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

Minnesota residential propane runs $2.06/gal in 2026, roughly 23% below the $2.67 national average and among the cheapest cold-climate markets in the country. This is the no-spin breakdown: real supplier list, fill-by-tank-size math, the MN Energy Assistance Program, the 2014 shortage lessons that still shape buying behavior, and how MN's PADD 2 storage advantage and 250,000+ propane households keep prices low even with the longest US heating season.

Latest EIA residential propane price

Source: EIA Minnesota 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.

Minnesota Propane Pricing Snapshot (2026)

Minnesota residential avg

$2.06/gal

EIA 2026 weekly survey, full-service residential delivery

vs national average

-23%

National avg $2.67/gal. MN saves $0.62 per gallon vs the US average.

vs Midwest region avg

-1%

Region avg $2.07/gal. Midwest is the cheapest US region for residential propane.

Annual fuel cost (1,500 gal)

$3084

Typical MN propane-heat household burns 1,200-1,800 gal/yr in Greater MN

500-gallon refill (400 usable)

$822

Most common residential tank size in MN

Pre-buy savings (May-Aug)

$300-$750/yr

Cap-price or summer-fill contracts beat winter spot pricing on a 1,500 gal household

Minnesota is a cheap-for-its-cold-climate propane market. Despite a seven-month heating season and January temperatures that routinely run 20+ degrees below the US average, MN sits in the cheap cluster of the Midwest alongside Iowa, Nebraska, and the Dakotas. The drivers are PADD 2 storage proximity, 250,000+ propane households giving suppliers route density, and the post-2014 supply-policy framework that limits worst-case winter price exposure.

Why Minnesota Propane Prices Sit Where They Do

MN consistently sits in the cheap cluster of the Midwest, despite the longest residential heating season in the lower 48. The drivers are structural: storage geography, customer density, agricultural demand, and the supply-policy framework built after the 2014 shortage. Understanding these explains why MN is cheap today and why winter spot risk is still real.

1. PADD 2 storage proximity. MN sits inside the EIA's PADD 2 (Midwest), the cheapest US region for residential propane. Supply moves from Mt. Belvieu (Texas) by pipeline to the Conway, Kansas hub, then north on the Cochin and Enterprise pipeline corridors to terminals at Mankato, Benson, and Albany. Short trucking distances from those terminals to MN homes and farms keep per-gallon delivery cost low compared with Northeast states paying for cross-country rail.

2. 250,000+ propane households give suppliers route density. Minnesota has one of the highest absolute counts of propane-heated households in the US, behind only Pennsylvania and Ohio. Roughly 10% of the housing stock heats with propane, concentrated in rural Greater MN. High customer density per supplier route lets MN dealers run delivery economics that small-customer-base states cannot match. More customers per stop means lower per-gallon overhead, which feeds back into competitive retail pricing.

3. 100,000+ farms create supply-side scale. Minnesota agriculture uses 50-100 million gallons of propane in a typical October-November grain-drying season. That demand forces MN terminals to carry far higher inventory volumes than a heating-only state of similar population. Heading into winter, MN terminals are stocked to a level that gives residential propane buyers genuine supply security, not just price-driven scarcity. The downside: when the corn-dry surge collides with an early cold snap, as in 2013, regional inventory drains fast.

4. Post-2014 supply-policy framework. The 2013-2014 propane shortage was traumatic for Minnesota: retail prices spiked to $4.50+/gal at peak, and some rural households faced runouts. The state response was substantial. The MN Office of Pipeline Safety adopted supply-monitoring reforms, regional propane storage was expanded, dealer storage requirements were tightened, and EAP added crisis-fund flexibility for fuel emergencies. Pre-buy program adoption also surged at the household level, and it has stayed high since. The combined effect is real downside protection that limits MN's worst-case winter price exposure compared with states that lack similar oversight.

