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

Texas residential propane runs $2.99/gal in 2026, roughly +12% versus the national average and -8% versus the South regional norm. Texas is the largest LPG-producing state in the US, Mont Belvieu sets the global benchmark, but residential retail is mid-tier for the South because rural-route economics in West Texas and the Panhandle pull the statewide average up. This is the no-spin breakdown: pricing snapshot, RRC-licensed supplier search, fill-by-tank-size math, the Mont Belvieu paradox, hurricane and harvest cycles, and CEAP assistance.

Latest EIA residential propane price

Source: EIA Texas 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.

Texas Propane Pricing Snapshot (2026)

Texas residential avg
$2.99/gal

EIA 2026 survey, full-service residential delivery, statewide

vs national average
+12%

National avg $2.67/gal. Texas pays $0.31 more per gallon than the US.

vs South region avg
-8%

Region avg $3.26/gal. Texas runs below the regional norm.

Mont Belvieu paradox
#1 LPG producer

Texas produces the most propane in the US (Permian + Eagle Ford NGLs, Mont Belvieu hub) yet residential retail is mid-tier for the South, rural-route economics, not feedstock, set the price.

Annual fuel cost (1,000 gal)
$2989

Typical Texas propane-heat household uses 800-1,200 gal/year for primary heat plus water and cooking

500-gallon refill (400 usable)
$1196

Most common residential tank size in rural Texas; 80% rule applied

Texas sits in the middle of the South regional cluster: cheaper than the Atlantic-coast South (Florida, Alabama, Georgia, North Carolina) but materially above the Gulf-cluster (Louisiana, Arkansas, Oklahoma). Production proximity helps in the Houston-Galveston and Eagle Ford corridors, but residential rates in West Texas, the Trans-Pecos, and the Panhandle pull the statewide weighted average up.

Why Texas Propane Prices Sit Where They Do

Texas should be the cheapest residential propane market in the country, it produces more propane than any other state, hosts the global benchmark hub at Mont Belvieu, and is the world's largest LPG export point through the Houston-Galveston rail and marine infrastructure. It is not. The $$2.99/gal residential average puts Texas in the middle of the South cluster. The drivers are structural and rural, not feedstock.

1. Residential ≠ wholesale. Mont Belvieu wholesale propane trades at a fraction of the residential retail rate. The gap is delivery economics: bobtail truck miles, route density, customer count per route, and tank-fill frequency. Texas residential customers are widely dispersed compared to Louisiana or Arkansas, so per-gallon overhead is structurally higher despite production proximity.
2. West Texas and Panhandle route-mile drag. Midland-Odessa, Lubbock, Amarillo, El Paso, and the Trans-Pecos sit far from Mont Belvieu and the Houston Ship Channel. Delivery routes log hundreds of miles per fill day, with low residential density between stops. Per-gallon retail in these regions runs $0.30-$0.60 above Houston metro rates, and the weighted statewide EIA average reflects that.
3. Hurricane Gulf cycle. Coastal counties from Brazoria through Cameron see a parallel demand cycle for standby generator propane. Wholesale Mont Belvieu is largely uncorrelated to landfall risk because production keeps running, but emergency-fill premiums and route-priority surcharges in the 7-10 days before a warning lift coastal retail rates. The post-storm rebuild draw extends the premium two to four weeks.
4. Cotton drying and ag demand in the High Plains. The Texas Panhandle is one of the largest cotton-producing regions in the US. Propane-fired crop dryers run heavily from late September through early December. Agricultural draw in Lubbock, Lamb, Hale, Floyd, and Castro counties tightens regional supply at exactly the moment heating season ramps. Residential customers in those counties typically pay $0.20-$0.40 above the Texas average from October through December.
5. Hill Country and recreational propane. RV parks, lake homes, ranches, and second-homes across the Hill Country (Kerr, Gillespie, Blanco, Comal) carry a recreational premium because delivery routes are seasonal and customer density is patchy. Year-round residential pricing in San Antonio and Austin metros runs lower than Hill Country rural and recreational quotes.

Texas Propane Companies: How to Find a Licensed Supplier

Texas propane dealers are licensed by the Texas Railroad Commission (RRC) Alternative Fuels Division, not the Department of Agriculture. This trips up homeowners moving from other states. The RRC publishes a public license search and any company quoting you must appear on it, unlicensed delivery is illegal in Texas.

  • Texas RRC license search: rrc.texas.gov/alternative-fuels/afs-search, search by company name or licence number. Relevant categories for residential delivery are E (retail/wholesale dealer) and H (cylinder dealer). RRC licensing contact: lplicense@rrc.texas.gov, 512-463-6462.
  • Texas Propane Gas Association (TPGA): txpropane.com, state trade association founded 1944. Austin office at 401 W 15th Street, Suite 510, Austin, TX 78701; (512) 836-8620. Maintains a Find a Propane Retailer tool for members and TPGA member operators tend to be among the better-vetted residential suppliers.
  • National Propane Gas Association (NPGA): npga.org, national trade association, useful as a cross-check for the larger chains.

