AmeriGas is the largest propane distributor in the United States, but it operates differently depending on where you live
AmeriGas Propane is a subsidiary of Berkshire Hathaway that delivers propane to homes and businesses across the country. The company operates through two main divisions: AmeriGas Propane, which serves residential and commercial customers, and Petro, which operates primarily in the Northeast. If you see an AmeriGas truck in your area, the company likely serves your region — but the way you interact with them, what you pay, and what services come standard varies significantly by location.
AmeriGas does not own the propane itself in most cases. Instead, the company purchases propane from suppliers, stores it in local distribution centers, and delivers it to customer tanks. Your bill covers the cost of the propane, the delivery fee, and any service charges. Unlike some smaller local propane companies, AmeriGas operates on a standardized model, which means pricing structures and contract terms tend to be more uniform, though they still differ by region and by whether you own or rent your tank.
The company serves roughly 1.5 million customers across all 50 states. That scale means AmeriGas has the infrastructure to reach rural areas that smaller providers cannot, but it also means customer service operates through regional call centers rather than a local office you can walk into.
Key Takeaways
- AmeriGas charges for propane by the gallon plus a delivery fee, and prices vary by region and by whether you own or lease your tank from them.
- The company offers both automatic delivery (where they refill your tank on a schedule) and on-demand delivery (where you call when you need propane).
- AmeriGas tanks come in standard sizes — typically 120, 250, 500, or 1,000 gallons for residential customers — and the size you choose affects how often you need delivery.
- If you own your tank outright, you can switch propane companies without penalty, but if AmeriGas owns the tank, you may face early termination fees if you leave before your contract ends.
- AmeriGas offers budget billing plans that spread your annual propane costs evenly across 12 months, which can help with cash flow planning.
How AmeriGas pricing works and what affects your bill
Your AmeriGas bill has three main components: the cost of propane per gallon, a delivery fee, and any service charges. The per-gallon price fluctuates based on wholesale propane costs, which change weekly. AmeriGas publishes regional pricing, but the exact rate you pay depends on your location, your account type (residential or commercial), and whether you have a contract or pay month-to-month.
Delivery fees typically range from $15 to $25 per delivery, though this varies by region and by how far you live from the distribution center. Some customers on automatic delivery schedules pay a lower per-delivery fee than those who call for on-demand fills. If you own your tank, you may also pay a tank maintenance or inspection fee every few years — usually $50 to $150 — to may support the tank meets safety standards.
Budget billing spreads your annual propane costs across 12 equal monthly payments. This means you pay the same amount each month regardless of how much propane you actually use. At the end of the year, AmeriGas reconciles your account: if you used less than you paid for, you get a credit; if you used more, you owe the difference. This plan works best for customers who want predictable monthly expenses, but it does not reduce your total annual cost.
Automatic delivery versus on-demand service
AmeriGas offers two main ways to receive propane: automatic delivery and on-demand delivery. With automatic delivery, AmeriGas monitors your tank level (either through a wireless gauge or by estimating based on your historical usage) and delivers propane on a set schedule — typically every 4 to 12 weeks, depending on your consumption. You do not have to call or remember to order; the company handles the scheduling.
On-demand delivery means you call AmeriGas when your tank is low and request a fill. This gives you more control over when you receive propane, but it requires you to monitor your tank level yourself. If you run out of propane unexpectedly, you may face a service call fee to relight your appliances after the tank is refilled. On-demand customers typically pay a higher per-gallon rate than automatic delivery customers, because the company has less predictability in its delivery schedule.
Most residential customers choose automatic delivery because it eliminates the risk of running out and usually offers a lower per-gallon price. Automatic delivery works well if your usage is fairly consistent year to year. If your propane needs vary significantly — for example, if you use propane only seasonally — on-demand may be more cost-effective, even with the higher per-gallon rate.
Tank ownership and what it means for your costs and flexibility
When you start service with AmeriGas, you have two options: own your tank or lease it from the company. This decision affects your upfront costs, your monthly bills, and your ability to switch providers later.
If you own your tank, you pay for it outright — typically $300 to $600 for a standard residential tank, depending on size and your region. You are responsible for maintenance, inspections, and eventual replacement. You can switch to any other propane company at any time without penalty. If you own your tank, you also own the propane inside it, so if you leave AmeriGas, you can ask them to pump out the remaining propane and credit your account, or you can leave it for the next customer.
If you lease your tank from AmeriGas, you pay a monthly lease fee — typically $8 to $15 per month — instead of buying the tank upfront. AmeriGas handles all maintenance and inspections. However, your contract usually requires you to stay with AmeriGas for a set period, often 5 to 10 years. If you leave early, you may owe an early termination fee, which can range from $200 to $500 or more, depending on your contract terms. The lease fee adds up over time: a $10 monthly lease costs $120 per year, so after five years you have paid $600 — more than the cost of buying the tank outright.
