Propane Benefits and Considerations

Also known as liquefied petroleum gas (LPG), propane is a domestically produced, well-established fuel. Using propane as a vehicle fuel increases energy security, can provide the convenience of on-site fueling economically, and reduces air pollution and the environmental impacts of vehicles.

Energy Security

The United States became a net exporter of petroleum in 2020 with exports surpassing imports, although imports of 8.47 million barrels per day in 2021 remained an important part of balancing supply and demand for domestic and international markets. Overall the transportation sector accounts for about 30% of total U.S. energy needs and 70% of U.S. petroleum consumption. Diversifying the U.S. fuel supply with domestic fuels like propane—the vast majority of which is produced here and distributed via an established infrastructure—has helped reduce our overall use of imported petroleum in recent years. Using alternative fuels and other advanced technologies to reduce petroleum consumption continues to strengthen national security and reduce transportation energy costs for businesses and consumers.

Vehicle and Infrastructure Availability

A variety of medium- and heavy-duty propane vehicle models are available through original equipment manufacturers and select dealerships. Also available for light- and medium-duty vehicles are engines that are designed as prep-ready, meaning they are designed to handle the higher temperature and lower lubricity of propane. For vehicle options, see the Alternative Fuel and Advanced Vehicle Search or, for light-duty models, the Alternative Fuel and Advanced Technology Vehicles list.

While propane vehicles can cost several thousand dollars more than comparable gasoline vehicles, the cost of the fuel itself is typically lower than that of gasoline, so the return on investment can be quick. In comparison to diesel vehicles (such as school buses), however, propane models can cost on par with their diesel counterparts because of the diesel vehicle's more expensive engine and emissions controls. Fleets and consumers also have the option of economically, safely, and reliably converting in-use light-, medium-, and heavy-duty gasoline vehicles for propane operation using qualified system retrofitters. It's critical that all vehicle and engine conversions meet the emissions and safety regulations and standards instituted by the U.S. Environmental Protection Agency, the National Highway Traffic Safety Administration, the National Fire Protection Association (Code 58), and state agencies like the California Air Resources Board. Learn about propane vehicle conversions.

By using the AFDC Station Locator tool, fleets and private users can identify nearby public and private fueling stations. Propane stations are categorized as either primary or secondary. Primary stations have dedicated vehicle services and tend to be less expensive than secondary stations, which mostly serve the propane tank and bottle market.

Fleets can use existing public infrastructure or work with local propane marketers to establish private infrastructure and a pricing structure, which can greatly reduce the end cost of the fuel. Negotiating a supply contract can be beneficial to fleets in terms of reducing their overall fuel cost. Costs will depend on the volume of fuel that’s indicated in the contract and the complexity of the equipment being installed. Learn more about the cost of propane infrastructure.

Fuel Economy and Performance

Propane at primary infrastructure sites (those that frequently provide fuel to vehicles) typically costs less per gallon than gasoline, and propane vehicles provide a comparable driving range to conventionally fueled vehicles. Propane’s lower British thermal unit rating per gallon results in lower fuel economy, but its lower per-gallon cost can quickly offset the lower fuel economy.

The potential for lower maintenance costs makes propane a popular choice for high-mileage vehicles. Propane's high octane rating, combined with its low-carbon and low oil-contamination characteristics, has resulted in improved engine life compared to conventional gasoline engines. Cold-start problems can often be reduced as well. This is because the fuel's mixture (propane and air) is completely gaseous when entering the engine's combustion chamber, and propane engines do not require an enriched fuel mixture during cold-weather startups the way other, liquid-fueled engines do.

Public Health and Environment

Compared with vehicles fueled by conventional diesel and gasoline, propane vehicles can produce lower amounts of some harmful air pollutants and greenhouse gases, depending on vehicle type, drive cycle, and engine calibration. Learn more about propane emissions.