Propane Price Trend and Forecast 2026-2027

Propane prices in India, the highest-cost reporting region, eased 5.1% in Q2 2026 to USD 740.00/MT from USD 780.00/MT in Q1, as the market unwound a sharp Q1 spike tied to Middle East supply disruptions that had briefly pushed prices to their highest levels of the year. US prices reached USD 675.00/MT in June, down 5.6% from Q1, as domestic supply remained steady, export availability improved, and seasonal heating demand weakened following the colder winter months. Globally, the average fell from USD 745.90/MT in Q1 to USD 707.20/MT in Q2, a 5.2% decline, following an extraordinary 11.8% surge in Q1 tied to US airstrikes in Iran on February 28 that disrupted regional energy markets. For H2 2026, the outlook remains firm but volatile, with crude oil, natural gas liquids supply, freight costs, and winter heating demand all expected to continue shaping prices through the remainder of the year.

Propane is a three-carbon alkane gas, typically stored and transported as liquefied petroleum gas under pressure, valued for its high energy content, clean-burning properties, and ease of storage and distribution. It serves widespread applications in residential and commercial heating, cooking, agricultural crop drying, industrial fuel use, and power backup systems, alongside its role as a petrochemical feedstock in propane dehydrogenation units that convert it into propylene for polypropylene and other downstream chemicals. In China, propane dehydrogenation demand is especially significant given the country's substantial polypropylene manufacturing base, while a continued US-China trade truce through November 2026 has kept a 10 percent Chinese tariff on US liquefied petroleum gas imports in place, encouraging greater reliance on Middle Eastern suppliers for Asian buyers. Crude oil and natural gas liquids supply, seasonal heating and petrochemical demand, and freight and trade policy conditions are what drive prices in this market.

Propane Price Forecast for 2026

The outlook for Propane through H2 2026 remains firm but volatile, with prices continuing to be influenced by crude oil markets, natural gas liquids supply, freight costs, winter heating demand, and petrochemical consumption. China's propane dehydrogenation demand is expected to remain a key structural driver given the country's substantial polypropylene manufacturing base, while the continuation of the US-China trade truce and associated tariff structure continues shaping cargo sourcing decisions and trade flows between Middle Eastern and US suppliers.

The main upside risk is a renewed escalation of Middle East geopolitical tensions affecting regional energy supply chains, similar to the disruption that drove the sharp Q1 2026 spike, which could push prices back toward their recent peak. The main downside risk is continued ample natural gas liquids supply combined with mild winter heating demand, which could extend the current easing trend further into the back half of the year.

For the Quarter Ending June 2026

Propane Prices Q2 2026:

• India: USD 740.00/MT
• Japan: USD 715.00/MT
• China: USD 690.00/MT
• United States: USD 675.00/MT

Propane Prices in India

Indian Propane prices averaged USD 740.00/MT in Q2 2026, the highest of any region tracked here, down 5.1% from USD 780.00/MT in Q1, as the market continued unwinding the sharp Middle East disruption-driven spike recorded earlier in the year even as strong import demand kept this market at a premium. Buyers and sellers alike watched these developments closely for signs of further movement.

Why did the price of Propane change in Q2 2026 in India?

Strong import demand continued keeping this market at a premium relative to the other three regions tracked here, even as easing Middle East supply disruptions and softer downstream sentiment pulled prices down substantially from their Q1 2026 peak. These conditions are expected to remain a key factor shaping pricing in the near term. Regional supply and demand balances continued to evolve as the quarter progressed.

Propane Prices in Japan

Japanese prices averaged USD 715.00/MT in Q2 2026, down 4.7% from USD 750.00/MT in Q1, as easing regional supply tightness continued pulling prices down from the elevated levels recorded during the Q1 disruption even as steady industrial demand remained firm. These conditions are expected to remain a key factor shaping pricing in the near term. Regional supply and demand balances continued to evolve as the quarter progressed.

Why did the price of Propane change in Q2 2026 in Japan?

