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CostHelper > Home and Garden  > Electrical, HVAC & Energy Efficiency > Propane Tank

Propane Tank Cost

How Much Does a Propane Tank Cost?

low costRent or Lease: $0-$250 a yearaverage costBuy Aboveground Tank: $450-$2,500high costBuy Underground Tank: $1,800-$3,500
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Propane is a gas that turns liquid under moderate pressure, so propane storage tanks are pressurized. They're designed to be installed either aboveground or underground (with special coatings to prevent rust and corrosion). Although there's a wide range of sizes available, aboveground residential tanks typically come in 120, 250, 500 or 1,000 gallons and underground tanks are usually 500 or 1,000 gallons. A storage tank can be leased from the propane company (common in many areas) or owned by the homeowner (providing the ability to shop for the best price but also responsibility for maintenance and repairs).

Typical costs:

  • Most propane dealers will provide, install and maintain a residential propane storage tank, renting or leasing it to the homeowner. In some cases the use of the tank is free if the homeowner buys a minimum amount of propane each year. (Minimums vary by location and tank size, and can range from 100-1,500 gallons.) More often, the propane company charges a fee of anywhere from $25-$250 a year but averaging around $75-$130 annually, depending on local rates, the size of the tank and whether it's aboveground or underground. Leased tanks typically are installed for free. A Conneticut propane dealer[1] leases a 120 gallon tank for $80 a year and a 500-gallon tank for $225, with a minimum three-year contract. In addition to the lease fee, many companies also charge an extra 5 to 30 cents per gallon on deliveries to a leased tank (and some consumers have reported extra charges of 50 cents to $1.50 or more per gallon for leased tanks), which adds to the total cost of a leased tank.
  • Buying and installing a customer-owned aboveground propane tank runs about $450-$1,000 for a 120- or 250-gallon tank and $800-$2,500 for a 500-gallon aboveground tank. Installing an underground tank can cost around $1,800-$3,000 for 500 gallons and $2,000-$3,500 or more for 1,000 gallons. A Wisconsin propane dealer[2] charges $1,599 to install a typical 500-gallon aboveground tank and $2,995 for a 1,000-gallon underground tank.
Related articles: Propane, Heating Oil, Heating Oil Tank, Furnace

What should be included:
  • All tank leasing requirements and fees should be spelled out in a written contract, which typically requires the homeowner to buy propane only from the company that owns the tank for anywhere from three to five years. In most states it's illegal for a propane company to fill a tank leased from another company. One advantage of a leased tank is that the propane company is responsible for all repairs and maintenance. When the contract ends, instead of renewing it's possible to switch to another propane supplier, but the old tank will need to be removed and a new one installed.
  • A propane tank needs to be located near an all-weather road, so delivery trucks can reach it with their hoses (usually about 100 to 150 feet long) in bad weather. Aboveground tanks should typically be placed above the soil and on level ground, and painted a reflective color. A Texas propane company describes the parts[3] of a typical propane tank.
  • Burying a 500-gallon tank requires a hole approximately 5 feet deep, 5 feet wide and 12 feet long, according to presents a video[4] of the underground installation process. Experts recommend professional installation, and it's best to take pictures and notes of the installation (as a permanent record).
  • Most areas have specific regulations governing where and how a propane tank can be installed, and usually permits are required from the local fire department. Some areas also require a plumbing permit from the local planning department.
Additional costs:
  • Permit costs usually range from free to $25-$50 each, although a few areas charge more. Generally, propane permits don't need to be renewed -- they're good for the life of the tank.
  • Most propane companies include 25 to 35 feet of copper piping and fittings in their standard installation. If the tank is farther from the home there can be additional costs of about $1-$2 per foot.
  • In some states the fine can be as much as $10,000 fine if a propane dealer fills up a tank owned by and leased from another company. If the homeowner lies about owning the leased tank, then the homeowner is legally responsible for the fine.
  • Used propane tanks are often sold on craigslist or other sites for anywhere from 75 cents to $1.25 per gallon capacity ($375-$625 for a 500-gallon tank), depending on local prices. Check with local propane dealers about costs and requirements for testing and certifying a used tank.
Shopping for a propane tank:
  • Major manufacturers of propane tanks include American Welding & Tank[5] and Trinity Industries[6] .
  • Large, national propane dealers (which sell or lease tanks) include AmeriGas[7] , FerrellGas[8] and Suburban Propane. There are many smaller companies, and the National Propane Gas Association provides referrals to propane retailers[9] by zip code.
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What People Are Paying - Recent Comments

