How to Switch Propane Suppliers (It's Easier Than They Want You to Think)

You can switch propane suppliers. Most companies would prefer you didn’t know how, or would prefer you believe it’s complicated enough that it isn’t worth the effort.

It’s not complicated. I’ve done it, and the process took about two weeks from first call to first delivery from the new company.

Here’s exactly how it works.

Step 1: Check Whether You Own or Rent Your Tank

This is the most important question, and it determines everything else.

If you own the tank: You can switch suppliers immediately. Call a new company, schedule a delivery, done. The tank is yours to fill with whoever you want.

If you rent the tank from your current supplier: You’ll need to either return the tank and have the new supplier install theirs, or buy out your existing rental agreement. Most residential propane tanks are rented, not owned — check your original contract or call your supplier to ask.

If you’re renting, don’t let that stop you. The new supplier will typically handle the swap: they coordinate pickup of the old company’s tank and delivery of their own. You may pay a small fee, but it’s usually far less than the annual savings from switching.

Step 2: Check Your Contract for Lock-In Terms

Some suppliers — especially after offering a “price protection” or “budget billing” plan — lock you in for 1–3 years. Read your contract before you start making calls.

If you’re under contract, you may owe an early termination fee, often in the range of $150–$300. Calculate whether the savings justify it. If you’re paying $0.30/gallon more than market rate and you use 1,000 gallons a year, you’re overpaying $300/year — the break-even is immediate.

If you’re not sure where you stand: just call your current supplier and ask. “Am I in a contract and what’s my cancellation notice period?” They’re required to tell you.

Step 3: Get At Least Three Quotes

Call local competitors. Ask for their current price per gallon for a will-call delivery (meaning you call when you need it, rather than automatic delivery). Also ask:

• Is there an annual tank rental fee?
• Are there minimum delivery requirements?
• What’s the delivery fee?
• Do they offer any price protection programs?

Compare total cost of ownership, not just the per-gallon price. A supplier charging $2.80/gallon with a $100 annual tank fee might cost more than one at $2.95 with no tank fee, depending on your usage.

Step 4: Tell Your Current Supplier You’re Leaving

This step is often where people save money without even switching. When you call to cancel, you’ll frequently get transferred to a retention team that has authority to lower your price.

I’ve heard of people getting rate reductions of $0.20–$0.40/gallon just by saying “I’ve gotten a better quote and I’m planning to switch.” If they match or beat the competitor, great. If not, proceed.

Step 5: Coordinate the Switch

Once you’ve chosen a new supplier:

1. Schedule your final delivery from the old company if your tank is running low (or don’t — the new company will deal with whatever’s in the tank).
2. Schedule the tank swap with both companies. The new supplier will call the old one to coordinate pickup and delivery in most cases.
3. Be home for the swap day. Someone needs to be there when the old tank is removed and the new one is installed and inspected.
4. Confirm your account is closed with the old supplier and request a confirmation in writing.

How Much Can You Save by Switching?

Propane prices vary significantly by region and by how you buy. But supplier markup over the wholesale price can range from $0.20 to over $1.00/gallon depending on how long you’ve been with a company and how little you’ve pushed back.

If you use 800 gallons a year and switch from a supplier charging $3.20/gallon to one charging $2.75/gallon, that’s $360/year. Over five years without switching, you’ve left $1,800 on the table.

The average propane homeowner who hasn’t compared prices in three or more years is almost certainly overpaying.

Common Concerns (And Why They’re Not a Big Deal)

“Won’t there be a gap in service?” Rarely. Suppliers coordinate these transitions regularly. As long as you keep some propane in the tank and don’t schedule the swap during a cold snap, you’re fine.

“What about my existing equipment — will a different company’s gas work?” Propane is propane. Your furnace, water heater, range, and generator don’t care who delivers it.

“What if my new supplier raises prices too?” They might. That’s why you shouldn’t sign long-term contracts without price protection language, and why you should compare prices every couple of years. Set a calendar reminder.

“The old company has been here for 20 years.” Loyalty is a fine thing when it’s earned. If they’ve been treating you fairly on price, that’s great — stay. If they’ve been raising prices 8% a year while the market held flat, they don’t deserve your loyalty.

When to Make the Switch

The best time to shop is spring or early summer, when demand is low and suppliers are more motivated to offer competitive pricing. Don’t wait until October when everyone needs propane and leverage is entirely on their side.

If you’re running low in winter and need an emergency fill, that’s not the moment to shop — you’re in a weak negotiating position. Plan ahead and you’ll have far more options.