Owning your tank usually makes financial sense if you plan to stay in your home for several years or if you think you might switch propane companies. Leasing makes sense if you want to avoid the upfront cost and prefer not to worry about tank maintenance, or if you are renting and do not want to invest in equipment you will leave behind.
AmeriGas contracts and what to watch for
AmeriGas offers both contract and month-to-month service. A contract locks in your per-gallon propane price for a set period — typically one to three years — which protects you if propane prices rise. However, if prices fall significantly, you are stuck paying the higher contract rate. Month-to-month service means your per-gallon price adjusts with the market, so you benefit when prices drop, but you also pay more when prices spike.
Read your contract carefully before signing. Look for the contract length, the per-gallon price, any price adjustment clauses, early termination fees, and what happens when the contract expires. Some contracts automatically renew unless you notify AmeriGas in writing before the expiration date — missing that important date can lock you in for another year. If you lease your tank, the lease terms are usually bundled with the propane contract, so leaving early means paying both the propane early termination fee and potentially a tank lease fee.
AmeriGas publishes its regional pricing online, so you can compare rates before you sign up. Call the company directly or visit their website to get a quote for your area and tank size. Ask whether the quote includes all fees — delivery, service, and any tank lease — so you understand your total monthly cost.
How to set up service or switch to AmeriGas
To start service with AmeriGas, contact the company by phone or through their website. You will need to provide your address, the size of your tank (or let them know you need a new tank installed), and your preferred delivery method. AmeriGas will schedule a delivery date and, if you do not already have a tank, arrange for installation.
If you are switching from another propane company, AmeriGas can coordinate the transition. The company will arrange to pick up your old tank from the previous provider and install a new one (or transfer your existing tank if you own it). This process typically takes one to two weeks. During the transition, make sure you have enough propane to last until the new tank is installed — running out of propane during a switch can leave you without heat or hot water.
If you own your current tank and want to keep using it with AmeriGas, bring documentation of ownership to your first appointment. AmeriGas will inspect the tank to may support it meets safety standards before connecting it to their system. If the tank fails inspection, you will need to replace it or have it recertified, which can add $100 to $300 to your setup cost.
Common issues and how to resolve them
One frequent complaint is unexpected price increases. Propane prices do fluctuate with the market, but if you are on a contract, your per-gallon rate should not change until the contract renews. If you see a sudden increase mid-contract, contact AmeriGas to verify the charge. Sometimes billing errors occur, or a service fee may have been added without clear explanation on your bill.
Another common issue is delivery delays. AmeriGas operates on a regional delivery schedule, and during cold snaps or high-demand periods, deliveries can be delayed by several days. If you are running low on propane and need an urgent delivery, call the company as soon as possible and ask about expedited service — there may be an additional fee, but it can prevent you from running out.
If you have a problem with your bill or your service, start by calling AmeriGas customer service at the number on your bill. Have your account number and recent bill ready. If the issue is not resolved to your satisfaction, you can file a complaint with your state's Public Utilities Commission or attorney general's office, depending on how your state regulates propane service.
Frequently Asked Questions
Can I use my own tank with AmeriGas instead of leasing theirs?
Yes, if you own your tank outright and it passes AmeriGas's safety inspection. Bring proof of ownership and have the tank inspected at your first appointment. If you own the tank, you avoid monthly lease fees, but you are responsible for maintenance and eventual replacement.
What happens if I run out of propane in the middle of winter?
If your tank empties completely, your propane appliances will stop working. AmeriGas can deliver propane, but you may need to pay a service call fee to have a technician relight your pilot lights and check your system. This is why automatic delivery is recommended — it prevents you from running out unexpectedly.
How do I know if AmeriGas serves my area?
Visit AmeriGas's website and enter your zip code, or call their customer service line. The company serves all 50 states, but specific service areas vary by region. If AmeriGas does not serve your exact location, they can tell you which propane provider does.
Can I cancel my AmeriGas contract early?
You can cancel, but if you are under contract, you may owe an early termination fee — typically $200 to $500, depending on your contract terms. If you lease your tank, you may also owe a tank lease termination fee. Review your contract to see the exact penalty before you cancel.
Does AmeriGas offer any discounts or loyalty programs?
AmeriGas occasionally offers promotional rates for new customers, and some regions have discounts for seniors or low-income households. Ask about current promotions when you call for a quote. The company also offers budget billing, which spreads costs evenly across 12 months but does not reduce your total annual bill.