Below is a tiered framework for the Texas market. Always quote at least three suppliers, including one national chain, one Texas regional operator, and one local independent in your county. Per-gallon spreads of $0.30-$0.60 within the same Texas county are common.

AmeriGas

National chain

Coverage: Statewide. Major Texas operations centres in Houston, Dallas-Fort Worth, San Antonio, Austin, Lubbock, Midland-Odessa, El Paso, McAllen, and Tyler. One of the largest residential footprints in Texas.

Notes: Largest US propane retailer. Predictable service and broad geographic coverage, but pricing rarely beats Texas regional operators on per-gallon. Best when you need wide statewide coverage or already have an AmeriGas tank.

Suburban Propane

National chain

Coverage: Multiple Texas locations including DFW, San Antonio, Houston-area, and several West Texas markets. 24/7 customer line at 1-800-PROPANE.

Notes: Comparable per-gallon to AmeriGas. Negotiate hard on first-fill rate and ongoing per-gallon before signing a multi-year service agreement. Watch tank-rental clauses in coastal and Panhandle service areas.

ThompsonGas

National chain

Coverage: Strong Texas footprint via acquisitions; serves East Texas, Houston metro, and Central Texas including Hill Country recreational propane (RV, lake homes, Airstream parks).

Notes: Active acquirer of regional Texas operators in recent years. Pricing varies by acquired-region legacy contract terms; quote a fresh per-gallon rate even if you inherited the account from a prior supplier.

Texas regional family operator

Regional family operator (placeholder)

Coverage: Texas has multiple multi-generation family propane operators with in-state bulk storage in the Eagle Ford, Permian, Houston-Galveston, and Panhandle regions.

Notes: Regional family operators with their own bulk storage often price $0.10-$0.30/gal under the national chains because they cut out one rail-to-truck handoff. Verify any name quoted to you on the RRC licensed-dealer search before signing. We do not list specific names in this section without independent verification.

Permian Basin LPG specialist

Regional operator (placeholder)

Coverage: Midland-Odessa, Big Spring, Andrews, Pecos, and surrounding West Texas oilfield communities. Specialists in oilfield, RV park, and rural residential delivery.

Notes: West Texas residential rates run $0.30-$0.60/gal above Houston metro because delivery routes are long and customer density is low. Specialist regional operators in Midland-Odessa typically beat national-chain rates by serving denser oilfield-residential routes.

Hill Country / Central Texas operator

Regional operator (placeholder)

Coverage: Hill Country (Kerr, Gillespie, Blanco, Comal counties) and Austin-area rural propane, including recreational and second-home accounts.

Notes: Hill Country pricing reflects a mix of urban-adjacent supply economics and recreational seasonal demand. Lakeside and ranch propane often runs higher per-gallon than year-round residential because delivery routes are seasonal.

Panhandle agricultural propane co-op

Local operator (placeholder)

Coverage: Lubbock, Amarillo, Lamb, Hale, Floyd, Castro, Deaf Smith, and Parmer counties. Cotton-drying, grain-drying, and feedlot accounts plus rural residential.

Notes: Panhandle residential customers often share a supplier with their agricultural neighbours. Pricing tightens in September-November during cotton drying. Lock in pre-harvest if you can.

Local independent

Local independent (placeholder)

Coverage: Single-county or two-county footprint typical for Texas local independents. East Texas, Brazos Valley, Coastal Bend, and Trans-Pecos all have active local-only operators.

Notes: Smaller, route-dense local operators often lead on price within their service zone. Verify on the RRC licensed-dealer search and confirm tank ownership terms, Texas allows tank purchase outright, which is the strongest leverage in this market.

Verification note. Specific Texas regional and local propane operator names are deliberately omitted above pending independent verification against the RRC license search and TPGA member directory. We do not generate Texas supplier names from training data because the regional operator landscape changes year to year through acquisitions and consolidations. The framework above is the verified structure of the Texas market, fill in named operators only after checking the RRC search yourself for your county.

Texas Propane Fill Costs by Tank Size (at $2.99/gal)

Propane tanks fill to 80% of stated capacity (the "80% rule") to allow for thermal expansion, federal NFPA 58 safety requirement, especially relevant in Texas summer heat. Below is what each fill costs at the Texas 2026 average versus the national average. Real-world quotes vary 10-15% above or below the EIA average depending on supplier, contract, region within Texas, and delivery frequency.

