Tank fees explained
The per-gallon price gets all the attention, but for propane customers especially, the tank in the yard comes with its own quiet economics: rental fees, minimum-use charges, and an ownership rule that decides whether you can shop for fuel at all. Here's every common fee and what it's actually for.
The big rule: who owns the propane tank owns the fill
This is the single most misunderstood fact in the propane business, so we'll say it plainly: if your propane tank belongs to a propane company, only that company is allowed to fill it. That's not a sales trick — it's a safety and liability rule of the industry. The company that owns the tank is responsible for its condition, its regulator, and its valves; no competitor will put gas into another company's tank, and you shouldn't ask a driver to. It means a leased propane tank ties you to one supplier for as long as that tank sits in your yard.
Heating oil is the opposite world: oil tanks are almost always owned by the homeowner, which is why oil customers can call any company in the directory for a fill. If freedom to shop matters to you, this difference alone is worth weighing — see Propane vs. heating oil in Ohio.
The common fees, decoded
- Tank rent / lease fee. An annual (sometimes monthly) charge for a company-owned propane tank. In exchange, the company owns the maintenance: regulators, periodic checks, and eventual tank replacement. If you own your tank, there's no rent — but the maintenance is yours too.
- Minimum-use fee. Some leases say: use at least X gallons a year through this tank, or pay a fee (or a higher rent). It exists because a big tank serving a tiny load — a fireplace and a cookstove — still costs the company the same to set, maintain, and eventually retrieve. Low-use customers get surprised by this one; ask about it before the tank is set, not after the first bill.
- Tank monitor fee. A cellular monitor that reports your tank level to the company (and often to an app on your phone). Sometimes free on automatic delivery, sometimes a small monthly or annual fee. Genuinely useful — it's the gadget that ends run-outs — but ask whether it's required or optional.
- Delivery / hazmat / regulatory fees. Per-delivery or per-gallon surcharges under various names. Every company has operating costs to recover; the question to ask is simply whether the quoted per-gallon price is the whole price or the starting price.
- Emergency / after-hours fee. For the 9 p.m. run-out call. Fair enough — a driver came out at night — but the amount varies a lot between companies. Ask in summer, when nobody's desperate.
- Tank pickup / closeout fee. If you switch propane companies, the old company retrieves its tank, and some charge for the pickup, and sometimes for pumping out and crediting (or not crediting) the gas left in it. Find out the terms for the gas remaining in the tank — it can be several hundred dollars' worth.
- Early termination fee. On contracts with a set term, leaving early can cost money. Know your term and your renewal date.
Buying your own propane tank
You can buy a propane tank — new from a dealer, or sometimes the one already in your yard from the company that owns it (they're not obligated to sell). Owning it means any supplier can fill it, which restores your ability to shop. The trade-offs: the purchase price up front, and every repair, regulator, and recertification is on you. A new supplier will also typically want to inspect and leak-check a customer-owned tank before the first fill — a reasonable, one-time step. For a high-use household that plans to stay put for years, ownership often pays. For a low-use household, the rental is frequently the better deal once the minimum-use math is honest.
Before you sign for a tank: ask four questions — What's the rent? What's the minimum-use requirement? What does it cost to end this, including the gas in the tank? And can I buy the tank later, at what formula? The answers, in writing, are the difference between a fair lease and a trap. More in Questions to ask a fuel company.