Best Time to Buy Propane: Monthly Price Guide
Timing your propane purchase is one of the easiest ways to save hundreds of dollars per year. July prices average $2.42/gal while January hits $3.12/gal. On a 400-gallon fill, that is $280 in savings just by buying in summer.
Summer Low (July)
$2.42/gal
400 gal = $968
Winter Peak (January)
$3.12/gal
400 gal = $1,248
Your Savings
$280
on a single 400-gal fill
Month-by-Month Buying Guide
Detailed guidance for each month of the year, including average prices, recommended actions, and what to watch for. Prices shown are 2026 national averages.
January
$3.12Peak pricing month. If you must buy, order the minimum needed. Spot prices can spike during cold snaps. Delivery times may be 3-7 days due to high demand.
February
$3.08Still peak season. Prices start edging down late in the month as winter winds down. Emergency delivery surcharges are common during February cold snaps.
March
$2.92Prices declining but still elevated. If your tank is running low, a partial fill is smarter than a full fill. Prices drop faster in southern states than northern ones.
April
$2.75Prices nearing the national average. Reasonable time to buy if your tank is low. Heating season is ending in most areas. Start getting quotes from multiple suppliers.
May
$2.58Pre-buy programs start opening up. Suppliers begin competing for summer business. Start calling for quotes. Lock in a pre-buy contract if you find a good rate.
June
$2.48Deep into low season. Fill your tank now if you did not in May. Pre-buy contracts are available from most suppliers. Delivery times are fast (same week).
July
$2.42The absolute lowest prices of the year. Fill your tank to 80% now. Sign a pre-buy contract. Join a buying cooperative. This is the single best month to lock in your winter fuel supply.
August
$2.45Still excellent pricing, only slightly above July. Last chance for the deepest summer discounts. Pre-buy enrollment typically closes mid-to-late August.
September
$2.55Prices rising but still well below winter levels. Good time for a top-off fill before heating season begins. Pre-buy windows are closing - act fast if you have not locked in.
October
$2.72Prices climbing as heating season approaches. If you did not fill in summer, do it now before the next round of increases. Northern states see faster price increases.
November
$2.88Heating season underway. Prices are up significantly from summer lows. A 400-gallon fill costs $184 more than in July. Fill now to avoid peak December-January pricing.
December
$3.05Near peak pricing. Holiday delivery schedules can cause delays. Spot pricing may spike during cold weather events. Only buy what you need to get through to spring.
Annual Buying Calendar
Buy Now
June - August
$2.42 - $2.48/gal
Good Deals
Apr - May, Sep
$2.55 - $2.75/gal
Prices Rising
Oct - Nov
$2.72 - $2.88/gal
Peak Pricing
Dec - Feb
$3.05 - $3.12/gal
Pre-Buy Programs Explained
Pre-buy contracts are one of the most effective ways to lock in low propane prices for the entire heating season. Here is how they work, what they cost, and whether one makes sense for your situation.
How Pre-Buy Works
You agree to buy a fixed number of gallons at a locked-in summer price. The supplier delivers that propane throughout the heating season at the rate you locked in, regardless of market fluctuations. For example, if you lock in 800 gallons at $2.50/gal in July and winter prices rise to $3.15/gal, you still pay $2.50 for every gallon delivered. You pay for the full contracted amount upfront or in installments, depending on the supplier. Typical enrollment is May through August, with delivery from October through April.
Typical Savings
Pre-buy programs save 15-25% compared to winter spot pricing in most years. On 800 gallons of annual consumption, that translates to $360 - $520 in savings. The savings have been positive in roughly 85% of recent years, meaning pre-buy beats spot pricing the vast majority of the time. The risk is that in a year with unusually warm weather or a supply glut, winter prices could drop below your locked rate.
When to Sign Up
The best time to sign a pre-buy contract is June or July when prices are at their lowest. Most suppliers open enrollment in May and close it by mid-August. Early enrollment often gets the best rates because suppliers want to secure customers early. Contact your preferred suppliers in May to ask about their pre-buy program terms, minimum gallon requirements, and payment options.
Risks to Consider
The main risk is overpaying if winter prices are lower than your locked rate (uncommon but possible). You are also committed to a set number of gallons - if you use less, you still pay for the contracted amount. If you use more, the extra gallons are at the current market rate. Make sure you accurately estimate your consumption. Finally, pre-buy requires upfront payment, so you need the cash available in summer rather than spreading fuel costs across the winter months.
