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

Iowa residential propane runs $1.66/gal in 2026, roughly 38% below the national average and 20% below the Midwest regional norm. Iowa is one of the cheapest states in the country for residential propane, and one of the heaviest agricultural users. This is the no-spin breakdown: real fill math, the harvest grain-drying demand picture, LIHEAP through Iowa HHS, and how to find a licensed supplier.

Latest EIA residential propane price

Source: EIA Iowa 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.

Iowa Propane Pricing Snapshot (2026)

Iowa residential avg

$1.66/gal

EIA SHOPP weekly survey, full-service residential delivery

vs national average

-38%

National avg $2.67/gal. Iowa pays $1.01 less per gallon.

vs Midwest region avg

-20%

Region avg $2.07/gal. Iowa runs below the regional norm.

Annual fuel cost (1,000 gal)

$1660

Typical Iowa propane-heat household uses 800-1,200 gal/year

500-gallon refill (400 usable)

$664

Most common residential and small-farm tank size in Iowa

Pre-buy savings (May-Aug)

$200-$400/yr

Lock-in or cap-price contracts beat winter spot pricing

Iowa is one of the cheapest US markets for residential propane, behind Texas ($2.99/gal) and a handful of Gulf and Plains states. The structural advantages are short logistics from PADD 2 storage at Conway, Kansas, year-round demand from agriculture that supports route density, and a mature competitive supplier network across both metro and rural markets.

Why Iowa Propane Prices Are Low

Iowa consistently sits in the bottom decile of US residential propane prices. The drivers are structural and durable. They will not normalise upward without a fundamental shift in PADD 2 supply economics or rural Iowa propane consumption.

1. Short haul from PADD 2 storage. Roughly 90% of US propane originates from natural gas processing in Texas, Louisiana, Oklahoma, and the Marcellus/Utica shale. Iowa pulls primarily from PADD 2 (Midwest) inventories anchored at the Conway, Kansas underground storage hub and via pipeline corridors out of Mont Belvieu, Texas. Distance from supply is short relative to the Northeast or West Coast, and a state of fewer than 56,000 square miles is fully reachable within a one-day bobtail haul from a handful of in-state and Missouri-border terminals.

2. Year-round agricultural demand. Iowa is the top US corn producer. October-November grain drying alone can match or exceed winter residential heating demand in a wet harvest year, propane-fired grain dryers run continuously on hundreds of thousands of acres. Add hog and poultry barn heat (Iowa is the top US hog state), greenhouse heat, and crop-burner field operations, and Iowa supports propane suppliers through the spring-summer trough that depresses other regions. That demand smoothness lets dealers run tighter margins.

3. Dense supplier competition statewide. Iowa has hundreds of licensed propane dealers, from large regional operators serving Des Moines, Cedar Rapids, Davenport, Sioux City, and Iowa City out to small-town family-owned bulk plants in every rural county. The Iowa Propane Gas Association membership reflects the depth: most county seats have at least three competing dealers within service range, which keeps per-gallon margins compressed.

4. Caveat, harvest crunch can spike rural pricing. The same agricultural demand that supports route density can briefly tighten rural inventories. The 2019 wet harvest is the textbook case: late planting + early cold snap + grain drying load + livestock load all hit at once, and rural Iowa saw delivery delays and short-term per-gallon spikes. Iowa Department of Agriculture has issued advance-order advisories in multiple recent autumns. Topping up your residential tank in late August or September is the simplest hedge.

Iowa Propane Fill Costs by Tank Size (at $1.66/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 Iowa 2026 average. Real-world quotes vary 10-15% above or below the EIA average depending on supplier, contract type, route density, and delivery frequency. Auto-fill customers typically pay $0.10-$0.20/gal less than will-call.

Tank size	Usable gallons (80%)	Fill cost at $1.66/gal	vs national ($2.67/gal)
100 gal	80 gal	$133	-$81
250 gal	200 gal	$332	-$203
500 gal	400 gal	$664	-$406
1000 gal	800 gal	$1328	-$811

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

Iowa Heating Season, Harvest, and Annual Use

Iowa's residential heating season runs roughly five months, November through March, with peak demand in January and February when overnight lows routinely sit below 0°F across the northern tier (Mason City, Decorah, Sioux Center). Spring (April-May) and fall (September-October) shoulder seasons see modest space-heat demand on cold nights. June-August is essentially water-heating and cooking only for propane-heated households.

Typical Iowa propane-heat households consume 800-1,200 gallons per year, depending on house size, insulation, and how much of the load is propane versus electric. A 2,400 sqft farmhouse outside Ames with propane handling space heat, water heat, range, dryer, and a backup generator averages 1,000-1,200 gallons. A propane-only-for-cooking-and-water-heating household, with electric for space heat, runs 150-300 gallons annually. At the 2026 Iowa average, a 1,000 gallon household pays $1660 per year for fuel alone, about $1014 less than a comparable household in a national-average market and roughly $-1329 more than a Texas household at the cheapest US end.