Tank sizeUsable gallons (80%)Fill cost at $2.99/galvs national ($2.67/gal)
100 gal80 gal$239+$25
250 gal200 gal$598+$63
500 gal400 gal$1196+$126
1000 gal800 gal$2391+$252

Compare to the national refill cost guide or check pricing in other states. A typical Texas propane-heat household burning 1,000 gallons/year pays $2989 annually for fuel alone, before tank rental, delivery surcharges, or service contracts.

Texas Heating Season, Annual Use, and CEAP Assistance

Texas's residential heating season runs roughly four months, late November through mid-March, with peak demand in January and February. The Panhandle and High Plains see meaningfully colder winters than the Gulf Coast or Rio Grande Valley, so annual propane use varies more by latitude than in most states. Spring (March-April) and fall (October-November) shoulder seasons see modest space-heating demand on cold nights; June-September is essentially water-heating, cooking, and pool-heat only for propane households.

Typical Texas propane-heat households consume 800-1,200 gallons per year for primary space heat, water heat, range, and dryer. A 2,400 sqft home in the Panhandle running propane for primary heat averages 1,000-1,200 gallons. The same house in the Hill Country or Coastal Bend, where winter heating load is lower, runs 500-800 gallons. Propane-only-for-cooking-and-water-heating households (electric or natural gas for space heat) typically use 150-300 gallons annually.

Translated to dollars at the 2026 Texas average: a 1,000 gallon household pays $2989 per year for fuel alone. That is $$310 more than a comparable household in a national-average market.

CEAP, Comprehensive Energy Assistance Program. Texas runs the federal LIHEAP funds through CEAP, administered by the Texas Department of Housing and Community Affairs (TDHCA) and distributed via local subgrantee Community Action Agencies. Eligibility is gross household income at or below 150% of the Federal Poverty Income Guidelines, with priority for elderly, young children, and disabled household members. The benefit is paid directly to the propane supplier. To find your local subgrantee: dial 211, call 877-399-8939, or visit tdhca.texas.gov/help-for-texans and select "Utility Bill Payment Help" for your city or county. Apply early, funds are finite each year.
Hurricane prep on the Gulf Coast. If you live in Brazoria, Galveston, Harris, Jefferson, Chambers, Matagorda, Aransas, Nueces, or Cameron counties, fill your standby-generator tank to 80% by 1 June and again in October. That cycles you through Atlantic hurricane season without paying emergency-fill premiums or route-priority surcharges. Auto-fill scheduling for new accounts often pauses the week before a Gulf landfall warning.
Pre-buy and cap-price are the biggest savings lever. Most Texas suppliers run their pre-buy enrolment between May 1 and August 31. Pre-buying or capping in summer routinely saves 10-20% versus paying winter spot rates, $200-$500 per year for a 1,000 gallon household. Read the fine print: cap-price contracts let you keep savings if wholesale falls; flat pre-buy locks you in either direction. In the Panhandle, lock in by August before the cotton-drying ag draw begins.

Texas vs Other South Region States (2026)

StatePrice/gal500-gal refill (400 usable)vs national ($2.67)
Florida$4.71$1882+76%
Maryland$3.74$1496+40%
Virginia$3.56$1426+33%
Alabama$3.52$1406+31%
South Carolina$3.51$1405+31%
West Virginia$3.51$1405+31%
North Carolina$3.45$1380+29%
Tennessee$3.25$1299+21%
Georgia$3.16$1266+18%
Mississippi$3.05$1221+14%
Texas (this page)$2.99$1196+12%
Kentucky$2.94$1174+10%
Louisiana$2.93$1172+10%
Arkansas$2.37$947-11%
Oklahoma$2.27$909-15%
South region average$3.26$1304
National average$2.67$10700%

Texas sits in the middle of the South cluster. Florida, Alabama, Georgia, North Carolina, and the Atlantic-coast South are above Texas, distance from Mont Belvieu and a thinner residential propane base raise their per-gallon. Louisiana, Arkansas, and Oklahoma are below Texas, they are physically closer to dense supply corridors and have higher residential propane share with denser routes. Texas's production proximity helps in the Houston-Galveston and Eagle Ford metros, but West Texas, Trans-Pecos, and Panhandle route economics pull the statewide weighted average up to $-8% versus the South regional average of $$3.26.

