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

Montana residential propane runs $2.12/gal in 2026, -21% versus the $2.67 national average and among the cheapest of any West-region state. Billings refining, Bakken NGL access, in-state production, and natural-gas competition keep retail rates low. Below: real fill math, the structural reasons Montana sits where it does, LIHEAP guidance, and how to find a licensed supplier.

Latest EIA residential propane price

Source: EIA Montana 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.

Montana Propane Pricing Snapshot (2026)

Montana residential avg

$2.12/gal

EIA SHOPP weekly survey, statewide retail average

vs national average

-21%

National avg $2.67/gal. Montana pays $0.55 less per gallon than the US average.

vs West region avg

-26%

Region avg $2.88/gal. Montana sits $0.76 below the regional norm.

Annual fuel cost (1,000 gal)

$2121

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

500-gallon refill (400 usable)

$848

Most common residential tank size on Montana ranches and rural homes

Best time to fill

May-Aug

Off-season pre-buy and cap-price contracts typically save 10-20%

Montana is one of the cheapest US markets for residential propane, sitting alongside Colorado ($2.30/gal), Utah ($2.34/gal), and Idaho ($2.40/gal) at the bottom of the West regional ladder. The structural reasons are short supply chain (Billings refining + Bakken NGLs), in-state byproduct economics, and aggressive natural-gas competition in the population centres.

Why Montana Propane Prices Sit Where They Do

Montana consistently sits among the cheapest residential propane markets in the western US. The drivers are structural and tied to the state's upstream energy economy. Unlike high-cost markets in the Northeast and on the West Coast, Montana benefits from local production, byproduct supply, and strong heating-fuel competition.

1. Billings refining cluster. CHS Inc. (Laurel refinery, just outside Billings), Phillips 66 (Billings refinery), and ExxonMobil (Billings refinery) operate three of the largest refineries in the Northern Rockies. Propane is a byproduct of crude refining and the natural-gas-processing units that run alongside these plants. Byproduct economics mean propane is essentially priced to clear the market rather than to recover full upstream cost, which keeps the regional wholesale rate low.

2. Bakken NGL access. Montana borders the Bakken (Williston Basin) shale play, which produces large volumes of natural-gas liquids in eastern MT and western ND. NGL fractionators along the BNSF mainline and out of Sidney supply trucked propane into eastern Montana retail at short-haul rates. Where Connecticut pays for 1,500 miles of rail-and-truck logistics, eastern Montana ranchers pay for two counties of bobtail haul.

3. Pipeline natural gas dominates the cities. Billings, Missoula, Bozeman, Helena, and Great Falls are mostly served by pipeline natural gas through NorthWestern Energy and Energy West. Propane competes for the rural and reservation customer base, plus seasonal-cabin and ranch routes. To win that business at all, retailers price competitively. The result is per-gallon rates well below states where propane is the only practical fuel for the residential mass market.

4. Agricultural propane is a baseload customer. Montana is a top-three US wheat producer (winter and spring wheat) and a major sugar-beet, barley, and cattle state. Agricultural propane (crop drying for wheat and sugar beets, livestock heaters, calving barns, weed-flaming) gives retailers a high-volume, multi-season demand profile that improves route economics and lets them price residential gallons more aggressively. Ranches buying 2,000-5,000 gallons a year on contract effectively subsidise the route density that benefits residential customers along the same delivery line.

The exception: dispersed-route premiums. The statewide average masks real geographic spread. Glasgow, Glendive, and the Hi-Line communities along US-2 see multi-week sub-zero stretches and very long supplier routes, which adds $0.20-$0.40/gal versus a Billings-area quote. The same applies to propane delivery on the Crow, Northern Cheyenne, Blackfeet, and Fort Peck reservations and to seasonal-cabin routes around Glacier and Yellowstone. The state average is real; the per-quote rate in Phillips County or on the Hi-Line will sit above it.

Montana Propane Fill Costs by Tank Size (at $2.12/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 Montana 2026 statewide average. Real-world quotes vary 10-15% above or below the EIA average depending on supplier, contract type, and how dense your delivery route is. Expect to pay above the average in Eastern MT and on dispersed reservation or seasonal-cabin routes.

Tank size	Usable gallons (80%)	Fill cost at $2.12/gal	vs national ($2.67/gal)
100 gal	80 gal	$170	-$44
250 gal	200 gal	$424	-$111
500 gal	400 gal	$848	-$221
1000 gal	800 gal	$1697	-$442

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

Montana Heating Season & Annual Use

Montana has one of the longest residential heating seasons in the lower 48. West of the divide (Missoula, Kalispell, Bozeman) the season runs roughly October through April. East of the divide (Billings, Glasgow, Glendive, Sidney, Miles City) it runs longer and harder: multi-week sub-zero stretches in January and February are routine on the Hi-Line and through the Big Open. A 2,400 sqft propane-heated home in Phillips County will burn materially more fuel than the same home in the Gallatin Valley.