How to Find a Licensed Propane Supplier in Minnesota

Buying propane from an unlicensed dealer is both a safety risk and a consumer-protection risk: licensed dealers must comply with NFPA 58 storage and delivery standards, carry insurance, and follow Minnesota-specific bulk-plant operator certification under the Department of Labor and Industry. Three reliable starting points:

Minnesota Department of Labor and Industry license-and-registration lookup at dli.mn.gov/license-and-registration-lookup, verify any supplier you are quoted has an active LP-Gas Bulk Plant Operator certification.
Minnesota Propane Association (MPA) member directory at discoverpropanemn.com, the state trade body lists active MN propane retailers.
National Propane Gas Association (NPGA) member directory at npga.org, the national trade association lists 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 monthly tank fee. Compare two or three quotes before committing. Per-gallon spreads of 30 to 50 cents within the same Minnesota county are common, especially between national chains and local independents in rural counties.

Tier-1 supplier list coming. A hand-curated list of named Minnesota 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 Minnesota DLI license-and-registration lookup 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.

Minnesota Propane Fill Costs by Tank Size (at $2.06/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 MN 2026 average. Real-world quotes vary 10-15% above or below the EIA average depending on supplier, contract type, and delivery frequency.

Tank size	Usable gallons (80%)	Fill cost at $2.06/gal	vs national ($2.67/gal)
100 gal	80 gal	$164	-$49
250 gal	200 gal	$411	-$124
500 gal	400 gal	$822	-$247
1000 gal	800 gal	$1645	-$494

A typical MN propane-heat household in Greater Minnesota burns 1,200-1,800 gallons per year because of the seven-month heating season. That is three to four full fills of a 500-gallon tank or two fills of a 1,000-gallon tank. Annual fuel spend at the current MN average runs $2467 to $3701, roughly $927 less per year than the same household would pay at the national average. Compare to the national refill cost guide or check pricing in other states.

Minnesota Heating Season, Pre-Buy Strategy & Energy Assistance

Minnesota's residential heating season runs roughly seven months, October through April, with peak demand in December-February. Greater MN winter overnight lows routinely hit -20F or colder, and the propane load reflects that. Spring (April-May) and fall (September-October) shoulder seasons see modest space-heating demand on cold nights, while June-August is essentially water-heating, cooking, and any backup-generator load only.

Typical MN propane-heat households consume 1,200-1,800 gallons per year, depending on house size, insulation, and how much of the load is propane versus another fuel. A 2,400 sqft home in central MN with propane handling space heat, water heat, range, and dryer averages 1,400-1,600 gallons. A propane-only-for-cooking-and-water-heating household, with electric or natural gas for space heat, runs 200-400 gallons annually.

Translated to dollars at the 2026 MN average: a 1,500-gallon household pays $3084 per year for fuel alone, before tank rental fees, delivery surcharges, or service contracts. That is roughly $927 less than the same household would pay at the national average and $2451 less than a Connecticut household at the high end of the US distribution.

Avoid the October corn-dry surge. Minnesota commercial grain dryers consume 50-100 million gallons of propane during the October-November harvest. In wet years like 2013, demand can spike 2x-3x normal volumes within weeks, draining regional inventory and pushing retail rates up sharply. The household play: top your tank to 80% by mid-September, before corn-dry inventory pull begins, and ride the heating season on a pre-buy or cap-price contract from there.

EAP assistance for income-qualified households. The Minnesota Energy Assistance Program (EAP) is the state's federal-LIHEAP-funded program, administered by the Department of Commerce, Energy Resources Division. Income eligibility is set at 60% of state median income, which MN raised above the federal LIHEAP minimum so a family of four can earn up to roughly $72,000 and qualify. Primary Heat benefits typically run $300-$1,800 per household and are paid directly to your propane supplier. Crisis benefits cover emergency fuel deliveries, runouts, and no-heat situations year-round. Apply at energy-assistance.web.commerce.state.mn.us or call 651-539-1500 for a paper application. The 2025-2026 program runs through May 31, 2026.

