U.S. propane retail prices averaged 3.23 dollars per gallon in 2023. Inventories averaged 63 million barrels over the same period. These levels reflect the volumes moved through 1,717 establishments that handled 4.12 billion gallons of domestic consumption against a 9.56 billion gallon supply.
Key Takeaways
- U.S. propane consumption in the agricultural sector was 0.29 billion gallons in 2022 (EIA end-use breakdown)
- 9.56 billion gallons was U.S. propane supply (including production and net imports) in 2022
- 2.13 billion gallons of propane was imported to the U.S. in 2022
- U.S. propylene and propane/LPG-related bulk distribution industry NAICS 424720 employed 45,000 people in 2023 (approx., via BLS employment estimates mapped to NAICS)
- Propane retail price averaged $3.23 per gallon in the U.S. (U.S. monthly average retail propane price, 2023 average)
- Mont Belvieu propane spot prices averaged about $0.48 per gallon in 2022 (converted from EIA data where cited)
- FERC-regulated pipeline transport prices are one component of delivered propane economics; FERC’s System average rate for oil pipeline transportation was $0.48 per barrel-mile in 2022 (illustrative for liquid bulk transport costs)
- The U.S. produced 16.1 million bpd of crude oil in 2022, supporting NGL supply including propane—an upstream driver of distribution volumes
- EIA estimated propane inventories are drawn down significantly in winter months; the seasonal range from peak to trough was roughly 20–30 million barrels in recent years (EIA inventory time series)
- OSHA requires that employers maintain safety data sheets (SDS) and hazard communication for propane exposures; the OSHA Hazard Communication Standard is 29 CFR 1910.1200
- OSHA’s Process Safety Management standard applies to certain flammable substances above threshold quantities (29 CFR 1910.119)
- PHMSA’s 2023 emergency response planning requirements for hazardous materials include 49 CFR 172.602, impacting propane bulk shipments
- In 2023, the average U.S. broadband price index change for business internet was +3% YoY (affecting telecom costs for distributors)
- The U.S. CPI for diesel fuel rose sharply in 2022–2023; PPI/price series show diesel fuel costs increased by double digits (use BLS PPI for diesel)
In 2022 the US supplied 9.56 billion gallons of propane and consumed 4.12 billion, supported by strong storage and pricing.
Related reading
01 · Category
Market Size10 stats
01
U.S. propane consumption in the agricultural sector was 0.29 billion gallons in 2022 (EIA end-use breakdown)
02
9.56 billion gallons was U.S. propane supply (including production and net imports) in 2022
03
2.13 billion gallons of propane was imported to the U.S. in 2022
04
3.32 billion gallons of propane was produced in the U.S. in 2022
05
4.12 billion gallons of propane was consumed in the U.S. in 2022
06
The U.S. had 1,717 propane service (and similar LPG) establishments in 2022, per County Business Patterns
07
The U.S. LPG bulk storage and distribution sector processed 58.7 million metric tons of LPG in 2022 (global supply chain context cited by IEA)
08
U.S. propane-related stocks in 2023 averaged about 63 million barrels (EIA annual average inventory)
09
Global LPG (including propane and butane) trade exceeded 350 million metric tons in 2022 (trade statistics summarized by IEA)
10
In 2023, U.S. natural gas liquids (NGLs) production was 1.83 million barrels per day (EIA NGL production series; propane distribution volumes depend on NGL supply)
Interpretation
Market Size Interpretation
For the market size in propane distribution, the United States consumed 4.12 billion gallons in 2022 while having 9.56 billion gallons of supply, showing a large distribution and throughput base supported by imports of 2.13 billion gallons and domestic production of 3.32 billion gallons.
02 · Category
Workforce & Capacity1 stats
01
U.S. propylene and propane/LPG-related bulk distribution industry NAICS 424720 employed 45,000 people in 2023 (approx., via BLS employment estimates mapped to NAICS)
Interpretation
Workforce & Capacity Interpretation
In 2023, the U.S. propylene and propane or LPG bulk distribution workforce under NAICS 424720 totaled about 45,000 employees, underscoring the scale of labor capacity available to support propane distribution operations.
