $2.67/gal. CO pays $0.37 less per gallon than the US norm.

vs West region avg

-20%

Region avg $2.88/gal. CO is the cheapest West-region state, $0.58 below regional mark.

Annual fuel cost (1,000 gal)

$2302

Typical CO propane-heat household uses 800-1,200 gal/year before altitude derate adjustments

500-gallon refill (400 usable)

$921

Most common Front Range and mountain residential tank size

Pre-buy savings (May-Aug)

$300-$700/yr

Mountain second-home routes lock by mid-June; Front Range pre-buy slots fill July-Aug

Colorado is one of the cheaper US residential propane markets, sitting alongside Oklahoma, Texas, Iowa, and Wyoming as the lowest-priced cluster nationally. The driver is structural: Colorado is itself a propane producer, not just a consumer. The Wattenberg Field in the DJ Basin (Weld County) generates large NGL volumes that come off the Anadarko / Western Midstream gas-processing complex, and pipeline access to Bakken and Niobrara NGLs adds cheap PADD 4 supply on short haul distances. Even after mountain delivery surcharges, Colorado retailers price competitively with the cheapest US markets.

Why Colorado Propane Prices Sit Where They Do

Mountain states are not all priced the same. California, the Pacific Northwest, Hawaii, and Alaska sit well above the national average because of import-only logistics, distance to production, and limited storage. Colorado, by contrast, is a structurally cheap propane market. The drivers are durable and tied to in-state energy infrastructure, not seasonal swings.

1. In-state Wattenberg / DJ Basin NGL production. Weld County's Wattenberg Field is one of the most active natural-gas-liquids producing zones in the country. Anadarko (now Oxy) and Western Midstream operate the gas-processing complex that strips propane from raw natural-gas streams before pipeline delivery. That propane fraction enters the regional retail supply with essentially zero long-haul transport cost, Colorado retailers source supply from in-state plants rather than depending on Gulf Coast or Mid-Continent rail-to-truck networks.

2. PADD 4 (Rocky Mountain) supply proximity. Colorado sits inside EIA's PADD 4 Rocky Mountain supply district, the smallest and most production-rich PADD relative to its consumption. PADD 4 wholesale propane has been at the low end of US regional pricing through 2026 ($2.27/gal vs $2.93 PADD 3 Gulf Coast in the most recent EIA series). Pipeline access to Bakken NGLs (Hess, ONEOK Williston Basin) and Niobrara output from southeastern Wyoming further deepens the supply pool.

3. Front Range customer density supports route economics. The propane-heat customer base sits in a dense corridor across Boulder, Larimer, Douglas, Jefferson, Park, Teller, and El Paso counties, homes off the Xcel Energy natural-gas grid in foothill subdivisions, mountain communities, and unincorporated rural pockets within commuting distance of the Front Range cities. Dense routes mean low per-gallon overhead. Bobtail trucks deliver more gallons per mile, which keeps retailer margins healthy on lower per-gallon pricing.

4. Xcel natural-gas dominance limits scale, not pricing. Xcel Energy's natural-gas distribution network covers Denver, Boulder, and most of the urban Front Range, which keeps Colorado's residential propane base smaller than it would otherwise be at this population. Counterintuitively, that concentrates propane retail demand in well-defined sub-regions (mountain communities, second-home zones, Eastern Plains, foothill subdivisions) where retailers compete intensely for established routes. The result is a smaller market with sharper competition, which holds margins down.

5. Mountain delivery surcharges are real but bounded. The headwind on Colorado pricing is delivery cost into mountain communities and avalanche-zone supplier-route challenges on US-6, US-50, and the Berthoud / Loveland / Rabbit Ears passes. Resort suppliers in Aspen, Vail, Steamboat, Telluride, Breckenridge, and Crested Butte typically add a $25-$75 per-delivery surcharge. Even with those surcharges added back, Colorado mountain pricing still beats the West regional average because the wholesale base is so cheap.

How to Find a Licensed Propane Supplier in Colorado

Buying propane from an unlicensed dealer in Colorado is both a safety risk and a consumer-protection risk. The state regulates LP-Gas dealers, installers, and inspectors through the Colorado Department of Labor and Employment (CDLE), Division of Oil and Public Safety (OPS), and the LP-Gas Certificate of Competency is the statutory baseline. Our supplier-selection guidance below is the verification process we apply before publishing named suppliers, never sign a contract without running each step.

