For millions of American households beyond the reach of natural-gas pipelines — mostly in rural areas — propane is how they heat their homes, cook, and dry their crops. It's delivered by truck and stored in a tank, and its price can swing sharply with winter weather and supply crunches. This guide charts propane prices over the years and explains why this rural fuel is so prone to spikes.
What is propane used for?
Propane is a gas, stored as a liquid under pressure, that comes from natural-gas processing and oil refining. In homes it fuels furnaces, water heaters, stoves, and clothes dryers; on farms it dries grain and heats barns; and it powers forklifts, backup generators, and grills. Because it's delivered by truck and stored on-site, propane reaches places no pipeline does — which is exactly why it's the fuel of rural America.
Why rural America depends on propane
Where natural-gas pipelines don't run — across much of the countryside and small towns — propane fills the gap as the practical heating fuel. That makes propane prices a rural cost-of-living issue that gets little national attention but matters enormously to the households that rely on it. A cold winter or a supply disruption can mean a painful jump in the cost of simply staying warm, with few easy alternatives for families whose furnaces run on it.
Why propane prices are volatile
Propane prices are notoriously jumpy. As a byproduct of gas and oil, its supply rides those markets, but its demand is sharply seasonal and weather-driven, spiking in cold snaps and during fall grain-drying season. Storage and the trucking distribution network can get strained fast. The infamous example came in the brutally cold winter of 2013–14, when a polar vortex collided with heavy crop-drying demand and thin supplies, and propane prices in parts of the country briefly more than doubled, sparking shortages and emergency measures.
Propane vs. other heating fuels
Propane competes with natural gas, heating oil, and electricity for home heating. Where natural gas is available it's usually cheaper, so propane dominates only where pipelines don't reach. Compared with heating oil, propane burns cleaner but the two share the same vulnerability: both are delivered fuels with seasonal, weather-driven demand, so both spike in cold winters. As heat pumps and rural electrification advance, propane faces the same slow, long-term pressure as oil heat — but for now it remains essential across rural America.
Frequently asked questions
What is propane used for?
Home heating, water heating, cooking, and clothes drying, plus farm grain-drying, forklifts, generators, and grills. It's delivered by truck and stored in a tank, reaching places pipelines don't.
Why does rural America use propane?
Where natural-gas pipelines don't run — across much of the countryside — propane is the practical heating fuel, delivered by truck and stored on-site.
Why are propane prices so volatile?
As a byproduct of gas and oil, supply follows those markets, while demand is sharply seasonal and weather-driven — spiking in cold snaps and grain-drying season, straining storage and trucking.
What happened to propane prices in 2014?
A brutal polar-vortex winter collided with heavy crop-drying demand and thin supplies, and propane prices in parts of the country briefly more than doubled, causing shortages and emergency measures.
Is propane cheaper than natural gas?
Usually no — natural gas is typically cheaper where pipelines reach. Propane dominates only where natural gas isn't available, mainly rural areas.