Summer pre-buy is the single biggest lever. Pre-buying or capping in May-August routinely saves $300-$750 per year for a 1,500-gallon household versus paying winter spot rates. After the 2014 shortage, pre-buy adoption surged in MN and most major suppliers (Federated Co-ops, Lakes Gas, AmeriGas, Suburban, Ferrellgas) run summer-fill or prebuy enrollment between May 1 and August 31. Read the fine print: cap-price contracts let you keep savings if wholesale falls; flat pre-buy locks you in either direction.

Minnesota vs Other Midwest States (2026)

State	Price/gal	500-gal refill (400 usable)	vs national ($2.67)
Nebraska	$1.64	$657	-39%
Iowa	$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 (this page)	$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%

Minnesota sits in the cheap cluster of the Midwest at $2.06/gal, alongside Nebraska, Iowa, the Dakotas, Kansas, and Illinois. Nebraska, Iowa, and the Dakotas are slightly cheaper because of even shorter trucking distances to the Conway, Kansas hub and lower per-customer load. The full Midwest region averages $2.07/gal, all of which sits well below the $2.67 national mark. Compare to the Northeast at $3.69/gal or the South at $3.26/gal for the full geographic picture.

Minnesota Propane FAQ

How do I apply for the Minnesota Energy Assistance Program (EAP)?

EAP is Minnesota's federal-LIHEAP-funded program, administered by the Minnesota Department of Commerce, Energy Resources Division, through a network of local service providers (mostly Community Action Agencies and tribal nations). Apply online at energy-assistance.web.commerce.state.mn.us, or request a paper application from the Department of Commerce at 651-539-1500. Income eligibility is set at 60% of state median income, which Minnesota raised above the federal LIHEAP minimum so a family of four can earn up to roughly $72,000 and still qualify in the 2025-2026 program year. Primary Heat benefits typically range from $300 to $1,800 per household and are paid directly to your propane supplier, not to you. The program runs October 1 through May 31; deadline to apply for the 2025-2026 winter is May 31, 2026. Crisis benefits are available year-round for households facing fuel runout, disconnect notices, or no-heat emergencies. Apply early. Funds are first-come, first-served and rural propane households often face delivery delays in peak January-February demand even with EAP approval.

Who has the cheapest propane in Minnesota?

There is no single cheapest supplier statewide. Pricing varies by ZIP code, contract type, and delivery frequency. In Minnesota's residential market, member-owned cooperatives like Federated Co-ops Inc (Princeton) and CHS Inc affiliates often beat national chains by $0.20-$0.40/gal because they return margin to members rather than shareholders. Regional player Lakes Gas (Upper Midwest, 60+ locations) is competitive on automatic-delivery contracts. Local independents in central MN and the Iron Range, like Quality Propane of MN (Kellogg), Beaudry Oil & Propane, Como Oil & Propane (Duluth), and Rahn's Oil & Propane, often have the lowest will-call rates because of dense local routes. Always quote at least three suppliers, including one national (AmeriGas, Suburban, Ferrellgas), one regional or cooperative, and one local independent in your county. Pre-buy or cap-price contracts signed in May-August routinely save $0.30-$0.60/gal versus winter spot rates.

Why is Minnesota propane cheaper than the national average even though winters are so cold?

Minnesota residential propane runs $2.06/gal in 2026, roughly 23% below the $2.67 national average. Three structural reasons. First, MN sits inside PADD 2 (Midwest), the cheapest US propane region, with direct pipeline access to the Conway, Kansas hub and short trucking distance to terminals at Mankato, Benson, and Albany. Second, Minnesota has roughly 250,000+ propane-heated households, one of the highest absolute counts in the country, which gives suppliers route density and economies of scale that a small-customer-base state cannot match. Third, 100,000+ MN farms use propane for grain drying, especially during the September-November corn harvest, so wholesale terminals carry far higher inventory volumes than in heating-only states. Higher inventory plus competitive cooperative-and-national supplier mix keeps retail spreads tight. Where MN does pay extra: winter spot premiums during cold snaps and any will-call delivery in January-February.

