What a Propane Refill Costs

A propane refill bill is the price per gallon times the gallons the driver puts in, plus fees that are not in the per-gallon number. Two companies can quote the same gallon price and still be tens of dollars apart once delivery, a hazmat line, and a minimum-fill charge are added.

Do the gallons math before you compare prices

A 500-gallon tank holds about 400 gallons of propane when the driver calls it full. If the gauge reads 30%, about 150 gallons are still in the tank, so a fill back to 80% is about 250 gallons. A 250-gallon tank at 30% needs about 125 gallons to get back to a full fill. The gauge guide and the tank size chart show the arithmetic.

Here is the fuel line by itself, using a made-up price so the steps are easy to see. This is not a market quote.

Change the $2.50 to the price you were quoted. A 20-cent difference on 250 gallons is $50. A 20-cent difference on a 20 lb cylinder, which holds about 4.7 gallons, is about a dollar.

The lines that change the winner

Get each of these in writing before you pick a company. Names vary. The charge does not.

• Price per gallon. Ask if it is a firm price for this delivery or a price that floats until the truck rolls.
• Delivery or trip fee. A flat charge on top of the gallons. It hurts more on a small fill.
• Hazmat, fuel surcharge, or regulatory fee. Sometimes a few dollars, sometimes a percentage. Ask which.
• Minimum gallons. Some routes will not come for 50 gallons unless you pay a small-delivery fee or pay as if you took the minimum.
• Tank rent. Common when the company owns the tank. A “free tank” is usually rent rolled into the gallon price or a line you see once a year.
• Out-of-gas fee. Running dry often adds a leak check and a relight. That visit costs more than ordering at 30%.

A fair comparison is the whole bill for the same number of gallons, not the gallon price alone.

What a national average is for

During heating season, October through March, the U.S. Energy Information Administration surveys residential propane prices and publishes a U.S. average, plus state and regional averages. The survey is weekly in those months. Off season it is less frequent. The figures are on the EIA heating oil and propane page.

That average is a backdrop. State prices in the same survey often sit far apart, and a single house can sit far from its state average once fees are included. If a quote is wildly above the current state figure, ask what the fees are. If it is wildly below, ask what the contract locks you into for the rest of the year.

Home delivery and a cylinder refill are different products

A bulk truck fills the tank in the yard and bills by the gallon, plus fees. A 20 lb cylinder is either exchanged for a flat price or filled at a station by the gallon.

To compare those, divide the exchange price by 4.7. That is the price per gallon hiding inside the flat fee. A station refill of the same cylinder is already a per-gallon price, usually without a delivery fee, because you hauled the cylinder. The exchange guide covers which cylinders a cage will take.

Questions to send both companies

Copy this into an email so the answers line up.

• Price per gallon for a delivery in the next two weeks, and whether that price can change before the truck arrives.
• Every fee on a delivery of the gallons you need. Use your gauge: a 500-gallon tank at 30% needs about 250 gallons.
• Minimum gallons, tank rent, and the charge if the tank runs out.
• Whether the tank stays if you switch companies later. The delivery guide explains will-call versus a route that comes automatically.

Questions people ask about the bill

Why did I get fewer gallons than the tank size?

Because the tank was not empty, and because a full fill stops near 80%. A 500-gallon tank that still reads 40% only has room for about 200 gallons.

Is the first fill the same price as a top-off?

Often no. A new account may have a different price, a tank-set charge, or a minimum that a later delivery does not. Ask for both.

Should I lock a price for the winter?

A lock is useful if you want a number you can budget. It is a bad deal if the fee to lock, or the gallon price, is far above what other local companies are offering for the same months. Compare the whole contract, including what happens if you use less than the gallons you reserved.