Verify against the OPS LP-Gas certificate list first

The Colorado Department of Labor and Employment, Division of Oil and Public Safety (OPS) holds the statutory authority for LP-Gas dealer, installer, and inspector certification under 8 CCR 1101-15. Every retailer that delivers, fills containers, installs piping, or services LP-Gas systems in Colorado must hold an active OPS Certificate of Competency. Search the certificate list at ops.colorado.gov/Petroleum/LiquefiedCompressedGases/LiquefiedPetroleumGas before signing any contract. If a company quoting you cannot show their OPS certificate number, that is a red flag.

Cross-check the Colorado Propane Gas Association directory

The Colorado Propane Gas Association (CPGA, copropane.com), founded in 1950 and headquartered in Arvada, represents propane marketers across the state. The CPGA member directory is the strongest signal of an established, route-dense Colorado retailer, companies that have invested in safety training, advocacy, and the Colorado Propane Education & Research Council. Membership is not mandatory, so absence is not disqualifying, but presence is a strong positive signal especially for Front Range and Western Slope coverage.

Use NPGA as a third-tier cross-reference

The National Propane Gas Association member directory at npga.org is a useful national cross-reference but does not replace OPS certificate verification. NPGA membership covers retailers nationwide and confirms the company operates within recognised industry safety and training norms.

Get three written quotes covering different supplier tiers

Always request written quotes from at least three suppliers: one national chain (AmeriGas, Suburban Propane), one mid-sized regional Colorado operator with in-state bulk storage, and one local independent specific to your county. Each tier prices differently. National chains offer predictable service but rarely the lowest per-gallon rate. Regional operators with their own storage near the DJ Basin can shave $0.20-$0.40/gal off chain pricing. Local independents with dense routes in a single county or sub-region often beat both on price but offer narrower geographic coverage.

Insist on contract itemisation before signing

Every quote should itemise: per-gallon price, delivery fee, tank rental (monthly or annual), minimum-delivery surcharge, off-route delivery surcharge for mountain or rural addresses, contract type (will-call, automatic delivery, pre-buy, cap-price), and tank ownership status. Mountain and Eastern Plains addresses frequently incur a $25-$75 per-delivery surcharge that is not visible in headline per-gallon pricing. Read the contract before agreeing to anything.

Verification sources. CDLE Division of Oil and Public Safety LP-Gas program for certificate-holder lookup. Colorado Propane Gas Association (copropane.com) for member directory of established Colorado marketers. National Propane Gas Association (npga.org) for national cross-reference.

Tier-1 supplier list coming. A hand-curated list of named Colorado 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 CDLE Oil and Public Safety LP-Gas certificate-holder list 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.

Colorado Propane Fill Costs by Tank Size (at $2.30/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 Colorado 2026 average. Real-world quotes vary 10-15% above or below the EIA average depending on supplier, contract type, and delivery frequency. Mountain and Eastern Plains addresses commonly add a $25-$75 per-delivery surcharge that is not reflected in the per-gallon math.

Tank size	Usable gallons (80%)	Fill cost at $2.30/gal	vs national ($2.67/gal)
100 gal (portable)	80 gal	$184.16	-$29.76
250 gal (small home)	200 gal	$460.40	-$74.40
500 gal (standard residential)	400 gal	$920.80	-$148.80
1,000 gal (large home / cold-climate)	800 gal	$1841.60	-$297.60

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

Colorado Heating Season, Annual Use, and the High-Altitude Reality

Colorado's residential heating season runs roughly six months on the Front Range (October through March) and seven to eight months in the high country (September through April, with shoulder demand on summer nights at elevation). Peak demand sits in December and January for the Front Range and December through February for mountain communities. Eastern Plains agricultural propane has a separate cycle dominated by August-November grain drying.

Typical Colorado propane-heat households consume 800-1,200 gallons per year for a Front Range single-family home, and 1,200-1,800 gallons for a mountain primary residence at 8,000+ feet. A 2,500 sqft home in Evergreen or Conifer with propane handling space heat, water heat, range, and dryer averages 1,000-1,300 gallons. Mountain second homes used 60-80 nights per year typically run 400-700 gallons.

Translated to dollars at the 2026 Colorado average: a 1,000-gallon household pays $2302 per year for fuel alone, before tank rental fees, delivery surcharges, or service contracts. That is around $372 cheaper than a national-average market and roughly $578 cheaper than a West-region average household.