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Bought the tank
Amount: $750.00
Posted by: Glad I did in State college, PA.Posted: August 23rd, 2017 06:08AM
Size: 350Type: Below ground
I was under the impression that I onley had to fill the tank from amerigas @250gal per year from them for five years.
After five years their price was $3.50 per gal. I decided to shop for prices. The first thing other companies asked, do I own the tank?
The answer to that I learned was no I didn't. After going back and forth with amerigas rep I purchased the tank from them at a pro rated amount of $750.00. This sounds like a lot of money,but my first purchase of propane was at $1.60 per gal.wich payed for half the cost and was payed for on the following purchase of propane.
My point here is to be sure what you are agreeing to.
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Amount: $801.00
Posted by: Mrs Me in Florissant, CO.Posted: April 3rd, 2017 11:04AM
Size: 500 gallonsType: Propane above ground
Amerigas owns our tank but doesn't 'charge a leading fee'. Our 1200 sq ft home sat vacant for 2 months set at 49 degrees. We received a bill for $801. They were charging us $4.98 a gallon. I agree with others on here saying they are thieves.
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Just filled 2 tanks in New Mexico (Dec 2016)
Amount: $676.00
Posted by: Alton in Jal, NM.Posted: December 14th, 2016 04:12PM
Size: 250 gal x2Type: leased tank
My vendor, Pinnacle Propane, has served me well these last 3 years. $2.24/Gal last week, with about $10 total small fees per delivery. Prompt service, scheduled when I needed them on site. I have bought regulators in the past for less than $85. High volume, low pressure. Today I was quoted $24/year for a 250-gal tank rental.
If you're in the right part of New Mexico or West Texas, you might just contact them and see.
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Hunter Propane in Sanford, NC
Amount: $0.00
Posted by: Bfloxword in sanford, NC.Posted: October 14th, 2016 08:10PM
Size: 120 galType: propane
We've rented our tank from Hunter for 4 years and have yet to use all the original fill. Now they want $3.50/gallon to refill it...and they are buying now for less than $0.60/gallon. To replace their tank and to get a price of around $2/gallon, I'll have to pay $100 to have the new tank set. The fireplace is nice from time to time, but I hate like the devil to be gouged. I'm looking at buying my own tank and putting the refill up for bid, but I doubt that will be any better, since I use so little.
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propane tank
Amount: $200.00
Posted by: rewesling in Pocatello, ID.Posted: July 19th, 2015 01:07PM
I know this is not your in field, but is there anyone out there that is certified to sell, or build, (other than Manchester) the ASME Frame mounted/Underbody Horizontal propane tanks for Motorhomes? This hunt has been going on for 3 months now and has come to buying the WRONG size tank from Manchester just so our motorhomes can stay out long! Is it that big of a hassle to build ASME tanks for the publics needs? ANY help finding these tanks would really be of help to all of us in the same predicament! Thanks Rod.
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Installing 1000gal tank in new construction
Amount: $4,457.00
Posted by: Greg W. in Lake Placid, NY.Posted: July 9th, 2015 08:07AM
Size: 1000 galType: Buried
New construction. The price includes the tank at $2573. The parts come to $1404 which includes 3 regulators, a high pressure and two low pressure. On low pressure for the house to feed the boiler, cook top and two fireplaces. The other low pressure to feed a 14kW generator. Over 100 feet of line to the generator and another 15 ft of line to the house. Plus some other miscellaneous fittings.
The balance is $480 of labor.
A contract price would be free but I was told I would be charged 40cents more per gallon for the fuel. I figured I will be using about 2000gal a year of fuel so I it would take me about 5 years to recoup my investment.
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Amount: $850.00
Posted by: Lilalue in Mexico, NY.Posted: June 13th, 2015 04:06PM
Size: 200 GallonsType: above ground Leased
These guys are thieves. Because I used so little fuel they charged me double what they were charging everyone else in the area. Because we were snowed in I was forced to remain with this company. This year they sent me an invoice with a proposal for a price lockin for 2016 with a fee of $119! HAHAHAHA! Really? If they were the last propane company on earth, I wouldn't do business with them.
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Propane is cheap and easy
Amount: $400.00
Posted by: Mack_Pittsburg in Pittsburg, KS.Posted: March 18th, 2015 07:03PM
Size: 1000 gallonType: Above Ground
