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The weekly (1/23/12) average national cost of Residential Heating Oil was $3.938 per gallon. To fill a 175 gallon tank the fill up cost would be $594.65 or an annual cost of approximately $2,378.60 (4 fills per year). The weekly (1/23/12) average national cost of Residential Propane was $2.863 per gallon. To fill a 250 gallon tank the fill up cost would be 715.75 or an annual cost of approximately $2863.00 (4 fills per year).
Cost of propane vs natural gas. The cost comparison between propane and natural gas is much easier to determine because unlike electricity, natural gas and propane can be directly compared based on their individual BTU ratings. Letâs assume the cost for natural gas is $15.00 per 1,000 cubic feet. This means that $15.00 will purchase approximately 1.03 million BTUâs of energy. This would be equivalent to 11.26 gallons of propane. At $2.50 per gallon of propane, natural gas would be a more cost effective energy solution. Breaking it down even further, natural gas needs to be more than $28.00 per 1,000 cubic feet for propane to be a more cost effective energy solution (provided the cost for propane is $2.50 per gallon).