Own or lease a propane tank?
Compare owning and leasing a residential propane tank: who maintains it, who can fill it, and what to check in the agreement.
Owning a tank usually gives you more freedom to switch suppliers and shop price, but you take on maintenance, inspection, and replacement. Leasing lowers upfront cost and puts upkeep on the supplier, but the agreement often ties your fuel purchases to that company.
What ownership changes
If you own the tank, other suppliers may be willing to fill it, subject to their own safety checks and policies. You are responsible for condition, placement, regulator and valve upkeep, and eventual replacement.
What leasing changes
A leased tank belongs to the supplier. Many agreements limit who may fill it and may include rental fees, minimum purchases, or removal charges. None of that is automatically bad, but all of it affects total cost.
- Is there an annual rental fee, and can it change?
- Is there a minimum gallons-per-year requirement?
- What does early termination or tank removal cost?
- Who pays for repairs and inspections?
Switching suppliers
Switching can involve a tank removal or exchange, a new safety check, and gas left in the tank. Ask both the old and new supplier how it is handled before you cancel anything.
Hypothetical: a lease fee against a price difference
Compare yearly cost for a household using a hypothetical 500 gallons.
| Leased tank: $2.90 per gallon + $100 annual fee | $1,550 |
|---|---|
| Owned tank, other supplier: $3.05 per gallon, no fee | $1,525 |
| Difference | $25 in favor of owned in this example |
All dollar figures in this worked example are hypothetical round numbers chosen to show the arithmetic. They are not EIA data, not a quote, and not a prediction. Your gallons, fees, and prices will differ.
Checklist
- Get the tank agreement in writing and read the fee and exit sections.
- Ask what the tank is rated and when it was last inspected.
- Ask for per-gallon price with and without the lease.
- Ask what it costs to remove or buy out a leased tank.
- Do not sign until you have compared at least two offers.
Official sources
- Colorado Oil and Public Safety: Liquefied Petroleum Gas program. State program page for liquefied petroleum gas (LPG).
- Propane Education & Research Council: propane safety in your home. Industry safety guidance for homeowners.
- EIA Heating Oil and Propane Update. Survey schedule and methodology for the October-March residential price survey.
Related guides
Frequently asked questions
- Can any supplier fill my tank?
- Not always. Owned tanks are more flexible, but each supplier sets its own safety and policy requirements.
- Who is responsible for safety?
- It depends on ownership and the agreement. Ask for responsibilities in writing and see the safety guide.
- Is leasing a bad deal?
- Not inherently. Compare total cost and flexibility, not only the monthly or annual fee.
Content reviewed October 5, 2026. Dates of data observations are separate and shown at the source.
Location picks reflect Colorado Propane Prices’ editorial judgment, not independent testing. Confirm every supplier’s coverage and delivered price directly. General information only; not a quote, not professional advice, and no price is guaranteed.