Michigan Propane Price 2026: Cost Per Gallon, Suppliers & Delivery
Michigan residential propane averages $2.65 per gallon in 2026, slightly above the Midwest regional average of $2.47 and slightly below the national average of $2.78. Full breakdown of fill costs, verified suppliers across the Lower and Upper Peninsulas, and heating-season pricing guidance.
Michigan Propane Price Snapshot
EIA 2026 residential survey, Michigan series
Michigan is +$0.18 above the regional benchmark
Michigan is -$0.13 below the national benchmark
At Michigan average, summer rate; winter spot rates run higher
Cold-climate whole-home heating households fill 1 to 2 times per year
Typical Nov to Mar premium versus summer pre-buy contract
Why Michigan Propane Prices Are Moderate
Michigan sits in the middle of the US propane price distribution because three structural factors push in opposite directions and roughly cancel out.
On the supply side, Michigan benefits from proximity to two refining and pipeline complexes. To the southeast, the Sarnia, Ontario refining cluster supplies propane into Michigan via cross-border pipelines and rail. To the south, the Toledo refinery complex feeds the Lower Peninsula. Michigan itself is a Midwestern propane production state with storage and distribution hubs around the Lower Peninsula, and the Upper Peninsula has historic refining capacity that, while small, reduces the cost of serving remote customers. This is why Michigan rates ($2.65) sit well below cold-climate Northeast states like Vermont ($3.95) or Maine ($3.82) that depend on long supply chains from Gulf Coast and overseas terminals.
On the demand side, Michigan has a long and cold heating season, which lifts winter usage and creates the typical Nov to Mar price spike. The Upper Peninsula in particular is heavily propane-dependent because natural gas distribution is sparse outside Marquette and a handful of larger towns. Rural Lower Peninsula counties (especially in the north and west) also lean on propane for primary heat. That higher per-household consumption pulls Michigan prices above the Midwest regional average ($2.47), which is dragged down by lower-consumption Plains states like Iowa ($2.22) and Nebraska ($2.24) where propane is more often a secondary or agricultural fuel.
The net effect is a moderate-cost market: cheaper than the Northeast, slightly more expensive than the lowest-cost Midwest states, and modestly below the national average.
Michigan Propane Suppliers (Verified)
Eight suppliers verified to actively serve Michigan in 2026. Three national chains plus five Michigan-based independents. Quote at least one national and two locals before committing to an annual contract.
Largest US propane retailer. Online ordering via MyAmeriGas. Walk-in service discontinued, phone and online only.
MyFerrellgas portal handles ordering, billing, and tracking. Free Auto Fill program and flexible delivery windows.
Strong Southeast Michigan footprint. 24/7 emergency support at 1-800-PROPANE.
100 percent employee-owned. Free tank monitoring system bundled with auto-fill for households using 600+ gal per year.
Also operates EZ Mart convenience stores. Basic Courtesy Fill auto-delivery is free for accounts in good standing.
No long-term contracts. Budget billing and price protection programs available.
Strong rural Lower Peninsula reach. Residential and agricultural focus.
Almost a century in the state. Combined fuel oil and propane operation, useful if you run both.
Verification basis: each supplier confirmed via active Michigan service-area pages on their official websites as of 27 April 2026. Pricing not endorsed; this is a coverage list, not a price ranking.
Michigan Tank Fill Costs at $2.65 per Gallon
Tanks fill to 80 percent (the NFPA 58 safety rule allowing for thermal expansion). The usable capacity is the figure that matters for your bill.
| Tank size | Usable gallons (80 percent) | Fill cost at MI avg | Typical use case |
|---|---|---|---|
| 100 gal | 80 gal | $212 | Cylinder for grill, fireplace, dryer |
| 250 gal | 200 gal | $530 | Cooking, water heating, supplemental heat |
| 500 gal | 400 gal | $1,060 | Whole-home heating, 1,500-3,000 sqft |
| 1,000 gal | 800 gal | $2,120 | Larger home in cold climate, 3,500+ sqft |
Costs above use Michigan's 2026 average rate. Summer pre-buy contracts run 5 to 15 cents per gallon below this; January spot rates can run 25 to 50 cents above. Add a delivery fee of $0 to $25 per fill depending on supplier and route.
Michigan Heating Season Reality
The Michigan heating season runs roughly six months, October through April, with peak draw in January and February. The two halves of the state behave very differently.
Heating Assistance for Michigan Households
Three programs help Michigan households with heating costs:
- Michigan Home Heating Credit: refundable state tax credit, file form MI-1040CR-7 by 30 September. Covers any heating fuel including propane.
- DHHS State Emergency Relief (SER): emergency help if your heat is shut off or your propane tank is below 25 percent and you cannot pay. Apply through your local DHHS office or MI Bridges.
- LIHEAP: federally funded, administered through SER. Income-eligible households can receive a one-time crisis benefit toward propane.
If you anticipate trouble paying for a winter fill, apply for the Home Heating Credit early in the calendar year and contact your supplier in October about budget billing or fuel assistance referrals before the cold snap arrives.
Michigan vs Other Midwest States (2026)
| State | Price per gallon | 500-gal fill (400 usable) | Difference vs Michigan |
|---|---|---|---|
| Iowa | $2.22 | $888 | $-0.43/gal |
| Minnesota | $2.48 | $992 | $-0.17/gal |
| Wisconsin | $2.52 | $1,008 | $-0.13/gal |
| Indiana | $2.58 | $1,032 | $-0.07/gal |
| Ohio | $2.61 | $1,044 | $-0.04/gal |
| Michigan | $2.65 | $1,060 | baseline |
| National avg | $2.78 | $1,112 | +$0.13/gal |
Iowa and Wisconsin lead the Midwest on price thanks to refining and pipeline density combined with lower per-household propane usage. Michigan sits at the upper end of the regional range because of cold-climate consumption and Upper Peninsula delivery costs. See full state-by-state pricing for all 50 states.
Michigan Propane FAQ
Who has the cheapest propane in Michigan?
Why are propane prices different between the Upper Peninsula and Lower Peninsula?
Am I eligible for the Michigan Home Heating Credit?
When should a Michigan household lock in a summer pre-buy?
Should I switch from propane to natural gas in Michigan?
What is the best month to fill a propane tank in Michigan?
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Founder of Digital Signet, an independent research firm that builds data-led pricing and decision tools for US homeowners. PropaneCostPerGallon.com is built from the EIA's weekly residential propane survey, supplier-quoted retail rates, and real fill-up receipts collected from readers.