The short answer
Natural gas costs $11-$18 per million BTU in 2026; propane costs $25-$45 per million BTU — roughly 2-3x more on equivalent heat output. The difference is pipeline vs truck delivery. Natural gas needs utility infrastructure; propane works anywhere a truck can reach a tank. EIA tracks both fuel prices weekly.
Propane and natural gas are the two main non-electric heating fuels in the US. Natural gas is delivered by pipeline, billed monthly through a utility, and runs $1.10-$1.85/therm in 2026. Propane is delivered by truck to a tank on your property, billed per gallon at $2.50-$4.50/gal, and burns hotter (1 gallon propane = ~0.92 therms). On equivalent BTU basis, propane costs roughly 2-3x natural gas. The difference comes from infrastructure: pipeline gas is cheap to deliver, truck propane is not.
Cost comparison on equivalent BTU
Natural gas: $1.10-$1.85/therm = $11-$18.50 per million BTU (1 therm = 100,000 BTU).
Propane: $2.50-$4.50/gal = $27-$49 per million BTU (1 gallon = 91,500 BTU).
Heating oil: $3.00-$4.50/gal = $21-$32 per million BTU (1 gallon = 138,500 BTU).
Electric resistance: $0.13/kWh = $38 per million BTU (1 kWh = 3,412 BTU). Heat pumps cut this 2-4x via COP 2-4.
Which homes have which
Natural gas: requires utility pipeline. Common in cities and suburbs in deregulated and regulated states alike. ~50% of US homes use natural gas for heating, water heating, and cooking.
Propane: rural homes without pipeline access. Tank sizes 250 gal (small home), 500 gal (medium), 1,000 gal (large or commercial). Filled monthly to quarterly depending on use.
Most homeowners cannot switch fuels easily — extending a natural gas pipeline costs $20-$50/foot ($5,000-$25,000 for typical residential extension). Propane infrastructure (tank + lines) costs $1,500-$5,000 to install.
Cost control levers for each fuel type
Natural gas in deregulated states (Pennsylvania, Ohio, New York, Maryland, Illinois, Indiana, Georgia, and several others): shop suppliers via the switching-natural-gas-supplier-step-by-step process. Lock a fixed per-therm rate ahead of winter to insulate from the December-to-February wholesale spike. Utility delivery charges are regulated and the same regardless of supplier — only the supply portion changes when you switch.
Propane pricing has three main programs from most dealers. Pre-buy contracts let you lock summer prices for the next winter season delivery — typically signed in May through August for October-through-March supply. Cap programs (also called price-protected programs) cap your maximum price at a strike level for a small per-gallon fee, with downside if the market falls below the cap. Budget plans simply spread expected annual cost across 12 equal monthly payments. The heating-oil-pre-buy-vs-cap-vs-market guide covers the same mechanics for oil and applies directly to propane.
Convert to a heat pump for the largest single move on heating cost. A modern cold-climate heat pump replaces propane heat at 30 to 50 percent lower operating cost in most US climates. Federal IRA heat pump rebates (up to $8,000 income-qualified plus a 30 percent tax credit up to $2,000) make payback 4 to 7 years on most installs. The cold-climate-heat-pump-vs-furnace guide walks through the conversion math by climate zone and fuel.
For partial conversions, a heat pump as primary plus the existing furnace as cold-day backup (a dual-fuel setup) cuts propane use 60 to 80 percent without giving up the furnace insurance. Most homes with existing forced-air ductwork can convert to dual-fuel for $4,000 to $9,000 after rebates. The dual-fuel-heat-pump-furnace guide covers the configuration.
Infographic
Annual heating cost — propane vs natural gas vs heat pump
Recap
Bottom line
The natural-gas versus propane decision is rarely an actual choice for most US homeowners — it is determined by what infrastructure exists at your address. Roughly 50 percent of US homes have access to natural gas pipeline, and homes without it run on propane, oil, or electric resistance heat. Where pipeline natural gas is available, it is almost always the cheaper option per million BTU, often by a factor of two to three.
For homes already on propane, the highest-impact move is usually not switching fuels but converting to a heat pump for primary heating, while keeping the propane furnace as a backup for the coldest 5 to 10 percent of days. Federal IRA rebates cut payback to 4 to 7 years on most installs. For homes already on natural gas, the cheapest play is supplier shopping in deregulated states (where it is available) plus thermostat optimization. Either way, the right framework is to think about your heating cost as the product of usage (which you can reduce through efficiency) and per-BTU price (which you can shop), and attack both levers.
Want Seenra to run this for your account?
Forever free for households. Commercial accounts get a same-day quote with full commission disclosure. No credit pull, no on-site visit, no service interruption.
Get my fixed-rate quote →Common questions