Propane Fuels America: New Jersey

March 26, 2021 By    

LP Gas’ yearlong Propane Fuels America series takes a deep dive into how each state benefits from the propane industry. Here’s our report on New Jersey.

NJPERF promotes propane school buses to New Jersey school boards at a virtual conference held in 2020. Photo courtesy of Propane Education & Research Council

NJPERF promotes propane school buses to New Jersey school boards at a virtual conference held in 2020. Photos courtesy of Propane Education & Research Council

Total odorized propane demand (2019): 81 million gallons

U.S. rank for gallons sold: T-39

Gallon sales trend: New Jersey saw an uptick in gallon sales from 75 million in 2017 to 82 million in 2018. That year-over-year growth trend flattened in 2019, with sales of 81 million gallons.

Census region/division gallons: Northeast: 1.69 billion/Middle Atlantic: 915 million

Propane autogas school buses/districts and contractors: 85/10

Market pointers 

⦁ Bordered by Philadelphia and New York City, New Jersey is densely populated with relatively high per capita income levels. However, the state’s demand for energy has declined in recent decades, especially in the transportation and commercial sectors.

⦁ The residential market accounted for 58 percent of retail propane gallon sales in 2019, followed by the internal combustion (16 percent) and commercial markets (15 percent). Most residential demand for propane comes from space heating, but the share of demand for cooking, water heating and other appliances is higher than the national average.

⦁ While natural gas expansion posed a threat to New Jersey’s propane market historically, attention has shifted to renewable energy. In 2019, the state released its Energy Master Plan, which outlines how it will meet 100 percent of its energy needs with “clean energy” by 2050.

⦁ The New Jersey Propane Gas Association (NJPGA) is coordinating with the National Propane Gas Association to respond to the challenging regulatory and legislative environment, according to Katina Pearl-Blando, managing director of NJPGA. Propane industry representatives have attended public hearings for the Energy Master Plan.

⦁ Suburban Propane got its start in New Jersey in 1928. Today, the company serves customers in 41 states and is the third-largest retail propane marketer by gallon sales, according to LP Gas’ 2021 Top Propane Retailer rankings.

Fast facts

State association affiliation: New Jersey Propane Gas Association (NJPGA)/

Programs: NJPGA administers the New Jersey Propane Education & Research Foundation (NJPERF) program to ensure the safe installation of propane water heaters by allowing rebates of $200 per propane water heater that is installed in new construction or replaces a non-propane water heater. In coordination with NJPGA, NJPERF also provides Certified Employee Training Program classes, promotes the water heater rebate program through a consumer campaign and, from 2017-20, has promoted the adoption of propane school buses through participation in the New Jersey School Boards Association’s annual Workshop conference.

Before COVID-19: The propane industry in New Jersey had contributed $427 million to the 2018 state economy. It’s too early to assess COVID-19’s impact on the state’s gross domestic product.

“When the governor’s office came out with the Energy Master Plan, we organized an effort to have various board members and representatives of the propane industry go and make sure they understood what the propane industry means for the New Jersey economy, what it means for the mom and pops for whom this is their livelihood, but also what it means for the residents of New Jersey to have choice in their fuel supply.” – Katina Pearl-Blando, New Jersey Propane Gas Association

What’s the weather?

Average temperature (2020): 55.5 degrees F

Annual heating degree-days five-year average (2015-19): 5,114
U.S. average: 4,090

Sources: Propane Education & Research Council’s U.S. National and State Propane Market Profiles; Annual Retail Propane Sales Report;; New Jersey Propane Gas Association; U.S. Energy Information Administration’s State Energy Profiles

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