EIA residential propane, Alabama
Alabama propane prices: $3.52 a gallon
Latest EIA residential survey, week ending 30 March 2026, the final release of the 2025-26 heating season. Weekly updates resume in October; the wholesale benchmark below is live.
A Gulf state that does not price like one. Propane here is a minority fuel on long rural routes through the poultry belt and the Black Belt, while the cities run on natural gas and most other homes on heat pumps.
Latest EIA residential propane price
Source: EIA State Heating Oil and Propane Program, Alabama residential series. Refreshed automatically every Tuesday in season; wholesale daily.
Alabama at a glance
Latest survey$3.52/gal
vs week before+0.7c
vs 4 weeks before+3.8c
vs same week last year-1%
vs US ($2.67)31% above
Among 38 surveyed states26th cheapest
500-gal fill (400 usable)$1406
Week by week, 2025-26 season
Alabama against the US average
Every point is an EIA survey week. This season Alabama ran from a low of $3.42 (6 Oct) to a high of $3.52 (30 Mar), with the US average finishing at $2.67. Against the same week a year earlier it is -1%.
$3.42
Season low
6 October 2025
$3.52
Season high
30 March 2026
$3.55
Same week last year
31 March 2025, now -1%
$0.85
Wholesale today
Mont Belvieu spot, 15 September 2026, +17c vs a month ago
Source: EIA State Heating Oil and Propane Program, residential propane, full-service delivery, published October to March. Wholesale is the Mont Belvieu, TX spot price; retail usually follows it by four to eight weeks, which makes it the best off-season signal of where Alabama prices are heading.
What a fill costs in Alabama at $3.52
Tanks fill to 80% of their stated size to leave room for expansion, so a 500-gallon tank takes about 400 gallons. The right-hand column is the difference against the same fill at the US average.
| Tank | Usable gallons | Fill at $3.52 | vs US ($2.67) |
|---|---|---|---|
| 100 gal | 80 gal | $281 | +$67 |
| 250 gal | 200 gal | $703 | +$168 |
| 500 gal | 400 gal | $1406 | +$337 |
| 1000 gal | 800 gal | $2813 | +$674 |
A Alabama home heating on propane through a typical winter burns 1,000 to 1,500 gallons, so fuel alone runs about $3516 to $5274 at this price, before tank rent or a service plan. The average is a benchmark, not a quote: enter your ZIP to ask up to three local dealers what they would charge you.
Alabama against its South neighbours
The South spans a wide range, from the high-volume, low-cost markets of Texas and Oklahoma to rural, low-density states where propane is a thin niche. Alabama sits firmly in the pricier tier: its small household propane share and dispersed delivery routes push it well above the region's cheapest markets.
| State | Price/gal | 500-gal fill | vs US ($2.67) |
|---|---|---|---|
| Oklahoma | $2.27 | $909 | -15% |
| Arkansas | $2.37 | $947 | -11% |
| Louisiana (regional est.) | $2.93 | $1172 | +10% |
| Kentucky | $2.94 | $1174 | +10% |
| Texas | $2.99 | $1196 | +12% |
| Mississippi | $3.05 | $1221 | +14% |
| Georgia | $3.16 | $1266 | +18% |
| Tennessee | $3.25 | $1299 | +21% |
| North Carolina | $3.45 | $1380 | +29% |
| South Carolina (regional est.) | $3.51 | $1405 | +31% |
| West Virginia (regional est.) | $3.51 | $1405 | +31% |
| Alabama | $3.52 | $1406 | +31% |
| Virginia | $3.56 | $1426 | +33% |
| Maryland | $3.74 | $1496 | +40% |
| Florida | $4.71 | $1882 | +76% |
| South average | $3.26 | $1304 | +22% |
States marked regional est. are not surveyed individually by EIA and carry their PADD regional figure. Full table on prices by state.
Why Alabama runs 31% over the national average
On a map Alabama looks like it should be cheap. It sits in the same Gulf Coast supply region as Texas and Louisiana, with working terminals at Mobile and Theodore. The reading says otherwise, and the reasons are structural: they sit on the demand side, not the wholesale side.
Propane is a minority fuel, so overhead rides on fewer gallons.
Alabama is a warm state with a short heating season, and only a small share of homes heat with propane at all. Cities run on natural gas through Spire and municipal gas systems, and most other homes use electric heat pumps. That leaves propane on dispersed rural routes where each truck covers more miles per delivery, concentrating fixed delivery overhead onto a thin base of gallons. High overhead per gallon delivered, not a high wholesale price, is what shows up at the meter.
The demand base is rural and agricultural, led by poultry.
Alabama is one of the country's largest broiler-chicken producers, and the poultry houses of the north-Alabama belt run propane brooders to keep chicks warm. Add rural cooking, water heating, grain and other farm uses, and some north-Alabama winter heat, and the demand pattern is agricultural and seasonal rather than dense residential. It supports year-round routes in the poultry counties but does little to build the high-volume suburban density that pulls per-gallon pricing down elsewhere.