Typical Montana propane-heat households consume 800-1,200 gallons per year, depending on home size, insulation, exposure, and whether propane handles space heat alone or also water heating, range, and dryer. At the 2026 MT average of $2.12/gal, that is $$1697-$2545 per year for fuel. Households where propane only does cooking and water heating (with electric or natural gas for primary space heat) run 200-400 gallons annually. Working ranches running propane for crop drying (wheat, sugar beets), calving barns, livestock heaters, and outbuildings can run 2,000-5,000 gallons a year.

LIHEAP for income-qualified Montana households. The Montana Low Income Home Energy Assistance Program is run by the Montana Department of Public Health and Human Services (DPHHS). For the 2025-2026 heating season the income limits are $33,719 for one person, $44,095 for two, $54,470 for three, and $64,846 for four. The benefit pays directly to your propane supplier toward winter fuel costs. Heating season is October 1 through April 30, but you can apply year-round through your local Human Resource Development Council (HRDC) or Tribal LIHEAP office. Apply online at apply.mt.gov/access/ or read the program page at dphhs.mt.gov/hcsd/energyassistance/.

Summer pre-buy is the single biggest lever. Pre-buying or capping in May-August routinely saves $200-$400 per year for a 1,000 gallon Montana household versus paying winter spot rates. Most Montana suppliers run their pre-buy enrollment between May 1 and August 31. Read the contract: cap-price contracts let you keep savings if wholesale falls; flat pre-buy locks you in either direction. Ranches with 2,000+ gallons of annual demand should ask about volume discounts on top of the pre-buy rate.

How to Find a Licensed Propane Supplier in Montana

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 state-specific consumer rules on tank ownership and contract disclosure. Three reliable starting points:

Rocky Mountain Propane Association (RMPA) at rmpropane.org: the regional trade body covering Idaho, Montana, Utah, and Wyoming. Its member directory is the right starting point for Montana-active retailers.
National Propane Gas Association (NPGA) at npga.org: the national trade association lists licensed propane retailers across all 50 states.
Montana State Fire Marshal & Building Codes Bureau. Montana's LP-Gas Code (NFPA 58, 2020 edition) is administered by the State Fire Marshal's office, while the Montana Department of Labor & Industry Building Codes Bureau (bsd.dli.mt.gov/building-codes-permits) handles building, mechanical, and fuel-gas permitting and inspection. Tank installs and gas-line work require permits and licensed installers under this framework.

Always get a written quote that itemises per-gallon price, delivery fee, tank rental (if applicable), minimum-delivery surcharge, and any monthly tank or service fee. Compare two or three quotes before signing. Per-gallon spreads of $0.30-$0.50 within the same county are common, especially in the lower-density eastern half of the state.

Tier-1 supplier list coming. A hand-curated list of named Montana 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 official state licensed-dealer 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.

Montana vs Neighbouring West & Northern Plains States (2026)

State	Price/gal	500-gal refill (400 usable)	vs national ($2.67)
Montana (this page)	$2.12	$848	-21%
Wyoming	$2.27	$906	-15%
Idaho	$2.40	$959	-10%
Colorado	$2.30	$921	-14%
Utah	$2.34	$935	-13%
New Mexico	$2.93	$1172	+10%
North Dakota	$1.70	$680	-36%
South Dakota	$1.84	$736	-31%
National average	$2.67	$1070	0%

Montana sits at the cheap end of the West cluster, alongside Colorado, Utah, and Idaho. The Northern Plains comparison (North Dakota, South Dakota) shows the same pattern: states with proximity to Bakken NGL production and refining capacity sit well below the national average. Far-from-production West Coast and Pacific states (California, Oregon, Washington) and the import-only states (Hawaii, Alaska) sit at the expensive end. The full West regional average is $2.88/gal.

Montana Propane FAQ

Why is propane so cheap in Montana?

Montana sits at $2.12/gal in 2026, roughly 21% below the national average of $2.67/gal and 26% below the West regional average of $2.88/gal. Three structural drivers explain it. First, Billings is one of the larger refining clusters in the Northern Rockies: CHS, Phillips 66, and ExxonMobil all operate refineries there, and propane is a byproduct of crude refining and natural-gas processing. Second, Montana borders the Bakken (Williston Basin) shale play, which produces large volumes of natural gas liquids that flow through regional fractionation. Third, residential propane in Montana competes against very cheap pipeline natural gas in Billings, Missoula, Bozeman, and Helena (NorthWestern Energy / Energy West service areas), so retail propane has to price low to win the rural and reservation customer base it actually serves. The combination of in-state production, byproduct-economics supply, and competitive pressure keeps Montana per-gallon rates low.

