EIA residential propane, Tennessee
Tennessee propane prices: $3.25 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 middle-of-the-South market where propane fights an unusually cheap incumbent: TVA electricity thins the customer base, Gulf Coast pipeline access keeps wholesale moderate, and Appalachian route economics decide what an individual bill looks like.
Latest EIA residential propane price
Source: EIA State Heating Oil and Propane Program, Tennessee residential series. Refreshed automatically every Tuesday in season; wholesale daily.
Tennessee at a glance
Latest survey$3.25/gal
vs week before-0.1c
vs 4 weeks before+1.6c
vs same week last year-1%
vs US ($2.67)21% above
Among 38 surveyed states24th cheapest
500-gal fill (400 usable)$1299
Week by week, 2025-26 season
Tennessee against the US average
Every point is an EIA survey week. This season Tennessee ran from a low of $2.98 (6 Oct) to a high of $3.25 (23 Mar), with the US average finishing at $2.67. Against the same week a year earlier it is -1%.
$2.98
Season low
6 October 2025
$3.25
Season high
23 March 2026
$3.27
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 Tennessee prices are heading.
What a fill costs in Tennessee at $3.25
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 $3.25 | vs US ($2.67) |
|---|---|---|---|
| 100 gal | 80 gal | $260 | +$46 |
| 250 gal | 200 gal | $650 | +$115 |
| 500 gal | 400 gal | $1299 | +$230 |
| 1000 gal | 800 gal | $2598 | +$459 |
A Tennessee home heating on propane through a typical winter burns 1,000 to 1,500 gallons, so fuel alone runs about $3248 to $4872 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.
Tennessee against its South neighbours
The Gulf Coast cluster (Texas, Louisiana, Oklahoma) sits at the bottom on wellhead access. The Mid-Atlantic South (Maryland, Virginia, West Virginia, North Carolina) runs highest on longer routes and colder demand. Tennessee sits in between, near the regional average.
| 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 Tennessee runs 21% over the national average
Tennessee is neither a Gulf Coast bargain nor a high-cost outlier. The forces behind that are structural: cheap TVA electricity that thins the propane customer base, Gulf pipeline access that keeps wholesale moderate, and Appalachian route economics that lift bills in the east.
Cheap TVA electricity thins the propane base.
The Tennessee Valley Authority delivers some of the lowest-cost residential power in the country, and a large share of Tennessee homes heat with electricity as a result. That leaves propane a smaller, more dispersed customer base than a state of Tennessee's size would imply, so suppliers spread fixed costs over fewer gallons. It is a demand story more than a supply one: propane here competes against a genuinely cheap incumbent.
Gulf Coast pipeline and terminal access keeps wholesale moderate.
Tennessee has no in-state natural-gas-liquids production, but it draws propane from the Gulf Coast through the interstate pipeline and rail network feeding terminals along the I-40 and I-65 corridors. That access keeps wholesale moderate rather than carrying the rail-to-truck premium interior Northeast states pay. It does not get Texas wellhead pricing, though, which is why Tennessee still sits above the Gulf Coast cluster.
Appalachian east versus Middle-Tennessee delivery density.
Most Tennessee propane sells into rural East Tennessee, the Cumberland Plateau, and off-main Middle and West Tennessee farms. East Tennessee routes climb into low-density mountain terrain where a bobtail covers more miles per delivered gallon, so the same statewide wholesale turns into a 20 to 40 cents a gallon retail spread between the eastern counties and the denser Middle Tennessee loops. The state average hides that gap.
Memphis and Nashville natural-gas dominance.
Memphis Light, Gas and Water and the Nashville-area gas utilities give the two biggest Tennessee markets cheap natural-gas service, which pushes urban propane into narrow niches: gas ranges and dryers, standby generators, pool heat and outdoor cooking. Suppliers cannot lean on metro-route density to subsidise rural delivery, so the rural east and the farm belt carry propane economics largely on their own.
Buying propane well in Tennessee: four moves that change the bill
A licensed-dealer list is step one. The gap between a careless propane account and a well-run one in Tennessee is usually a few hundred dollars a winter, and one of these moves is deciding whether you should be on propane at all.
01
Verify the licence first
Any company filling LP-gas in Tennessee must hold a dealer licence from the State Fire Marshal's Office (Liquefied Petroleum Gas Board) inside the Department of Commerce and Insurance. Search the name at verify.tn.gov. Insurance, tank inspection and dispute cover all hinge on that standing. If a firm is not on the register, do not sign.