Gulf Coast access is midstream, not retail.
Alabama sits in PADD 3, the Gulf Coast supply region, and the Mobile and Theodore terminals are real. But that infrastructure is oriented to waterborne and petrochemical movements, not to residential bulk distribution into the interior. There is no large in-state retail storage hub feeding home-delivery routes, so the Gulf access that looks decisive on a map barely touches what a rural Alabama household pays.
Competition is thin off the interstate spine.
The I-65 and I-20 corridors carry several competing suppliers, but Black Belt and rural north-central counties often have only one or two active residential propane retailers. Where one company effectively owns a county's routes, its per-gallon margin holds well above competitive-zone pricing. This is the single biggest reason two Alabama homes an hour apart can get very different quotes, and the reason quoting three suppliers matters most in low-density areas.
Buying propane well in Alabama: four moves that change the bill
A dealer list is step one. In a thin, high-overhead market the gap between a careless account and a well-run one is a few hundred dollars a year. Here is where that money is won.
01
Confirm the LP-Gas Board permit
Alabama regulates propane through its own Liquefied Petroleum Gas Board under the Code of Alabama 1975, Section 9-17-100 and following. Every company that sells, dispenses or transports LP-gas needs a board permit, and installers need an individual licence earned by exam. Check the board's permit records from lpgb.alabama.gov or on (334) 850-2522 before you sign.
02
Lock summer, not autumn
Propane bottoms in the warm months when heating demand is near zero, and most Alabama suppliers run pre-buy and cap-price enrolment across the summer. Filling or capping in May through August routinely beats winter spot pricing. Ask for a cap-price contract, which keeps your savings if wholesale falls, and ask whether unused pre-paid gallons carry into the next season.
03
Quote three, especially off the interstates
The I-65 and I-20 corridors have several suppliers competing; many low-density counties have only one or two. That is exactly where per-gallon quotes spread widest, so pull one written quote from a national carrier, one from a regional family operator and one from a local-only retailer. Itemise per-gallon price, delivery fee, tank rental and any minimum-drop surcharge, and say up front if you own your tank.
04
Check ADECA LIHEAP eligibility
If your household income is at or below 150% of the federal poverty level, LIHEAP can help with heating (and cooling) costs. ADECA runs it through 18 Community Action Agencies, one covering your county. Apply through that agency, not ADECA directly. Start at adeca.alabama.gov/liheap or call 211, and apply early because agency funds are limited each season.
Verified on the state registry
8 of the 34 Alabama dealers on the APGA register
Source: Alabama Propane Gas Association member roster, captured 30 August 2026. A registry listing is a licence record, not an endorsement. Membership is voluntary rather than a state licence, so confirm a current permit with the Alabama Liquefied Petroleum Gas Board.
Alabama propane, the questions people ask
Where do the dealers in your Alabama directory come from?
The Alabama companies on this site are drawn from the Alabama Propane Gas Association member roster, the most complete public list of Alabama propane businesses available, captured on 30 August 2026. Association membership is voluntary, so this is a starting list rather than a legal qualification. The state authority is the Alabama Liquefied Petroleum Gas Board, and you should confirm any company's permit with the board before you sign.
How do I check whether an Alabama propane company is licensed?
Alabama is unusual in that propane is regulated by its own independent state board, the Alabama Liquefied Petroleum Gas Board, and not by the Department of Agriculture, the Public Service Commission, or the State Oil and Gas Board. Its authority comes from the Alabama Liquefied Petroleum Gas Act in the Code of Alabama 1975, Section 9-17-100 and following. The board permits the businesses that sell, dispense, and transport LP-gas, and separately licenses the individuals who install and service systems, who have to pass a board examination. Verify any company through the board's public permit records, reachable from its official site at lpgb.alabama.gov, or by phone on (334) 850-2522. Do not accept a fill from an operator with no board permit: insurance, inspection, and complaint handling all depend on that standing.
Does Alabama have a state energy-assistance program for propane?
Yes. The federal Low Income Home Energy Assistance Program (LIHEAP) runs in Alabama through the Alabama Department of Economic and Community Affairs (ADECA), which distributes it through 18 local Community Action Agencies that each cover a set of counties. Household income has to be at or below 150% of the federal poverty level to qualify. ADECA does not take applications itself: you apply through the Community Action Agency for your county, which sets its own intake schedule and can check your status or take a complaint. Federal LIHEAP targeting prioritises households with an older adult, a person with a disability, or a young child, and it covers both heating and cooling assistance. Start at adeca.alabama.gov/liheap or call 211 to find your county agency, and apply early because agency funds are limited each season.
Why does Alabama propane cost more than Louisiana or Mississippi next door?