Who has the cheapest propane in Montana?

There is no single cheapest supplier statewide. Pricing varies by county, contract type (will-call vs auto-fill vs pre-buy), and how dense your delivery route is. In dispersed-route territory (Eastern MT ranches, Glacier-region tourism, reservation-served communities), per-gallon rates tend to run $0.20-$0.40/gal above the populated I-90 / I-15 corridor because route economics are weaker. The reverse is also true: Billings, Bozeman, Missoula, and Helena have multiple competing suppliers and the tightest per-gallon spreads in the state. Always quote at least three suppliers, including one Rocky Mountain Propane Association member with Montana operations, one local independent in your county, and one supplier with their own bulk storage. Pre-buy or cap-price contracts signed May through August routinely save $0.20-$0.40/gal versus paying winter spot rates.

Am I eligible for Montana LIHEAP?

Montana's Low Income Home Energy Assistance Program is administered by the Montana Department of Public Health and Human Services (DPHHS) and pays a benefit directly to your propane supplier toward winter fuel costs. Eligibility for the 2025-2026 heating season uses these income limits: $33,719 for a one-person household, $44,095 for two, $54,470 for three, and $64,846 for four. Heating season runs October 1 through April 30; you can apply at any time of year through your local Human Resource Development Council (HRDC) or Tribal LIHEAP office, but applying before October avoids the peak-winter backlog. Apply online at apply.mt.gov/access/ or read the program details at dphhs.mt.gov/hcsd/energyassistance/. If propane is your main heat source and you do not have a current bill, request a letter of service from your supplier to file with the application.

How much do Montana households spend on propane per year?

A Montana propane-heated household typically burns 800-1,200 gallons per year, with Eastern MT homes (Glasgow, Glendive, Sidney) at the upper end because of the multi-week sub-zero stretches that hit the Hi-Line and the Big Open every winter. At the 2026 statewide average of $2.12/gal, that is roughly $1697-$2545 per year for fuel alone. Households using propane only for water heating, cooking, or supplemental space heat (typical of in-town Bozeman or Missoula homes on natural gas for primary heat) burn 200-400 gallons annually, costing $424-$848. Ranches running propane for crop drying (wheat, sugar beets), livestock heaters, and outbuildings can run 2,000-5,000 gallons a year and benefit the most from contract pre-buy.

Where does Montana propane actually come from?

Two main sources. First, the Billings refining cluster: CHS Inc. (Laurel refinery, just outside Billings), Phillips 66 (Billings refinery), and ExxonMobil (Billings refinery) all produce propane as a byproduct of crude refining. Combined Billings refining capacity is over 200,000 barrels per day of crude, and the LPG cut from that throughput supplies a meaningful share of the regional retail market. Second, Bakken-sourced natural gas liquids (NGLs) move out of the Williston Basin in eastern MT and western ND through fractionators and rail terminals, with propane reaching Montana retailers via truck. Most Montana propane bobtails do their bulk fills at terminals near Billings, Sidney, or along the BNSF mainline. The short supply chain (in-state refining plus next-state-over NGLs) is the single biggest reason Montana retail propane stays under the national average.

When is the cheapest time to buy propane in Montana?

Late spring through midsummer, May through August. Propane prices follow a seasonal cycle: prices bottom after the heating season ends and before the next winter's pre-buy window opens, then climb into November and peak in January and February when cold-snap demand strains regional storage. Most Montana suppliers run pre-buy enrollment (lock a per-gallon rate for next winter's deliveries) and cap-price contracts (set a ceiling but benefit if the market falls) between May and August. Tactical play for Eastern MT homes that see -20F stretches: time your fill so you arrive at November with a 75-80% full tank from a September shoulder-season top-up. If your tank is below 30% in early autumn, fill it; do not wait for January hoping for a January thaw to drop spot rates.

How do I find a licensed propane supplier in Montana?

Three official starting points. (1) The Rocky Mountain Propane Association at rmpropane.org is the regional trade body covering Idaho, Montana, Utah, and Wyoming; its member directory lists Montana-active retailers. (2) The National Propane Gas Association member directory at npga.org lists licensed propane retailers nationally. (3) Montana's regulatory framework is split: the Montana State Fire Marshal's office administers the Montana LP-Gas Code (based on NFPA 58, 2020 edition), and the Montana Department of Labor & Industry Building Codes Bureau (bsd.dli.mt.gov/building-codes-permits) handles building, mechanical, and fuel-gas permitting and inspection statewide. Always get a written quote that itemises per-gallon price, delivery fee, tank rental, minimum-delivery surcharge, and any monthly tank or service fee. Compare two or three quotes before signing. Per-gallon spreads of $0.30-$0.50 within the same county are common, especially in the lower-density eastern half of the state.