Steady industrial fuel and heating demand continued supporting baseline consumption even as easing regional supply tightness, following the resolution of the Middle East disruption that had driven prices sharply higher earlier in the year, pulled pricing down through the quarter. Regional supply and demand balances continued to evolve as the quarter progressed. Buyers and sellers alike watched these developments closely for signs of further movement.

Propane Prices in China

Chinese prices reached USD 690.00/MT in June 2026, down 5.5% from USD 730.00/MT in Q1, as domestic demand from petrochemical units remained cautious and buyers limited fresh spot purchases amid ample import arrivals and comfortable availability. Regional supply and demand balances continued to evolve as the quarter progressed. Buyers and sellers alike watched these developments closely for signs of further movement.

Why did the price of Propane change in Q2 2026 in China?

Softer downstream consumption from propane dehydrogenation units reduced procurement urgency, while adequate import arrivals helped maintain comfortable availability, with many petrochemical buyers avoiding large volume commitments amid softer regional market sentiment. Buyers and sellers alike watched these developments closely for signs of further movement. These conditions are expected to remain a key factor shaping pricing in the near term. Regional supply and demand balances continued to evolve as the quarter progressed.

Propane Prices in United States

US prices reached USD 675.00/MT in June 2026, the lowest of the four regions, down 5.6% from USD 715.00/MT in Q1, as domestic supply remained steady, export availability improved, and seasonal heating demand weakened following the colder winter months. Buyers and sellers alike watched these developments closely for signs of further movement. These conditions are expected to remain a key factor shaping pricing in the near term.

Why did the price of Propane change in Q2 2026 in United States?

Production from natural gas liquids streams continued supporting inventory levels, while seasonal demand from heating applications weakened after the colder months, with petrochemical buyers showing selective interest rather than aggressive procurement through the quarter. These conditions are expected to remain a key factor shaping pricing in the near term. Regional supply and demand balances continued to evolve as the quarter progressed.

For the Quarter Ending March 2026

Propane Prices Q1 2026:

• India: USD 780.00/MT
• Japan: USD 750.00/MT
• China: USD 730.00/MT
• United States: USD 715.00/MT

Propane Prices in India

Indian prices surged 11.4% in Q1 2026 to USD 780.00/MT from USD 700.00/MT in Q4 2025, as US airstrikes in Iran on February 28 disrupted regional energy markets and pushed prices sharply higher across import-dependent Asian markets. Regional supply and demand balances continued to evolve as the quarter progressed. Buyers and sellers alike watched these developments closely for signs of further movement.

Why did the price of Propane change in Q1 2026 in India?

The airstrikes in Iran and the immediate fallout changed market dynamics sharply, as major world events often do, pushing prices to their highest levels of the quarter before the disruption began resolving and prices started retreating from their peak. Buyers and sellers alike watched these developments closely for signs of further movement. These conditions are expected to remain a key factor shaping pricing in the near term.

Propane Prices in Japan

Japanese prices surged 11.9% in Q1 2026 to USD 750.00/MT from USD 670.00/MT in Q4 2025, tracking the broader Middle East-linked supply disruption affecting regional propane availability. Buyers and sellers alike watched these developments closely for signs of further movement. These conditions are expected to remain a key factor shaping pricing in the near term. Buyers and sellers alike watched these developments closely for signs of further movement.

Why did the price of Propane change in Q1 2026 in Japan?

Regional supply chains absorbed the shock of the Middle East disruption, with elevated freight and insurance costs on affected shipping routes continuing to support firm pricing across import-dependent Asian markets through much of the quarter. These conditions are expected to remain a key factor shaping pricing in the near term. Regional supply and demand balances continued to evolve as the quarter progressed.

Propane Prices in China

Chinese prices surged 12.3% in Q1 2026 to USD 730.00/MT from USD 650.00/MT in Q4 2025, tracking the broader global energy market disruption even as China maintained its 10 percent tariff on US liquefied petroleum gas imports. These conditions are expected to remain a key factor shaping pricing in the near term. Regional supply and demand balances continued to evolve as the quarter progressed.

Why did the price of Propane change in Q1 2026 in China?