Colorado LEAP for income-qualified households. The Colorado Low-income Energy Assistance Program (LEAP), administered by the Colorado Department of Human Services, Office of Economic Security, covers propane and other home heating fuels for households at or below 60% State Median Income (about $83,256/year for a household of four for the 2025/26 season). Approved households receive a benefit of up to $1,000 paid directly to the propane supplier, plus automatic eligibility for weatherization and emergency furnace repair. Application window: 1 November to 30 April. Apply via Colorado PEAK, call the HEAT HELP line at 1-866-HEAT-HELP (1-866-432-8435), or visit your county DHS office. Households not LEAP-eligible should also check Energy Outreach Colorado's Bill Payment Assistance program at energyoutreach.org.

The high-altitude appliance derate every Colorado installer must apply. NFPA 54 / ANSI Z223.1 requires gas appliances to be derated above 2,000 feet of elevation, roughly 4% of rated input per 1,000 feet. Denver (5,280 ft) needs a 13% derate, Aspen (8,000 ft) about 24%, Breckenridge (9,600 ft) about 30%, and Leadville (10,150 ft) about 33%. A 100,000 BTU/hr furnace installed in Aspen actually delivers about 76,000 BTU/hr after correct derate. If your installer sized your furnace, water heater, or range from sea-level rated input, the appliance is underpowered for the actual heating load, it runs longer cycles, uses more gas, and shortens equipment life. Always confirm your installer holds an OPS LP-Gas Certificate of Competency and asks for your install elevation before sizing.

Summer pre-buy is the single biggest lever. Pre-buying or capping in May-August routinely saves $300-$500 per year for a Front Range 1,000-gallon household and $400-$700 for a mountain primary residence. Resort suppliers run their pre-buy enrollment May through July; Front Range suppliers extend through August. Read the contract: cap-price contracts let you keep savings if wholesale falls; flat pre-buy locks you in either direction. Mountain second-home owners should lock by mid-June to secure delivery slots before peak summer construction-season pulls supplier capacity onto job sites.

Colorado vs Other West-Region States (2026)

State	Price/gal	500-gal refill (400 usable)	vs national ($2.67)
Hawaii	$4.15	$1660	+55%
Alaska	$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 (this page)	$2.30	$921	-14%
Wyoming	$2.27	$906	-15%
Montana	$2.12	$848	-21%

Colorado is the cheapest residential propane market in the West region in our 2026 dataset, ahead of Utah, Idaho, New Mexico, and Wyoming. The West regional average is $2.88/gal, dragged up by Hawaii (import-only), Alaska (logistics), and California / Pacific Northwest (limited refining capacity, longer supply chains). Mountain states with PADD 4 supply proximity (CO, ID, WY, MT) cluster well below the regional average; Colorado leads that cluster on the strength of its in-state Wattenberg / DJ Basin NGL production.

Colorado Propane FAQ

Why is propane cheaper in Colorado than in most of the West?

Colorado residential propane is $2.30/gal in the latest EIA SHOPP release, the cheapest of any West-region state in our 2026 dataset and -14% versus the $2.67 national average. The structural reason is in-state production. Colorado's Wattenberg Field in the DJ Basin (Weld County, north of Denver) is one of the country's most active natural-gas-liquids producing regions, and the propane fraction comes off the Anadarko / Western Midstream gas-processing complex right inside the state. Add pipeline access to Bakken NGLs from North Dakota and Niobrara output from southeastern Wyoming, and Colorado retailers source supply on much shorter haul distances than California, the Pacific Northwest, or Hawaii. The West regional average is $2.88/gal; Colorado runs $0.58 below that, -20% cheaper than the regional mark.

Am I eligible for Colorado LEAP (Low-income Energy Assistance Program)?

LEAP is Colorado's federally funded LIHEAP variant, administered by the Colorado Department of Human Services, Office of Economic Security. It is open to households at or below 60% of the State Median Income (roughly $83,256 per year for a household of four for the 2025/26 season). You must pay home heating costs directly to a fuel vendor or to a landlord as part of rent, and provide proof of lawful presence. Approved households get a benefit of up to $1,000 paid directly to the propane supplier, and approval automatically unlocks weatherization services and emergency furnace repair or replacement. The 2025/26 application window is 1 November 2025 to 30 April 2026. Apply via the Colorado PEAK portal (coloradopeak.secure.force.com), call the HEAT HELP line at 1-866-HEAT-HELP (1-866-432-8435), or visit your county Department of Human Services office. If you do not qualify for LEAP, Energy Outreach Colorado (energyoutreach.org) runs a Bill Payment Assistance program that fills the gap.

How do I find a licensed propane dealer in Colorado?