October-November grain drying is Iowa's second peak. Iowa is the top corn-producing state in the country. Wet corn off the field in October typically runs 18-22% moisture and must drop to 13-15% before it can go in the bin. Propane-fired continuous-flow and bin-batch dryers do that work on most Iowa acres. Natural in-field drying rates fall from roughly 4.5 moisture points per week in September to about 1.0 by November, which forces mechanical drying. In a wet harvest year, statewide grain-drying load can match or exceed peak-winter residential heating load. Iowa Department of Agriculture and Land Stewardship issues advance-order advisories most years.

LIHEAP through Iowa HHS for income-qualified households. The Iowa Low-Income Home Energy Assistance Program is administered by Iowa Department of Health and Human Services through Community Action Agencies in every county. Eligibility for the 2025-2026 season is set at or below 200% of federal poverty guidelines (single-person up to ~$31,300; four-person up to ~$64,300). The benefit is paid directly to your propane supplier toward winter delivery cost. Apply online at liheap-apply.hhs.iowa.gov, or call 515-776-8871 to find your local Community Action Agency. Applications open October 1 for households with a member age 60+ or disabled, November 1 for everyone else, through April 30.

Pre-buy is the single biggest controllable lever. Pre-buying or capping in May-August routinely saves $200-$400 per year for a 1,000-gallon Iowa household versus paying winter spot rates. Most Iowa dealers run pre-buy enrollment between May and late August, closing before the harvest grain-drying surge. Read the contract: cap-price lets you keep savings if wholesale falls; flat pre-buy locks you in either direction. If you can only do one thing in 2026 to lower your propane bill, sign a summer cap-price contract.

How to Find a Licensed Propane Supplier in Iowa

Buying propane from an unlicensed dealer is both a safety risk and a consumer-protection risk. Licensed Iowa dealers must comply with NFPA 58 storage and delivery standards, meet Iowa Department of Agriculture metering specifications, carry insurance, and follow Iowa Code rules on tank ownership disclosure and contract terms. Three reliable starting points:

Iowa Department of Agriculture and Land Stewardship, Weights and Measures Bureau at iowaagriculture.gov/weights-and-measures. The bureau regulates propane dealers under Iowa Code Chapter 215 (LP gas measurement) and Chapter 226 (liquefied petroleum gas), licenses and inspects every commercial propane meter in the state, and runs the Fuel Quality Assurance Program. Phone: 515-725-1492.
Iowa Propane Gas Association (IPGA) at iapropane.org. The state trade association of propane retailers, suppliers, and equipment dealers. Member dealers must meet IPGA safety and training standards. IPGA publishes a yearly membership directory; office at 4942 Pleasant Street, West Des Moines, IA 50266. Phone: 515-564-1260.
National Propane Gas Association (NPGA) at npga.org. The national trade association lists licensed propane retailers across all 50 states. Useful as a cross-reference if a dealer claims membership.

Always get a written quote that itemises per-gallon price, delivery fee, tank rental (if applicable), minimum-delivery surcharge, and any monthly tank fee. Compare two or three quotes before committing. Per-gallon spreads of $0.30-$0.50 within the same Iowa county are routine.

Tier-1 supplier list coming. A hand-curated list of named Iowa 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 Iowa Department of Agriculture licensed-dealer 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.

Iowa vs Other Midwest States (2026)

State	Price/gal	500-gal refill (400 usable)	vs national ($2.67)
Nebraska	$1.64	$657	-39%
Iowa (this page)	$1.66	$664	-38%
North Dakota	$1.70	$680	-36%
South Dakota	$1.84	$736	-31%
Kansas	$1.98	$791	-26%
Illinois	$2.03	$810	-24%
Minnesota	$2.06	$822	-23%
Wisconsin	$2.07	$826	-23%
Missouri	$2.21	$884	-17%
Michigan	$2.37	$948	-11%
Indiana	$2.63	$1054	-1%
Ohio	$2.69	$1078	+1%
National average	$2.67	$1070	0%

Iowa, Nebraska, and Kansas anchor the cheap end of the Midwest cluster, all three sit in the western Corn Belt with short logistics from Conway, Kansas storage and dense agricultural demand. Illinois and the Great Lakes states (Michigan, Ohio, Indiana) run a bit higher because of longer pipeline distance and a smaller agricultural propane share. The full Midwest region averages $2.07/gal, well below the $2.67 national mark.

Iowa Propane FAQ

How much does propane cost per gallon in Iowa?

