Ferrellgas (and Blue Rhino) Propane Price Per Gallon
Ferrellgas operates both a major bulk propane delivery business and Blue Rhino, the largest US cylinder exchange brand. This page covers per-gallon pricing across both channels, the 15lb cylinder fill question, and how Ferrellgas compares to other majors.
Company snapshot
Ferrellgas Partners (until 2021 a publicly traded MLP, since the 2021 restructuring a privately held company) is one of the largest US retail propane marketers, with approximately 800 retail distribution locations across 50 states. The company serves approximately 700,000 customers across residential, commercial, agricultural, and industrial segments. Ferrellgas is headquartered in Overland Park, Kansas.
Ferrellgas also owns Blue Rhino, which is the largest US cylinder exchange brand. Blue Rhino operates cylinder displays at more than 60,000 retail locations including Walmart, Lowe's, Home Depot, Kroger, 7-Eleven, and many convenience and grocery chains. The Blue Rhino business operates separately from the bulk delivery business but shares supply infrastructure: cylinders are refilled at Ferrellgas/Blue Rhino refurbishing plants and distributed to retail through the same logistics network.
Residential bulk delivery pricing
Ferrellgas residential bulk delivery pricing is not publicly posted. The company quotes per-gallon prices at the customer level based on region, contract type, tank ownership, and annual consumption tier. Industry pricing data suggests Ferrellgas residential will-call prices typically track within 5 to 15% of the EIA regional average, similar to AmeriGas and Suburban Propane.
Ferrellgas offers the standard contract structures.
- Will-call delivery: Customer-initiated fill, priced on the day of delivery.
- Automatic delivery: Ferrellgas monitors tank levels via heating-degree-day estimation and delivers on schedule. Typical 3 to 6 cent per gallon discount versus will-call.
- Ferrellgas SmartTank: Wireless tank monitoring service that lets Ferrellgas optimise delivery timing. Available in most markets, typically bundled with automatic delivery.
- Pre-buy and price-protection plans: Standard pre-buy, cap, and fixed-price options. Specific terms vary by state and by year. Pre-buy enrollment typically opens in June or July.
Blue Rhino cylinder exchange
Blue Rhino operates the largest US cylinder exchange network. The Blue Rhino 20-pound steel cylinders are filled to 15 pounds (3.6 gallons) of propane, consistent with the industry exchange-network practice since the 2008 change from 20lb to 15lb fills. The change was disclosed at the time but generated some customer confusion because the cylinders are still physically rated for 20lb capacity.
Blue Rhino exchange pricing varies by retailer and region. Typical 2026 pricing runs $21 to $28per exchange at the major retail partners. Walmart and Lowe's pricing tends to sit at the lower end of the band; gas stations and convenience stores at the higher end. At the typical $25 price for a 15lb-fill cylinder, the per-gallon equivalent works out to roughly $6.94 per gallon, well above the residential bulk price of $2.674.
Why the cylinder exchange premium exists
The per-gallon premium for Blue Rhino (and equivalent AmeriGas Cylinder Exchange) over residential bulk covers several real costs.
- Cylinder cycling: Each cylinder cycles through Blue Rhino's refurbishing plants where it is inspected, requalified if needed, cleaned, valve-checked, refilled on a calibrated scale, and painted or restickered before redistribution. The cycling cost spreads across the 3.6 gallons in the cylinder.
- Retail distribution: Blue Rhino delivers to 60,000+ retail locations on a regular schedule. The per-cylinder logistics cost is much higher than a single 500-gallon residential bulk fill.
- Retail margin: The retailers (Walmart, Lowe's, gas stations) take a margin on the cylinder sale, typically 25 to 50% depending on the partner.
- Cylinder ownership and amortisation: Blue Rhino owns the cylinders, refurbishes them every 12 years per DOT requalification, and replaces them when damaged. Cylinder fleet maintenance is non- trivial at the 60-million-cylinder scale Blue Rhino operates.
- Convenience pricing: The exchange model is fast (drop empty, grab full, two-minute transaction). The pricing reflects what customers will pay for the convenience, not just the cost basis.
The refill alternative
Customers wanting to capture better per-gallon economics on a 20lb tank can refill instead of exchange. The refill model fills the cylinder to the full 20lb (4.7 gallons) and the customer pays for actual gallons dispensed. Per-gallon refill pricing typically runs $3.19 to $5.11 per gallon equivalent at U-Haul, Costco, Ace Hardware, Tractor Supply, or independent propane dealers. The refill saves $5 to $10 per cylinder versus exchange, plus delivers the full 4.7 gallons instead of 3.6 gallons.
The refill catch: the cylinder must be in date for DOT requalification (every 12 years from manufacture date, stamped on the cylinder collar). Cylinders past requalification will be refused at refill stations. Blue Rhino exchange does not have this problem because the exchange operator handles requalification centrally; if you bring an out-of-date cylinder to exchange, Blue Rhino takes it out of service and gives you a current one. Some customers therefore exchange every 12+ years rather than refill, accepting the per-gallon premium for the requalification convenience.
Ferrellgas commercial and agricultural pricing
Ferrellgas commercial pricing follows the volume-tier structure described on our commercial vs residential page. Ferrellgas has a particularly strong agricultural and rural commercial footprint reflecting its Kansas headquarters and Midwest history. Agricultural pricing (crop drying, livestock barn heating, irrigation engine fuel) typically lands 25 to 40% below the regional residential price, with the discount widening for larger volumes.
Ferrellgas also has a meaningful presence in the autogas fleet market, supplying school district and municipal fleets in regions where Ferrellgas has the infrastructure. See the autogas page for fleet pricing band.
How Ferrellgas compares to AmeriGas and Suburban
The three majors operate with similar business models and generally similar pricing bands. Ferrellgas's differentiators are the Blue Rhino cylinder exchange business (no equivalent at Suburban, though AmeriGas operates AmeriGas Cylinder Exchange in competition with Blue Rhino) and the strong rural and agricultural footprint. For a residential bulk delivery customer in a market where all three majors operate, pricing typically clusters within a few cents per gallon and the choice comes down to customer service reputation, local dealer quality, and incumbent relationship.
Related
- AmeriGas propane price per gallon
- Suburban Propane price per gallon
- Costco propane refill per gallon
- Camping propane price (1lb and 20lb cylinders)
- Wholesale vs retail spread
FAQ
Is Blue Rhino actually 15 pounds instead of 20?
Yes, since 2008. The cylinders are physically rated for 20lb capacity but filled to 15lb. AmeriGas Cylinder Exchange uses the same practice. Refill at a propane dealer fills to the full 20lb.
Is Ferrellgas residential delivery more expensive than Blue Rhino per-gallon?
No, dramatically less per-gallon. Residential bulk delivery is the price-efficient channel; cylinder exchange is the convenience-priced channel. The two serve different use cases.
Where can I find Blue Rhino prices in my area?
Blue Rhino does not publish a per-store price list. Retail prices vary by retailer and region. Calling ahead or checking with the cashier at the partner retailer is the way to get current pricing.
Is Ferrellgas still publicly traded?
No. Ferrellgas Partners was a publicly traded MLP until the 2021 restructuring; since then the company has been privately held. Quarterly investor disclosures are no longer publicly available.