China maintained a 10 percent tariff on US liquefied petroleum gas imports even as broader tariff tensions eased under the continuation of the US-China trade truce, continuing to influence cargo sourcing decisions and encourage greater reliance on Middle Eastern suppliers. Regional supply and demand balances continued to evolve as the quarter progressed. Buyers and sellers alike watched these developments closely for signs of further movement.

Propane Prices in United States

US prices surged 11.7% in Q1 2026 to USD 715.00/MT from USD 640.00/MT in Q4 2025, as the immediate fallout from the February 28 Iran airstrikes disrupted crude oil markets and pushed propane prices sharply higher before the disruption began resolving. Regional supply and demand balances continued to evolve as the quarter progressed. Buyers and sellers alike watched these developments closely for signs of further movement.

Why did the price of Propane change in Q1 2026 in United States?

Sometimes supply disruptions are resolved quickly and a price spike one day ends up followed by a decline that is sometimes as fast as the spike, with the February 28 airstrikes in Iran and their immediate fallout initially pushing US propane prices sharply higher before the disruption began resolving into Q2. Buyers and sellers alike watched these developments closely for signs of further movement.

Quarterly Propane Price Trends

Global Propane prices firmed steadily through 2025 before spiking sharply in Q1 2026 as US airstrikes in Iran on February 28 disrupted regional energy markets and pushed prices to their highest levels of the year, before easing back in Q2 as the disruption began resolving and ample natural gas liquids supply combined with softer seasonal heating demand pulled prices down across every region tracked in this report.

What was Propane Price in 2025?

Propane firmed steadily across every market covered in this report through 2025, tracking gradually rising crude oil and natural gas liquids costs alongside strong seasonal heating and petrochemical demand, with India posting the strongest annual gain of the four regions before the extraordinary spike-and-relief pattern that followed in 2026. Regional supply and demand balances continued to evolve as the quarter progressed.

Propane Prices in India in 2025

Indian prices firmed from about USD 620.00/MT in Q1 2025 to USD 700.00/MT by Q4, a gain of roughly 12.9%, the strongest annual increase of the four regions, setting the stage for the sharp Q1 2026 spike that followed once Middle East tensions escalated. These conditions are expected to remain a key factor shaping pricing in the near term. These conditions are expected to remain a key factor shaping pricing in the near term.

Propane Prices in Japan in 2025

Japanese prices firmed from about USD 600.00/MT in Q1 2025 to USD 670.00/MT by Q4, up roughly 11.7%, tracking steady industrial and heating demand growth through the year across this import-dependent market. Regional supply and demand balances continued to evolve as the quarter progressed. Regional supply and demand balances continued to evolve as the quarter progressed. These conditions are expected to remain a key factor shaping pricing in the near term.

Propane Prices in China in 2025

Chinese prices firmed from about USD 580.00/MT in Q1 2025 to USD 650.00/MT by Q4, a gain of roughly 12.1%, tracking growing propane dehydrogenation demand tied to China's substantial polypropylene manufacturing base. Buyers and sellers alike watched these developments closely for signs of further movement. Buyers and sellers alike watched these developments closely for signs of further movement. Regional supply and demand balances continued to evolve as the quarter progressed.

Propane Prices in United States in 2025

US prices firmed from about USD 570.00/MT in Q1 2025 to USD 640.00/MT by Q4, up roughly 12.3%, the strongest annual increase of the four regions given historic propane and propylene stock builds through the year. These conditions are expected to remain a key factor shaping pricing in the near term. These conditions are expected to remain a key factor shaping pricing in the near term.

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Expert Market Research: Your Source for Real-Time Propane Price Intelligence

Expert Market Research tracks Propane prices continuously across every major producing and consuming region, combining crude oil and natural gas liquids supply data, seasonal heating and petrochemical demand signals, and freight and trade policy trends into a single, regularly updated view of the market. Our team can help your procurement function benchmark current offers, plan purchases around the spike-and-relief pattern covered in this report, and build a defensible view of where this essential energy commodity is headed next. Reach out to our team for a tailored briefing or a deeper look at any of the regional markets covered here.