I live in a free state. Bought my first propane tank about 28 years ago. Paid $300 for a 500 gallon half full. I bought propane on contract 1 year over the years. It wound up costing more than the open market. Last fall I still had about 200 gal in my 500 gal but purchase a 1000 tank for $400 and bootlegged it home since it had 200 gallon left in it. My 500 gallon tank ran out while we were baking a pizza (I knew the level gauge was bad) so I hooked up a 100 lb tank to get us heat through the night and finish the pizza. I called my son and told him that he had to come home in the morning so we could swap out tanks. He showed up with a buddy and a skid steer loader. We moved the 500 gal tank out, set new blocks for the 1000 gal and set it in place. Was a little late buying propane and purchased it for $1.60/gallon. As soon as the suppliers get off of contract, I plan on filling the tank since wholesale propane is back down to 55 cents per gallon.
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Amount: $35.00
Posted by: KenR in Iowa City, IA.Posted: March 8th, 2015 02:03PM
Size: 500Type: LP
We rent the tank. Did a conversion from lp to geotherm heating, went from using about 1600 gallons a heating season to about 80 gallons (gas fireplaces only). Saving about $2K per year. Cooling cost for AC saves an addition $500 per year. Don't pay high rates for lp, kill the demand and buy a geothermal system.
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bought from Hartmann's, after lease Durham, NH
Amount: $1,950.00
Posted by: [email protected] in DURHAM, NH.Posted: March 3rd, 2015 04:03PM
Size: 2x120Type: above ground
Bought my 2-120's after having them for 5 years...figured they would pay for themselves after 7 years for certain since I wasn't going anywhere....and that was just in the 30 cents per gallon I was paying extra. They sold them to me at a fair price, but now I pre buy and they have been a very honorable company. After reading all the unreputable comments, I guess I got lucky....they are a stand up group.
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Propane Tank Ownership and easements.
Amount: $0.00
Posted by: Gary in Johnston County, NC in Angier, NC.Posted: February 14th, 2015 10:02AM
Size: 320 gallonType: Unknown
I purchased a home in NC & I thought that I owed the tank as I was never notified any differently. After I contracted for a fillup I was told that they own the tank and the first year lease is free, but after that it is about $100 per year to lease it. I do not know of any hidden charges as of now. They want me to sign a paper that they own the tank, as well as a contract that spells out that I would have to pay to remove the tank, and an easement to grant them authority to remove the tank at my cost. I do not know if it is illegal to have the tank filled by another supplier in NC. I am new to this and getting a real education. I do not know if I should sign their papers, and I really do not know if they really own the tank. Any advice would be appreciated. I had asked to see proof from the previous owners showing they own the tank, or a title to the tank. I also what to see the permits filed for the tank and to see if it was filed by the propane company or the previous owners.HELP Me.
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new 500 underground tank
Amount: $2,500.00
Posted by: elcheapo in smithtown, NY.Posted: December 29th, 2014 08:12AM
Size: 500galType: underground owned
was tired of gas company playing priceing games over the winter. had 2 420's they owned. replaced with 500 underground. total cost was around 2500 installed with permit, plumber and excavator. tank was 1400 cash. excavator was 650 cash. the rest was permit and plumber. they filled tank at 2.29gal. the process took a while but overall happy with result. also dont have to look at those ugly 420's anymore.
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Amount: $10,000.00
Posted by: F Holtzman in Front Royal, VA.Posted: December 12th, 2014 08:12AM
Size: 1000Type: underground
I purchased a home and the tank was owned by the previous owner. Holtzman Propane asked us to sign an agreement for them to provide our propane service. In the fine print at the bottom it says THEY own the tank and we are leasing it. SEVERAL years later after a dispute on minimum use charges I ended up having to buy MY tank again from them for $2400. They went so far as to disconnect my service after I paid for 2500.00 for a recent fill up. I later learned they had been charging me $1.00 more per gallon than the going rate the entire 10 years this went on!!!! They are less than honorable to say the least. Scam artists. PS.... they just pulled the same trick on my unsuspecting neighbor.....
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NOT Vieing for a TV program
Amount: $180.00
Posted by: Tell it like it is in Eufaula, OK.Posted: November 29th, 2014 06:11PM