02
Weigh propane against TVA power
Tennessee is unusual: TVA electricity is cheap enough that a heat pump beats propane for space heat in most of the state. Before you commit to a propane furnace, price a heat pump too. Propane earns its place in higher East Tennessee and Plateau homes, off-main rural properties, and houses already running propane for water heat, cooking or a generator.
03
Lock summer, not autumn
Tennessee wholesale bottoms in mid-summer. Most suppliers run pre-buy from May 1 to August 31, and locking 20 to 40 cents a gallon below winter spot banks around $300 to $500 on a 1,000-gallon household. Ask for a cap-price contract rather than a flat pre-buy, and ask whether unused pre-paid gallons roll forward. In the rural east, quote three dealers before you sign.
04
Check LIHEAP through THDA
Tennessee's LIHEAP is run by the Housing Development Agency and delivered through 19 Community Action Agencies across all 95 counties. Households at or below 60% of State Median Income can receive $174 to $750 toward fuel. Apply at thda.smartsimple.us or through your county agency, early in the season.
Rated by customers
Tennessee propane dealers worth calling first
A short, hand-checked list with strong public review scores, spread across the state. Ratings were read from the platforms named in August 2026 and move over time; a high score is where to start, not a guarantee. Get three written quotes whoever you call.
Middle Tennessee / Nashville region
Advanced Propane
Lebanon, Tennessee
5.0137 reviews, Birdeye
Independent, locally owned since 1992, serving Middle Tennessee and southern Kentucky from Lebanon with satellite offices in Cookeville and Hartsville. Automatic delivery, tank installs, and appliance service.
See the reviews ›East Tennessee / Knoxville and the Plateau
Holston Gases
Knoxville, Tennessee
4.924 reviews, Birdeye
Family-owned and locally managed since 1958, with a large bulk-transport and bobtail fleet and 24-hour service across East Tennessee, the Upper Cumberland, and into Chattanooga. Smaller review base but a long operating record.
See the reviews ›Tri-Cities / Northeast Appalachia
Admiral Propane
Blountville, Tennessee
4.6162 reviews, Birdeye
Independent, locally owned for more than two decades, with 168,000 gallons of storage at Blountville and a second yard in Greeneville. Puts residential customers ahead of a corporate head office across the Kingsport, Johnson City, and Bristol triangle.
See the reviews ›Verified on the state registry
8 of the 508 Tennessee dealers on the Licensed register
| Dealer | City | Phone |
|---|---|---|
| A-1 Hitch Center, L.L.C. | Kingsport | listing |
| A-L Compressed Gas | Dickson | listing |
| AAA RV Park | Union City | listing |
| Ace Building Center | Trenton | listing |
| Ace Hardware / Freds Of Parsons, Inc. | Parsons | listing |
| Ace Hardware Of Bearden, LLC | Knoxville | listing |
| Ace Hardware Of Brainerd | Chattanooga | listing |
| Ace Hardware Of Cleveland, Inc. | Cleveland | listing |
Source: Tennessee LP-Gas dealer register, State Fire Marshal's Office, captured 22 August 2026. A registry listing is a licence record, not an endorsement. Confirm current standing on the verify.tn.gov lookup.
Tennessee propane, the questions people ask
Where do the dealers on this page come from?
Every company drawn from the register is on the Tennessee LP-Gas dealer list maintained by the State Fire Marshal's Office (Liquefied Petroleum Gas Board) inside the Department of Commerce and Insurance, published for public lookup at verify.tn.gov. It was captured on 22 August 2026 and filtered to companies whose licence status is currently "Licensed". The state register lists each dealer's county and licence-expiry date but does not publish phone numbers, so use the supplier page or the ZIP tool to reach a company. Being on the register is a licence check, not an endorsement, so still get three written quotes. The rated shortlist is separate: a hand-checked set of dealers with strong public review scores.
How do I check whether a Tennessee propane company is licensed?
Tennessee LP-gas dealers, installers and fitters are licensed by the State Fire Marshal's Office (Liquefied Petroleum Gas Board), a division of the Department of Commerce and Insurance, not the Department of Agriculture. Licence classes run from Class I bulk storage (30,000 water-gallon minimum) through Class II bottle storage and Class III service-station and motor-fuel operations. Every active dealer facility needs a Responsible Managing Employee who has passed a state exam on fire-marshal LP-gas rules. Verify any company by name at verify.tn.gov before you sign. If a firm solicits you and is not on the register, do not sign and email [email protected].
