California reigns, while 2024 propane gallon sales recede

Last year, we called it a three-peat. Dare we now talk dynasty?

California is No. 1 in retail propane sales for the fourth straight year, and Michigan has finished as the runner-up each time. The Golden State sold 532 million gallons in 2024, the latest year for available data, with Michigan pumping 450 million total gallons for retail customers.

“This sustained growth illustrates how propane remains a vital energy source for a broad range of applications across California, from residential uses to commercial and agricultural operations to fleet vehicles,” shared Colin Sueyres, president and CEO of the Western Propane Gas Association soon after the report dropped in September.

“As the energy landscape continues to evolve, sales in California demonstrate how propane is an integral part of our energy needs.”

This California-Michigan duel at the top is just one notable nugget from the Annual Retail Propane Sales Report, conducted by Frost & Sullivan on behalf of the Propane Education & Research Council (PERC). The report, from a web-based survey of U.S. propane retailers, shows odorized propane sales by state and end-use sector.

PERC funds the study each year as a critical component of its budgeting process. The council is required to rebate 20 percent of the industry’s assessment dollars back to the states, and that amount is determined by the percentage of the total odorized propane sales in each state.

Here’s more from the 35-page report.

Top 10: In addition to California and Michigan, the top 10 features:

• New York – 430 million gallons
• Texas – 428
• Minnesota – 426
• Illinois – 411
• North Carolina – 374
• Wisconsin – 373
• Iowa – 344
• Pennsylvania (which unseated Ohio at No. 10) – 340

Streaks: Even with California at No. 1, its overall gallon sales fell for the third straight year, after it sold 546 million in 2021. Other states sliding since 2021: Alabama, Florida, Hawaii, New Jersey, South Dakota and Vermont. Nebraska’s gallons have fallen each year since 2020. On the other hand, Maine’s gallons (186 million) are up nearly 25 percent since 2020.

Total sales: In 2024, U.S. retail sales of odorized propane fell for the second straight year, totaling 8.810 billion gallons – a 2.1 percent decline from the 8.995 billion sold in 2023 and a 10 percent drop from the 9.840 billion sold in 2022. The report cites “record-warm winter months” cutting into residential space heating as the primary factor in the 2024 downturn. In fact, 2024 was the warmest year on record for the contiguous United States, according to the National Oceanic and Atmospheric Administration. Still, total odorized propane sales weren’t far off the 10-year average of 9.0 billion gallons.

By region: The South and Northeast saw 5 percent and 4.6 percent increases in gallon sales, respectively, while the Midwest and West experienced 7.1 percent and 2.6 percent declines compared to 2023. Record-low grain drying demand owing to low precipitation played a key part in the Midwest, which still sold the most gallons (3.16 billion, or about 36 percent of total sales) in 2024.

End uses: As expected, retailers sold more than half (53 percent) of all gallons into the residential market, which has now faced back-to-back annual declines. The 4.69 billion residential gallons in 2024 is a stark contrast (nearly a 20 percent drop) to the 5.85 billion this market represented in 2019. The agricultural market lost gallon sales for the fifth straight year.

Market leaders: Michigan gained some redemption by continuing to control the residential market, with 317 million gallons in sales. California led the commercial market (153 million), and Texas topped the industrial (52 million), cylinder (14 million) and internal combustion (71 million) categories. Iowa once again led in the agricultural market with 92 million gallons in sales.

Renewable propane and blends: Sales in this newer category continue to tick upward – from 50 million gallons in 2022, to 102 million in 2023 to nearly 195 million in the latest data.

Visit propane.com/providers/annual-retail-sales-report.

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