Budget Plans vs Pre-Buy
Budget plans spread your propane costs into equal monthly payments throughout the year, making budgeting predictable. They are different from pre-buy contracts and offer different advantages.
| Feature | Pre-Buy | Budget Plan |
|---|---|---|
| Price | Locked at summer rate | Varies - based on estimated annual cost |
| Payment | Upfront (full amount) | Equal monthly payments (12 months) |
| Savings | 15-25% vs winter spot | No guaranteed savings |
| Risk | Overpay if prices drop | Annual true-up - could owe more |
| Cash Flow | Large summer outlay | Predictable monthly amount |
| Best For | Homeowners with summer cash | Those who need budget predictability |
Propane Buying Cooperatives
Buying co-ops pool hundreds of homeowners to negotiate group rates from propane suppliers. They are free or very low cost to join and typically save 10-20 cents per gallon, which adds up to $80-160 per year on 800 gallons.
How Co-ops Work
The co-op solicits bids from multiple propane suppliers, using the combined purchasing power of all members as leverage. The winning supplier gets guaranteed customers in a defined area, and members get a discounted rate. Some co-ops negotiate a fixed discount off the daily rack price, while others lock in a seasonal rate. Members retain the right to leave the co-op at any time - there is no obligation to continue if a better deal comes along.
How to Find a Co-op
Start with your state energy office - many states maintain lists of active propane buying groups. County extension offices and rural electric cooperatives often run propane buying programs. The National Propane Gas Association (NPGA) website has resources. You can also search for "[your state] propane buying cooperative" online. If no co-op exists in your area, consider organizing one through your community - even 20-30 neighbors pooling purchases can get meaningful volume discounts from local suppliers.
2026-2027 Price Outlook
General supply and demand factors affecting propane prices this year.
The EIA Winter Fuels Outlook projects residential propane prices to average $2.70-2.95 per gallon for the 2026-2027 heating season, roughly in line with the prior year. US propane production remains robust, driven by continued natural gas processing in the Permian Basin and Appalachian region. Export demand from Asia continues to compete with domestic supply, providing a floor under prices.
Key factors to watch: a colder-than-normal winter would push prices toward the high end of the range. Any disruption to Gulf Coast infrastructure from hurricanes could cause temporary supply shortages and price spikes. The growing adoption of heat pumps is gradually reducing residential propane demand in some regions, which may put modest downward pressure on prices over time.
The bottom line for consumers: propane prices are expected to follow the normal seasonal pattern. Buy in summer, consider pre-buy if available, and get multiple quotes. The fundamental strategy does not change regardless of the macro outlook.
Frequently Asked Questions
What month is propane cheapest to buy?
July is typically the cheapest month to buy propane, with national averages around $2.42 per gallon in 2026. June and August are nearly as cheap at $2.48 and $2.45 respectively. This is because heating demand is at its lowest during summer, and suppliers are eager to move product to make room for winter inventory. Filling your tank in July instead of January can save approximately $280 on a 400-gallon fill based on the $0.70 per gallon seasonal spread.
Should I fill my propane tank in summer?
Yes, filling your propane tank in summer is one of the best money-saving strategies for propane users. Summer prices are typically 15-25% lower than winter prices. A 500-gallon tank filled to 80% (400 gallons) in July at $2.42/gal costs $968, compared to $1,248 in January at $3.12/gal, a savings of $280. Even if you do not use propane for heating in summer, filling up early means you start the heating season with a full tank at the lowest possible cost.
What is a propane pre-buy program and is it worth it?
A propane pre-buy program lets you lock in a fixed per-gallon price during summer for all your winter deliveries. You typically pay upfront for a set number of gallons at the current summer rate. If winter prices spike, you save significantly. Pre-buy programs save 15-25% compared to winter spot pricing in most years. The risk is that if winter prices drop below your locked rate (rare but possible), you overpay. Pre-buy is worth it for most homeowners because winter prices almost always exceed summer prices.
Do propane prices go down in summer?
Yes, propane prices reliably drop during summer months. The seasonal pattern has been consistent for decades: prices bottom out in June-August and peak in December-February. The main driver is simple supply and demand. Winter heating consumes roughly 80% of residential propane, so demand plummets in summer while supply remains steady. This predictable cycle creates a dependable buying opportunity every year. The only exception is if a major supply disruption (refinery outage, hurricane, pipeline issue) occurs during summer.
How do propane buying cooperatives work?
Propane buying cooperatives pool the purchasing power of many homeowners to negotiate lower prices from suppliers. Members join the co-op (usually free or with a small annual fee) and the co-op solicits bids from propane dealers for a group contract. Because the co-op represents hundreds or thousands of customers, suppliers offer discounts of 10-20 cents per gallon below individual retail rates. Some co-ops are run by state energy offices, county extension services, or nonprofit organizations. Check with your state energy office to find co-ops in your area.