Propane Tank Cost: Average Prices & Cost Factors

A propane tank is a one-time equipment decision that comes with a long list of ongoing costs. Before comparing prices, it helps to separate three questions: what the tank itself costs, what it takes to set it up, and what you pay each time it is filled.

Most households end up choosing between owning a tank and leasing one from a propane supplier. That choice affects the up-front bill, who handles maintenance, and where you can buy fuel later.

Burying a tank keeps the yard clear and hides the tank from view, but it takes excavation and more labor. The published figure below is for a 500 gallon tank.

Soil conditions, drainage, and the depth required by local rules can change the bill. An installer will usually check for utility lines and groundwater before quoting.

If you own the tank, you can buy propane from any supplier that will fill it. Tank-only prices are separate from installation, so add the setup items in the next section when budgeting.

A refurbished tank costs less than a new one, but ask for its certification and inspection history. A tank that is out of date for recertification cannot be filled until it passes.

Leasing keeps the up-front cost low. The supplier owns the tank, usually installs it, and handles repairs. The tradeoff is that you generally buy fuel only from that supplier.

Rental fees are often small compared with fuel spending, but the cost of leasing may show up in the per-gallon price. Compare the supplier's gallon price against independent dealers before you commit, and ask whether the lease allows a competitor to fill the tank.

The tank is one line of the bill. A gas line connects the tank to the house, a pad or footing supports aboveground tanks, and many areas require a permit and inspection.

Distance matters most for the gas line. The farther the tank sits from the house, the more pipe, trenching, and labor it takes. Local codes also set minimum distances from buildings, property lines, and windows, which can limit where the tank goes.

• Tank size. Larger tanks cost more to buy, lease, and install.
• Aboveground versus underground. Burying adds excavation and labor.
• Distance to the house. Longer gas line runs raise the price.
• Site prep. A level pad, gravel base, or tree removal adds cost.
• Permits and inspections. Fees and rules vary by city and county.
• New versus refurbished. Used tanks cost less up front but need documentation.
• Supplier and region. Delivery distance and local competition affect pricing.

The tank is a one-time purchase, but fuel is a recurring expense. Propane is sold by the gallon, and the price changes through the year as demand and supply shift. A nationwide figure is published weekly.

At that national average of $2.60/gal, a refill depends on the tank size and how full it is. Suppliers generally fill tanks only part of the way to leave room for expansion, so a 500 gallon tank holds about 400 usable gallons.

Refill costs swing widely with the propane price. Locking in a price or setting up a delivery plan with your supplier may smooth out winter spikes. Check what your supplier charges for delivery, minimum fills, and hazmat or fuel surcharges.

Guides report different totals because they define the job differently. Some include the tank, gas line, and pad, while others quote only the tank or only the labor.

Region, tank size, and whether a source counts leasing or purchase prices may explain the gaps. Treat each figure as a range, and ask for a written quote that lists tank, line, pad, permit, and first fill separately.

Buying tends to suit households that plan to stay put, use a lot of propane, and want to shop fuel prices. Leasing fits owners who want a low entry cost and do not mind buying from one supplier.

• Buy if you want freedom to switch suppliers and expect heavy use.
• Lease if you want the lowest up-front bill and supplier-handled upkeep.
• Either way, get the terms in writing, including who owns the tank if you move.

Propane work should go to a licensed installer. The tank, regulator, and gas line must meet local code, and leaks are a fire and safety risk. Ask for proof of licensing and request the permit and inspection paperwork.