Colorado regulates LP-Gas dealers, installers, and inspectors through the Colorado Department of Labor and Employment (CDLE), Division of Oil and Public Safety (OPS). The OPS LP-Gas program (ops.colorado.gov/Petroleum/LiquefiedCompressedGases/LiquefiedPetroleumGas) maintains the official certificate-holder list, every Colorado propane dealer that delivers, installs, or services LP-Gas systems must hold an active OPS certificate. Always verify the company quoting you appears on the OPS list before signing. The Colorado Propane Gas Association (copropane.com), founded in 1950 and based in Arvada, also publishes a member directory of established marketers across the state. As a third cross-check, the National Propane Gas Association (npga.org) lists Colorado member retailers. If a company is missing from all three, walk away.

When should ski-resort second-home owners pre-buy propane?

Mountain second-home demand cycles drive Colorado's tightest pricing windows in Aspen, Vail, Steamboat Springs, Telluride, Breckenridge, Crested Butte, and the Gunnison Valley. The play is the same as for primary residences but the timing is more aggressive: lock in your cap-price or pre-buy contract by mid-June, before peak summer construction-season demand pulls supplier route capacity onto job sites. Resort suppliers run their pre-buy enrollment May through July, and slots fill earlier than in the Front Range because mountain delivery routes are smaller and capacity-constrained. Households that fill in October at full-rate delivery instead of locking in summer routinely pay an extra $0.40-$0.70/gal. For a typical 1,000-gallon mountain household, that is $400-$700 per season. If your tank is below 50% in early November, get on the auto-fill list before Thanksgiving, supplier routes tighten dramatically once the ski season opens and avalanche-zone closures start gating delivery windows on US-6, US-50, and the Rabbit Ears / Berthoud / Loveland passes.

Do I need a high-altitude derate for propane appliances in Colorado?

Yes, and most installers under-spec it. NFPA 54 / ANSI Z223.1 requires gas appliances to be derated when installed above 2,000 feet of elevation: roughly 4% of rated input per 1,000 feet of altitude above sea level. Denver sits at 5,280 feet (a 13% derate), Breckenridge at 9,600 feet (about 30% derate), Leadville at 10,150 feet (about 33%), and Aspen at 8,000 feet (about 24%). A 100,000 BTU/hr furnace installed in Aspen actually delivers about 76,000 BTU/hr after correct derate. The practical implication: if your contractor sized your furnace, water heater, or range from sea-level rated input, the appliance is underpowered for the actual heating load and runs longer cycles, which increases gas consumption and shortens equipment life. Always confirm your installer holds an OPS LP-Gas Certificate of Competency and asks for your install elevation before sizing. Colorado-specific orifice kits are required from most manufacturers above 4,500 feet.

Should I switch from propane to electric in mountain communities?

For Front Range and most mountain locations, propane remains cheaper per delivered BTU than resistive electric heat at current Colorado utility rates, even at the $2.30/gal CO average. The economic question changes when you look at cold-climate heat pumps. Modern cold-climate air-source heat pumps maintain 100% rated capacity to about -5°F and deliver useful output to -15°F, which covers most of the Front Range and inhabited mountain towns through a typical winter. Xcel Energy's residential rate plus a heat pump's coefficient of performance of 2.5-3.5 usually beats propane on operating cost in Boulder, Denver, Colorado Springs, and Fort Collins, and Colorado's heat-pump rebates (up to $1,500 plus federal 25C credit) shorten payback to 6-9 years. In the high country (Leadville, Crested Butte, Steamboat) where -20°F nights are routine, dual-fuel hybrid systems that lean on propane below the heat-pump's economic balance point still win. Run the math against your specific elevation, design temperature, and utility rate before committing.

What about agricultural propane on the Eastern Plains?

The Eastern Plains (Yuma, Phillips, Sedgwick, Logan, Weld, Morgan, Washington, Lincoln, Kit Carson, Cheyenne, Kiowa, Prowers, Bent, and Baca counties) are an entirely different market from residential heat. Irrigation engines, grain drying for corn and wheat, and crop heating run high-volume bulk propane through the harvest cycle (August-November). Agricultural pricing is wholesale-indexed and contracts are typically negotiated annually with regional bulk plant operators rather than the residential delivery network. Volume thresholds matter: most ag dealers offer materially better per-gallon pricing above 5,000 gallons per year. Because the Eastern Plains sit on the same PADD 4 (Rocky Mountain) supply that feeds the Front Range plus access to Bakken NGLs via the rail-served terminals at Sterling and Limon, ag propane in these counties is among the cheapest in the entire country during off-peak months. Talk to your local farm cooperative before going direct, coop volume aggregation often beats independent quotes.