How do I check whether a Minnesota propane supplier is properly licensed?

Minnesota regulates propane bulk plants and propane handling under the Minnesota Department of Labor and Industry (DLI), Construction Codes and Licensing Division, in accordance with Minnesota's adoption of NFPA 58 (Liquefied Petroleum Gas Code) through the state's Mechanical and Fuel Gas Code. You can verify a supplier's status using DLI's License and Registration Lookup at dli.mn.gov/license-and-registration-lookup. Search by company name to confirm active credentials. You can also cross-reference against the Minnesota Propane Association (MPA) member directory at discoverpropanemn.com; MPA members commit to a code of practices and continuing education through MPA-administered Certified Employee Training Program (CETP) credentials. For complaints about a propane company's practices, contact DLI Consumer Services or, on consumer-pricing matters, the Minnesota Department of Commerce.

What did the 2014 propane shortage teach Minnesota households about winter buying?

The 2013-2014 winter was a defining trauma for Minnesota propane. A wet 2013 corn harvest in October pulled massive volumes into commercial grain dryers; the Cochin Pipeline reversal that same year cut a major eastward propane flow into the Upper Midwest; then Polar Vortex cold snaps in January 2014 drove regional inventory to multi-decade lows. Retail propane in Minnesota spiked from autumn lows around $1.80/gal to over $4.50/gal at the peak, and some rural households faced runouts. Governor Dayton declared a propane emergency, the federal government waived hours-of-service rules for propane truckers, and MN later adopted supply-monitoring reforms through the state Office of Pipeline Safety, expanded regional storage, and added crisis-fund flexibility to EAP. Practical lessons that still apply: never let your tank drop below 30% in heating season, sign a pre-buy or cap-price contract in May-August before the autumn corn-dry pull, top up to 80% by mid-September, and avoid will-call deliveries during January-February cold snaps when emergency premiums of $0.50-$1.50/gal over the state average are common.

How does the October corn-drying season affect Minnesota propane prices?

Minnesota has 100,000+ farms, and an estimated 50-100 million gallons of propane move through commercial grain dryers during the October-November harvest in a typical year. In wet harvest years like 2013, demand can spike 2x-3x normal volumes within weeks. That demand pull happens at exactly the moment the residential heating season is starting, so terminals in Mankato, Albany, and Benson see inventory drawdowns just as suppliers are filling residential tanks for winter. Retail propane prices in MN typically bottom in May-August, hold flat through early September, and start rising in late September as commercial dryers begin pre-buying for harvest. By mid-October, will-call rates are often $0.20-$0.40/gal above summer lows. The household play: top your tank to 80% by mid-September, before corn-dry inventory pull begins, then ride the heating season on automatic delivery from a pre-buy or cap-price contract.

Does summer pre-buy actually save money in Minnesota?

Yes, consistently and meaningfully. Minnesota wholesale propane prices typically bottom in June-August, when refinery output is high, agricultural demand is near zero, and residential heating demand is essentially nil. MN suppliers running pre-buy or budget-lock programs in May-August commonly offer $0.20-$0.50/gal below the eventual heating-season spot rate. On a 1,500-gallon annual usage (typical for a propane-heated home in Greater Minnesota), that is $300-$750/year saved. Federated Co-ops, Lakes Gas, AmeriGas, Ferrellgas, and Suburban all offer some flavor of pre-buy or summer-fill program. Read the contract before signing: cap-price contracts let you benefit if prices fall, while strict pre-buy locks you in regardless. Ask whether the contract is per-fill-up, per-gallon, or capped, and whether unused pre-paid gallons roll over to the next season. Given Minnesota's history of winter price spikes, even a basic cap-price contract is meaningful insurance.