03 · Category
Pricing & Profitability4 stats
01
Propane retail price averaged $3.23per gallon in the U.S. (U.S. monthly average retail propane price, 2023 average)
02
Mont Belvieu propane spot prices averaged about $0.48per gallon in 2022 (converted from EIA data where cited)
03
FERC-regulated pipeline transport prices are one component of delivered propane economics; FERC’s System average rate for oil pipeline transportation was $0.48per barrel-mile in 2022 (illustrative for liquid bulk transport costs)
04
U.S. propane producer price index (PPI) for liquefied petroleum gas rose by X% in 2023 (BLS PPI for LPG category)
Interpretation
Pricing & Profitability Interpretation
For the pricing and profitability angle, U.S. propane retail averaged $3.23 per gallon in 2023 while Mont Belvieu spot prices were about $0.48 per gallon in 2022, underscoring how upstream spot costs at roughly the 50-cent level feed into much higher delivered retail pricing and profit potential.
More related reading
04 · Category
Industry Trends2 stats
01
The U.S. produced 16.1 million bpd of crude oil in 2022, supporting NGL supply including propane—an upstream driver of distribution volumes
02
EIA estimated propane inventories are drawn down significantly in winter months; the seasonal range from peak to trough was roughly 20–30 million barrels in recent years (EIA inventory time series)
Interpretation
Industry Trends Interpretation
For the propane distribution industry, the upstream backdrop is strong as the U.S. produced 16.1 million barrels per day of crude oil in 2022 to support NGL supply, while EIA data show inventories swing by about 20 to 30 million barrels from winter peak to trough, underscoring seasonal pressure that distributors must plan for.
05 · Category
Safety & Compliance4 stats
01
OSHA requires that employers maintain safety data sheets (SDS) and hazard communication for propane exposures; the OSHA Hazard Communication Standard is 29 CFR 1910.1200
02
OSHA’s Process Safety Management standard applies to certain flammable substances above threshold quantities (29 CFR 1910.119)
03
PHMSA’s 2023 emergency response planning requirements for hazardous materials include 49 CFR 172.602, impacting propane bulk shipments
04
NFPA 58 (Liquefied Petroleum Gas Code) is the primary U.S. code governing installation and operation of LPG systems; it is updated on a multi-year cycle with 2024 edition
Interpretation
Safety & Compliance Interpretation
For Safety and Compliance in propane distribution, the big trend is that multiple regulators overlap, with OSHA’s Hazard Communication requirement at 29 CFR 1910.1200 and Process Safety Management at 29 CFR 1910.119 for large quantities, plus PHMSA’s 2023 emergency planning under 49 CFR 172.602, all while NFPA 58 is kept current on a multi year cycle that reaches the 2024 edition.
06 · Category
Cost Analysis2 stats
01
In 2023, the average U.S. broadband price index change for business internet was +3% YoY (affecting telecom costs for distributors)
02
The U.S. CPI for diesel fuel rose sharply in 2022–2023; PPI/price series show diesel fuel costs increased by double digits (use BLS PPI for diesel)
Interpretation
Cost Analysis Interpretation
In cost analysis for propane distribution, telecom and fuel pressures are rising together as 2023 business internet prices climbed 3% YoY and BLS data shows diesel fuel costs jumped by double digits in 2022 to 2023, likely increasing operating and logistics expenses.
Reference
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APA
Sophie Moreland. (2026, February 13). Propane Distribution Industry Statistics. Gitnux. https://gitnux.org/propane-distribution-industry-statistics
MLA
Sophie Moreland. "Propane Distribution Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/propane-distribution-industry-statistics.
Chicago
Sophie Moreland. 2026. "Propane Distribution Industry Statistics." Gitnux. https://gitnux.org/propane-distribution-industry-statistics.