Alabama residential propane is $3.52/gal in the latest EIA reading, 31% above the $2.67 national average and above both Louisiana and Mississippi. That is not a wholesale-supply story: Alabama sits in the same Gulf Coast supply region (PADD 3) as those states. The gap is about who buys propane and where. Alabama is a warm state, so only a small share of homes heat with propane at all; most of the urban population is on natural gas and most of the rest on electric heat pumps. That leaves propane on thin, dispersed rural routes where each truck covers more miles per delivery, and it concentrates delivery overhead on fewer gallons. Add limited supplier competition in low-density counties and you get a per-gallon retail price well above the region's cheaper, higher-volume markets.
What does a full propane tank cost at the Alabama price?
Tanks fill to 80% of stated capacity to leave room for thermal expansion (the 80% rule under NFPA 58). At the Alabama average of $3.52/gal, a 100-gallon tank fills for about $281 (80 usable gallons), a 250-gallon tank for about $703 (200 usable), a 500-gallon tank for about $1406 (400 usable), and a 1,000-gallon tank for about $2813 (800 usable). Real quotes commonly land 10% to 15% either side of the average depending on your county, whether you own or rent the tank, will-call versus automatic delivery, and whether you signed a pre-buy. Rural north-Alabama and Black Belt counties tend to sit at the high end of that range.
Should Mobile and Baldwin County homes keep propane for hurricane backup?
Often, yes. The Gulf Coast counties lose grid power for a day to several days during named storms, and propane is the most resilient backup fuel for that: it stores indefinitely without degrading the way gasoline and diesel do, the tank lives outdoors, and a 250 to 500 gallon residential tank can run a whole-home generator through a typical recovery period. For inland counties where outages rarely run long, a smaller dual-fuel or gasoline generator usually does the job and a large propane tank is more than you need. If you are sizing specifically for storm backup, target a 250 to 500 gallon tank rated for whole-home transfer-switch operation and keep it above 60% full from June through the end of November.
When is the cheapest time to buy propane in Alabama?
Late spring through midsummer, roughly May through August. Propane follows a predictable seasonal curve: it bottoms after the heating season ends and before the next winter's pre-buy window, and it peaks in January and February when cold-snap demand strains regional storage. Most Alabama suppliers run pre-buy enrolment (lock a per-gallon rate for next winter) and cap-price contracts (set a ceiling, still benefit if the market falls) across the summer. If your tank is below 30% in October, fill it rather than waiting for January in the hope prices drop. Read the contract: a cap-price beats a flat pre-buy in a falling market but carries a small per-gallon premium up front, and you should ask whether unused pre-paid gallons roll into the next season.
Should I switch from electric heat to propane in Alabama?
Usually not, and the reason is specific to Alabama. Most Alabama homes on electric heat are served by TVA in the north or Alabama Power in the south, both at residential rates below the national average, and most new construction uses heat pumps. A heat pump delivers several times the heat per unit of energy that resistance heat does and beats propane on running cost across almost the whole of Alabama's short winter. The real case for propane here is non-heating: cooking, water heating, a clothes dryer, generator backup, and pool or spa heat, plus rural homes with no natural-gas main. Swapping a working heat pump for a propane furnace at $3.52/gal does not pay back. Replacing a 20-year-old straight-resistance system can pay back over several years if you also move water heating and other loads to propane.
Which full-service propane companies cover each region of Alabama?
One operator per region, all drawn from the state association roster and all with a direct line. Gulf Coast (Mobile and Baldwin): Alabama Propane Exchange, Fairhope, (619) 316-8130, useful for the hurricane-coast market where propane doubles as generator backup. River Region: Allgas Inc. of Montgomery, (334) 265-0576, a long-standing Montgomery-area LP-gas dealer covering the central I-65 corridor. Tennessee Valley: Holston Gases, Decatur, (256) 355-3815, serving the Decatur, Huntsville and Shoals area where the poultry belt drives farm demand. Wiregrass: Dealers LP, Dothan, (334) 405-2660, for the peanut-and-poultry southeast. East-central hills: Hall's Propane Gas Co., Roanoke, (334) 863-6616, in the Randolph County hill country near the Georgia line. This is a starting point for a three-quote comparison, not a ranking, and Alabama review counts are too thin to rank on. Confirm each company's LP-Gas Board permit before you sign.
Keep reading
All Alabama dealers
The complete verified directory of 34 Alabama propane dealers, by city and ZIP.
Dealers near you
Enter a ZIP to see the closest dealers and ask up to three for a price.
Propane prices today
The daily wholesale benchmark and the live state summer surveys.
Prices by state
All 50 states side by side, with regional context.
What a fill costs
Tank sizes, the 80% rule and the national refill guide.
How to pay less
Pre-buy timing, switching, owned versus leased tanks.
Propane vs natural gas
Per-BTU economics for Alabama homes inside and outside the gas-main grid.