Texas Propane FAQ

Why is Texas propane more expensive than Louisiana or Oklahoma when Texas is the biggest LPG producer?
This is the Mont Belvieu paradox. Texas is the largest propane-producing state in the US, Mont Belvieu in Chambers County is the global benchmark hub for NGL pricing, and Permian and Eagle Ford gas processing keep Texas net-long on supply year-round. But the EIA residential price for 2026 is $2.99/gal, +12% versus the $2.67 national average and -8% versus the South regional average of $3.26. Wholesale-to-retail spread is the answer. Wholesale Mont Belvieu propane trades far cheaper than Texas retail, but residential delivery costs are driven by truck miles and route density, not feedstock. West Texas, the Panhandle, and the Trans-Pecos have long delivery routes with low customer density, which lifts the statewide average above neighbouring Louisiana ($2.93), Arkansas ($2.37), and Oklahoma ($2.27) where rural propane households cluster more tightly along supply corridors.
Who has the cheapest propane in Texas?
There is no single cheapest supplier statewide, and the Texas market is too large to generalise. Houston, Dallas-Fort Worth, San Antonio, and Austin metros have the most competitive retail markets because supplier route density is high and wholesale tankers reload directly from Mont Belvieu, Houston Ship Channel, and the Eagle Ford. West Texas (Midland-Odessa, Lubbock, Amarillo) and the Trans-Pecos run $0.30-$0.60/gal above the urban quotes because delivery trucks log far more miles per fill. Always quote at least three suppliers including one national chain (AmeriGas, Suburban Propane, ThompsonGas), one Texas regional operator, and one local independent listed in your county on the Railroad Commission's licensed-dealer search. Pre-buy and cap-price contracts signed May-August routinely save $0.20-$0.40/gal versus winter spot rates.
Am I eligible for the Texas Comprehensive Energy Assistance Program (CEAP)?
CEAP is the Texas variant of LIHEAP, administered by the Texas Department of Housing and Community Affairs (TDHCA) and distributed through local subgrantee Community Action Agencies. Eligibility is gross household income at or below 150% of the Federal Poverty Income Guidelines. The program pays the benefit directly to the propane supplier on the household's behalf, with priority for households containing elderly members, young children, or people with disabilities. To find your local subgrantee, dial 211, call 877-399-8939, or visit tdhca.texas.gov/help-for-texans and search "Utility Bill Payment Help" for your city or county. Apply early in the heating season, fund availability is finite each year and crisis-only applications in January-February face delivery delays.
How do I verify a propane dealer is licensed in Texas?
In Texas, propane dealers, transporters, plumbers, and installation contractors are licensed by the Texas Railroad Commission (RRC) Alternative Fuels Division, not by the Department of Agriculture, which trips up homeowners moving from other states. The RRC publishes a public Registration, Certification and License Search at rrc.texas.gov/alternative-fuels/afs-search. Search by company name or licence number before signing any service contract. The relevant licence categories for residential delivery are Category E (retail/wholesale dealer) and Category H (cylinder dealer). If your quoting company does not appear in the RRC search, do not sign, unlicensed delivery is illegal in Texas and uninsured against accident or shorted-fill claims.
Does propane price spike during hurricane season on the Gulf Coast?
Less than you might expect on per-gallon retail, but yes on availability and delivery surcharges. Hurricane risk does drive a parallel demand cycle: standby-generator fills surge in the 7-10 days before a Gulf landfall warning, and propane suppliers in Brazoria, Galveston, Harris, Jefferson, and Cameron counties impose route-priority surcharges or close auto-fill scheduling for new customers. Wholesale Mont Belvieu propane is largely uncorrelated to hurricane season because production keeps running through storm prep. The retail price impact comes from emergency-fill premiums and post-storm rebuild demand, both transient. If you live in a coastal Texas county, fill your generator tank to 80% by 1 June and again in October, that gets you through the cycle without an emergency-rate quote.
Why is propane demand so high in the Texas Panhandle and High Plains?
Cotton drying. The Texas High Plains is one of the largest cotton-producing regions in the US, and propane-fired crop dryers run heavily from late September through early December as the harvest comes in. Agricultural propane demand in Lubbock, Lamb, Hale, Floyd, and Castro counties materially tightens regional retail supply in autumn, residential customers in the same counties often see a $0.20-$0.40/gal seasonal premium during harvest peak. The same Panhandle storage infrastructure also serves grain drying in Deaf Smith and Parmer counties and feedlot heating in Castro and Bailey. If you live in the Panhandle and run propane heat, top up to 80% in August before the ag draw begins.
When is the best time to fill my propane tank in Texas?
Late spring through midsummer (May-August) is the cheapest window statewide. Texas wholesale propane bottoms out after heating season ends and before the ag-drying draw and pre-buy enrolment open. Avoid filling in December-February if you can help it: that is when South-region residential demand peaks and route-priority fees hit. Tactical play: time your fill so you arrive at winter with a 75-80% full tank from a September top-up at shoulder-season prices. Hurricane-coast households should add a June fill ahead of Atlantic storm season. Panhandle households should lock in pre-harvest in August before the cotton-drying draw lifts regional rates.

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