Oklahoma you can rent a tank by the year for around$70.00 a year. The company will set your tank for free if you are purchasing at least 100 gallon @ around$1.80 per gal and use them for all your propane. This will last you a month or so depending on how cold it is. You can buy your tank if you prefer they sell 500 gal tanks from $775.00 to $1000.00. Propane is typically cheaper in the summer so if you fill it then it will cost less and probably not need more than 2 fills in a year. If the tank is yours you can get which ever company is cheaper to fill your tank. If it is a rented tank you will need to get whoever owns the tank to fill it or bring at least 100 gals to avoid service charges.
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Holtzman propain
Amount: $0.00
Posted by: a user in Mt Jackson, VA.Posted: November 21st, 2014 06:11AM
Size: 500Type: propain
I used to rent from Todd Holtzman. Long story short in three years I cut over 30 mice and over 50 bats at this house and his excuse was this is an old house. At the end he took $250 of my deposit due to what he calls damage to his menthol which was there already and only gave me $240 credit on $600 propane I paid, according to his employees, office expense.
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Propane cost
Amount: $0.00
Posted by: Chase in Daleville, AL.Posted: November 14th, 2014 09:11AM
Size: 250Type: Amerigas
These guys are such a rip off, I did some checking around and Amerigas is charging almost double of what some other places are charging. Also I ask if they would sale me a used tank and they said they only sell new tanks. My question is why would they not sell me a used tank, I have had my tank for 30 years and they have not so much as put a fresh coat of paint on it. They can kiss my ask.
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Propane tank rental
Amount: $835.00
Posted by: Arkancharlie in Eureka Springs, AR.Posted: November 12th, 2014 07:11PM
Size: 500galType: above ground
Must buy propane from Amerigas. Today, $2.21 per gal with $100 delivery if tank not filled. Anderson's price: $1.79 per gal. Amerigas leak test: $60 ( I did it myself last time because it was cold!)
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propane costs
Amount: $950.00
Posted by: robert simpson in nottingham, PA.Posted: November 3rd, 2014 04:11AM
Size: 500Type: underground
Amerigas the ultimate rip off. Propane has to be the worst possible way to heat a home due to dealing with propane companies. I cannot believe that states allow this to go on it is nothing short of robbery.
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Anderson's, Arkansas
Amount: $600.00
Posted by: Gloria Whitchurch in Thayer, Mo, AR.Posted: October 31st, 2014 10:10PM
Size: 120 galType: POD
I have been quite impressed, so far, with Doug at Anderson's and with all I have met. Offering lowest cost options, and payments if wanted, and appear to be very honest and upfront.
Bought a new POD, which is OURS and can be filled by best price search, but further, they are honoring a pre-buy agreement.
MFA cost us an arm and a leg last year and their statements are hard to understand.
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Propane Cost
Amount: $2.58
Posted by: El cheapo Mark in Mt Airy, MD.Posted: October 22nd, 2014 05:10AM
Size: 500 gallonType: Above ground
I own my tank & Southern States charged me $2.58/gallon for my fill up of only 43 gallons
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All Propane Dealers are NOT crooks!
Amount: $1.89
Posted by: Eric Williams in Yellville, AR.Posted: August 19th, 2014 06:08PM
Size: 561 gallonsType: Propane
In January of 2004, I bought my new 1000 gallon propane tank from Anderson's Propane of Bergman, Arkansas. Delivered about 100 miles from Bergman, installed, with a regulator, for a total of $1,519.66. I did run the 1/2" copper fuel line from the tank to my house, myself. I had that line inn position before the tank was delivered). Call Anderson's at (870) 741-2894 - 1-800-789-5549
Anderson charged me $ .89 per gallon to fill my new 1000 gallon taqnk.
I have been a steady Anderson customer for ten years. I had that tank refilled on July 17, 2014, for $1.89 per gallon.
Anderson has a prepay which I use. This year the prepay price during the coming winter is $2.19.
I do not have any contract with Anderson's. When I call around to compare prices I am totally flabbergasted at the prices I am quoted.
One company even refused to quote me because I "have a reputation of shopping around".
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250lb propane tank refil
Amount: $390.00
Posted by: gporter in atlanta, GA.Posted: January 6th, 2014 04:01AM
Size: 250lbType: propane
paid for 100 gal.12-11 13 had 20per.left before refill 12-27-13 tank completly empty tank was leak tested 3 times.
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