How does Tennessee propane compare with the rest of the country?
Tennessee is a middle-of-the-pack Southern state. The current EIA average for Tennessee is $3.25 a gallon against a $2.67 national average, so it runs about 21% above the national number, against a $3.26 South regional average. It sits above the Gulf Coast cluster of Texas, Louisiana and Oklahoma. Gulf Coast pipeline and terminal access keeps Tennessee wholesale moderate; what pushes individual bills higher still is route economics in the Appalachian east, not statewide supply.
Why does East Tennessee propane cost more than Middle Tennessee?
The statewide average hides a real east-to-middle spread. Rural East Tennessee and the Cumberland Plateau (Sevier, Cocke, Hamblen, Greene, Cumberland, and the Cherokee National Forest fringe) tend to run 20 to 40 cents a gallon above the denser Middle Tennessee corridors around Nashville, Murfreesboro and Columbia. The reason is delivery density: a bobtail truck on a mountain route in the east covers more miles and burns more diesel per delivered gallon than one working a compact Middle Tennessee farm-and-residence loop. In the east the gap between the cheapest local independent and the priciest national quote can reach 40 to 60 cents a gallon, so quoting at least three licensed dealers matters more there than anywhere else in the state.
Am I eligible for LIHEAP propane assistance in Tennessee?
Tennessee's Low-Income Home Energy Assistance Program (LIHEAP) is administered by the Tennessee Housing Development Agency (THDA) and delivered through 19 local Community Action Agencies and Human Resource Agencies that together cover all 95 counties. Eligibility is set at or below 60% of Tennessee State Median Income; for the 2025-2026 program year that is roughly $32,052 a year for a single-person household and about $41,904 for a two-person household. Benefits range from $174 to $750 per household depending on energy burden, paid toward your propane supplier or utility. Applications opened on 1 November 2025 through THDA's online portal at thda.smartsimple.us, or apply through your county's local agency. Apply early, because crisis-only requests in the January-to-February peak often face delivery delays.
Should I heat with propane or stick with TVA electricity in Tennessee?
In most of Tennessee, stick with electricity. The Tennessee Valley Authority supplies some of the lowest-cost residential power in the country (often around $0.10 to $0.13/kWh retail), and a correctly sized heat pump delivers space heat at a per-BTU cost that beats propane at the current Tennessee average of $3.25 a gallon. Propane wins in three situations: higher-elevation East Tennessee and Plateau homes above roughly 2,500 ft where heat-pump output falls and a propane furnace or hybrid makes sense; rural homes already off the gas main where a propane-plus-heat-pump hybrid smooths winter peaks; and homes that already run propane for a tankless water heater, range, dryer, generator or pool, where adding space heat costs little at the margin. For a Nashville or Memphis home with a natural-gas main, neither propane nor a conversion pays.
When is the best time to fill my propane tank in Tennessee?
May through August. Tennessee wholesale propane bottoms in early summer when refinery output is high and residential demand is near zero, and most Tennessee suppliers run pre-buy or budget-lock enrolment from May 1 to August 31. Locking 20 to 40 cents a gallon below winter spot on a 1,000-gallon household saves roughly $300 to $500 a year. Read the contract: a cap-price deal lets you keep the savings if wholesale falls, while a flat pre-buy fixes the price in either direction. Ask whether unused pre-paid gallons roll into the next season, and set your automatic-delivery trigger at 30% rather than 20%, since some Tennessee companies reward the route flexibility with a small per-gallon discount.
Is a propane standby generator worth it in Tennessee?
Tennessee sits in Dixie Alley, with a peak tornado window in April and May and a secondary peak in November, plus summer heat-wave grid stress and winter ice storms across the east. That makes a propane standby generator a stronger case here than in most Southern states. A typical 14-22 kW air-cooled unit burns about 1.5 to 3.5 gallons an hour at load, so a 500-gallon tank (400 usable) gives roughly five to ten days of runtime. At the current Tennessee price a full 500-gallon fill costs about $1299. If you already heat with propane, sizing the tank to carry the generator on top of winter heat is the cheapest path; a generator-only 250 or 500-gallon setup with a transfer switch usually runs $4,000 to $8,000 installed.
Keep reading
All Tennessee dealers
The complete verified directory of 508 Tennessee 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 electric heat
The TVA-electric versus propane math that decides most Tennessee heating choices.