Heating Cost Blog
Propane and natural gas are both popular heating fuels, but they are not interchangeable — and the cost difference between them can be substantial. If you are building a new home, converting from one fuel to another, or simply trying to understand your heating bills, this head-to-head comparison covers everything you need to know about propane vs natural gas heating costs in 2026.
The short answer: natural gas is almost always cheaper than propane for home heating. At 2026 national average prices, natural gas costs about $12 per million BTU delivered, while propane costs about $32 — roughly 2.5 times more. But availability often dictates the choice: if your home does not have access to a natural gas line, propane may be your best gas-fired option.
To compare these fuels fairly, you need to understand the energy content of each:
| Property | Propane | Natural Gas |
|---|---|---|
| BTU per unit | 91,500 BTU/gallon | 100,000 BTU/therm |
| Common unit | Gallons | Therms or CCF |
| Delivery method | Truck to on-site tank | Underground pipe |
| Storage required | Yes (above/below ground tank) | No (on demand) |
One gallon of propane contains 91,500 BTU of energy. One therm of natural gas contains 100,000 BTU. So on a raw energy basis, a therm of natural gas contains about 9% more energy than a gallon of propane. But the real cost difference comes from the price per unit, not the BTU content.
Both propane and natural gas furnaces are available in the same efficiency ranges, because both burn in virtually identical equipment. The AFUE (Annual Fuel Utilization Efficiency) ratings break down as follows:
Because the efficiency ratings are the same for both fuels, the cost comparison boils down to a straightforward question: how much does each fuel cost per BTU?
At 2026 national average prices, the cost difference is stark:
| Metric | Propane | Natural Gas |
|---|---|---|
| Average unit price | $2.60/gallon | $1.10/therm |
| BTU per unit | 91,500 | 100,000 |
| Cost per raw million BTU | $28.42 | $11.00 |
| Cost at 80% AFUE ($/MMBTU delivered) | $35.52 | $13.75 |
| Cost at 92% AFUE ($/MMBTU delivered) | $30.89 | $11.96 |
| Cost at 96% AFUE ($/MMBTU delivered) | $29.60 | $11.46 |
Source: U.S. Energy Information Administration (EIA), residential average prices
Even with a high-efficiency propane furnace (96% AFUE) compared against a standard natural gas furnace (80% AFUE), natural gas is still more than twice as cheap — $13.75 vs $29.60 per million BTU delivered. Upgrading your propane furnace to high efficiency helps, but it cannot close the gap.
State-level prices vary significantly. Enter your state to see real propane and natural gas costs side by side.
Use the Free Calculator →National averages mask significant regional variation. The table below shows propane and natural gas prices in select states along with the resulting cost per million BTU (assuming a 92% AFUE furnace for both).
| State | Propane $/gal | Gas $/therm | Propane $/MMBTU | Gas $/MMBTU |
|---|---|---|---|---|
| Texas | $2.15 | $0.85 | $25.53 | $9.24 |
| Ohio | $2.20 | $0.95 | $26.13 | $10.33 |
| Minnesota | $2.10 | $0.90 | $24.93 | $9.78 |
| Pennsylvania | $2.75 | $1.15 | $32.66 | $12.50 |
| New York | $3.10 | $1.40 | $36.81 | $15.22 |
| Virginia | $2.50 | $1.10 | $29.69 | $11.96 |
| Michigan | $2.35 | $0.90 | $27.91 | $9.78 |
| North Carolina | $2.70 | $1.20 | $32.07 | $13.04 |
| Wisconsin | $2.15 | $0.88 | $25.53 | $9.57 |
| Connecticut | $3.30 | $1.65 | $39.18 | $17.93 |
Source: U.S. Energy Information Administration (EIA), state-level residential prices. Cost per MMBTU assumes 92% AFUE furnace.
In every state listed, natural gas is significantly cheaper than propane — typically 2 to 2.8 times cheaper. The gap is narrowest in states like Minnesota and Wisconsin where Midwest propane prices are relatively low, and widest in the Northeast where propane prices are highest.
Given the cost disadvantage, why do roughly 5 million American households heat with propane? The answer is almost always availability:
If your home currently heats with propane and you have access to a natural gas line, switching to natural gas is one of the highest-return home energy upgrades you can make. The conversion typically costs $2,000-$5,000 (for a new gas furnace and hookup) and can save $1,500-$3,000 per year in heating costs, paying for itself in one to three seasons.
Cost per BTU is the most important factor, but there are other considerations:
Both fuels are safe when properly installed and maintained. One key difference: natural gas is lighter than air and rises when it leaks, while propane is heavier than air and pools at ground level. Both have odorants added (mercaptan) so leaks can be detected by smell. Propane tanks require periodic inspection, while natural gas has no on-site storage to maintain.
Natural gas produces about 117 pounds of CO2 per million BTU. Propane produces about 139 pounds per million BTU. Both are cleaner than heating oil (163 lbs/MMBTU). On a per-BTU-delivered basis, natural gas has a lower carbon footprint — and because it costs less, you are also likely to use a more efficient system.
Propane prices are more volatile than natural gas, especially in winter. Cold snaps can cause propane prices to spike 50% or more in a matter of weeks because supply depends on truck deliveries and regional storage. Natural gas prices are more stable because the pipeline system provides continuous supply. Propane users can manage volatility by filling their tank in summer when prices are lower or by locking in a price with their supplier for the heating season.
Propane and natural gas furnaces are very similar. In many cases, a furnace can be converted from one fuel to the other by swapping the burner orifices and adjusting the gas valve — a job that typically costs $150-$500 for a technician. Boilers, water heaters, and gas fireplaces can also be converted. Maintenance requirements are essentially identical for both fuels.
See how much you could save by switching from propane to natural gas — or to a heat pump — with real prices for your state.
Try the Calculator →If you heat with propane and do not have access to natural gas, a heat pump may be a better alternative than staying with propane. At the national average electricity price of $0.165/kWh, a heat pump with COP 3.0 delivers heat for about $16 per million BTU — roughly half the cost of propane.
In states with cheap electricity (the Pacific Northwest, parts of the Southeast), the savings are even larger. Even in states with moderate electricity prices ($0.14-$0.18/kWh), a heat pump typically beats propane by 40-60%. The main exception is very cold climates where heat pump efficiency drops significantly, though modern cold-climate models have narrowed that gap considerably.
The Inflation Reduction Act offers up to $8,000 in heat pump rebates for qualifying households, which can make the switch from propane to a heat pump financially compelling even in colder regions.
If you are stuck with propane and switching is not an option, these strategies can reduce your bills:
Natural gas is consistently and significantly cheaper than propane for home heating — about 2.5 times cheaper per BTU delivered at 2026 prices. This is true in every state where both fuels are available.
The decision tree is straightforward:
For a personalized cost comparison using your state's actual energy prices, use our free heating cost calculator. It compares propane, natural gas, heat pumps, and seven other heating options side by side.
Our calculator compares 10 heating systems using real EIA energy prices for all 50 states.
Try the Calculator →