Propane Usage Facts

  • Propane is one of the least efficient energy sources, providing just 91,547 BTU’s per gallon of propane. (http://www.propane101.com)
  • The average furnace is 200,000 BTU’s. This means that the average furnace will burn 2.2 gallons of propane every hour that it is running at full blast. (http://www.propane101.com/abnormalusageandleaks.htm)
  • If a consumer were to pay $2.28/ gallon, and their furnace was 200,000 BTU’s, it would cost $5.02/Hour to heat their home.
  • According to the Michigan Department of Labor and Economic Growth, the current price of propane is 2.28/ gallon (http://www.dleg.state.mi.us/mpsc/reports/shopp/), and is steadily increasing.
  • This price is only an average and can fluctuate based on several factors, including ownership of LP tank vs. leasing LP tank. On average, a person who leases their LP tank can expect to pay $2.65/gallon as they are often limited to the gas company they are leasing from. A person who owns their own tank can expect more competitive pricing. (http://www.propane-prices.com/faq.html)
  • Propane is the only gas that is not regulated by the government; therefore, the supplier can increase the price to any amount they see fit.
  • The average Michigan household uses between 1000 and 1200 gallons of propane per year.
  • What does this mean for a consumer: average cost to heat a home with propane each year is $2,280.00 - $3,180.00. If a consumer were to use heating oil, the average cost per year would be $2,990.00 - $3588.00.
  • Pool Heater Gas Usage - If you add the propane consumption of a pool heater, the numbers really start to climb. Pool heaters are high capacity appliances that can consume more than 4.5 gallons of propane per hour (425,000 BTU/hr ÷ 91,547 = 4.64 gal/hr). If it takes 4 hours to heat the pool on a cool day, the pool heater may use 18.5 gallons. If the pool heater (425,000BTU/hr) is used for one hour per day at 75% capacity, (425,000BTU/hr ÷ 91,547 = 4.64 gal/hr • 4.64 x .75 = 3.48 gallons). As you can see, pool heaters use a lot of gas and playing with these numbers, you can get an idea of normal off peak propane usage rates. (http://www.propane101.com)