Iowa residential propane averages $1.66/gal in the latest EIA State Heating Oil and Propane Program (SHOPP) survey. That is roughly 38% below the $2.67 national average and 20% below the $2.07 Midwest regional average. The figure is a statewide retail mean. What you actually pay varies by route density (Des Moines, Cedar Rapids, and Davenport metros tend to be cheapest), contract type (will-call vs auto-fill vs pre-buy vs cap-price), and tank ownership status. Always pull two or three written quotes within your county before signing, per-gallon spreads of $0.30-$0.50 between dealers in the same zip are common in Iowa.

Why is Iowa propane cheaper than most US states?

Iowa sits inside PADD 2, the Midwest distribution district, with relatively short logistics from the major Conway, Kansas storage hub and from Mont Belvieu, Texas via pipeline-to-rail-to-truck. Iowa also has unusually deep propane demand year round: agricultural grain drying in October and November, livestock barn heat through winter, residential space heat from November through March, and rural water-heating loads. That dense, year-round demand keeps supplier route economics strong, supports many small competing local dealers, and pulls per-gallon margins down. Add in shorter haul distance versus the Northeast or West Coast, and Iowa lands at $1.66/gal versus the $2.67 national mean, a 38% discount that has been structural for at least a decade.

How much does it cost to fill a propane tank in Iowa?

At Iowa's $1.66/gal residential rate, filling a 500-gallon tank to its 80%-rule capacity (400 usable gallons) costs about $664.00. A 250-gallon tank fills for about $332.00, a 1,000-gallon farm or large-home tank fills for about $1328.00, and a 100-gallon portable cylinder fills for about $132.80. Tanks fill to 80% rather than 100% so liquid propane has thermal-expansion headroom in summer heat. That 80% rule is NFPA 58 federal safety code, not a supplier markup.

When does propane peak in Iowa, winter or harvest?

Both, and the harvest peak often hits Iowa harder than the winter peak. October and November are corn-drying season: wet corn coming off the field has to drop from 18-22% moisture down to 13-15% before it can be stored, and propane-fired grain dryers do that work on hundreds of thousands of acres across the state. Iowa Department of Agriculture and Land Stewardship has issued multiple advisories in recent harvest seasons urging farmers and rural residents to place orders early because grain-drying load can briefly exceed peak winter heating load. The second peak is January-February residential heating demand. The smart play if you are a residential customer in Iowa: top up your tank in late August or September, before harvest demand pulls regional inventories down and before the winter pre-buy window closes.

Does Iowa have a LIHEAP program for propane customers?

Yes. Iowa runs the federal Low-Income Home Energy Assistance Program through the Iowa Department of Health and Human Services. The program is administered locally by Community Action Agencies in each county. For the 2025-2026 heating season, eligibility is set at or below 200% of federal poverty guidelines (a single-person household qualifies up to roughly $31,300 annual income; a four-person household up to roughly $64,300). The benefit is paid directly to your propane supplier, not to you. Applications open October 1 for households with a member age 60+ or with a disability, and November 1 for everyone else, running through April 30. Apply online at liheap-apply.hhs.iowa.gov or contact your local Community Action Agency, call the state Community Action Agencies Unit at 515-776-8871 if you need help locating yours.

How do I find a licensed propane supplier in Iowa?

Three reliable starting points. (1) Iowa Department of Agriculture and Land Stewardship Weights and Measures Bureau regulates propane dealers under Iowa Code Chapter 215 (LP gas measurement) and Chapter 226 (liquefied petroleum gas), the bureau inspects every commercial propane meter in the state and runs the Fuel Quality Assurance Program. Reach the bureau at 515-725-1492 or via iowaagriculture.gov/weights-and-measures. (2) The Iowa Propane Gas Association (IPGA) at iapropane.org is the state trade body; member dealers must meet IPGA safety and training standards, and the association publishes a yearly directory. IPGA is at 4942 Pleasant Street, West Des Moines, IA 50266, phone 515-564-1260. (3) The National Propane Gas Association directory at npga.org cross-references licensed retailers nationally. Always insist on a written quote that itemises per-gallon price, delivery fee, tank rental, minimum-delivery surcharge, and any monthly tank fee before signing.

When is the cheapest time to buy propane in Iowa?

Late spring through midsummer (May through August). Iowa wholesale rack pricing typically bottoms in June and July, when refinery output is high, residential demand is near zero, and grain-drying season is still months away. Most Iowa dealers open their pre-buy and cap-price contract windows in May, with enrollment closing in late August or early September before harvest demand spikes. A typical Iowa pre-buy contract in recent years has locked rates $0.20-$0.40/gal below winter spot prices. On a 1,000-gallon-per-year household, that is $200-$400 saved annually. Read the fine print: a flat pre-buy commits you to deliveries at the locked rate either direction, while a cap-price contract sets a ceiling but lets you benefit if the market falls.