What You’ll Learn
What happens to my leased tank if I decide to switch companies?
If you decide to switch, the tank’s owner will typically come to your property to pick it up.
To avoid service interruptions, you’ll need to coordinate this removal with the installation of your new tank from the new supplier.
3 Things You Need to Know:
This blog was updated April 2026.
If you lease your propane tank from a propane supplier, there are a few extra hoops to jump through when you want to switch propane companies.
This can be easy if the companies cooperate, but it can get frustrating if they don’t.
Here’s what you need to know if you lease your propane tank and want to switch companies.
3 Things You Need To Know to Be a Smart Propane Consumer
1. The company that owns the tank will take the tank back
This is a standard practice in the propane gas industry, but many consumers are caught off guard when their propane tank is taken away.
Make sure you schedule the time that the tank will be removed from your property so you can schedule an installation with the new company. This way, you avoid any service interruptions that inconvenience you.
2. There will be extra fees involved
When you cut your contract with a propane company, there are usually costs associated. If the company is removing its tank from your property, these costs may include:
- Termination fee – usually around $100
- Propane tank pump-out fee – tanks can’t be removed if they are above 5% capacity. The company will charge you a pump-out fee to remove the extra propane. Check the price per gallon that the company offers to buy back your propane.
- Propane pick up fee – this can range from $25-100
Note: Not all companies will charge these fees. These are just common industry fees to ask your propane company about.
3. You might be able to purchase the tank from the old company (and resell it to your new company)
Before you go through the hassle of uninstalling and reinstalling the propane tank from your property, ask the propane company if you can purchase the propane tank from them.
Then, offer to sell it to the new company that you choose. Or you can choose to own your tank, though leasing is often more cost-effective.
While this practice is not common, we have seen some companies cooperate with this.
This approach is especially convenient if you have an underground propane tank. That way, you won’t need to have your yard excavated.
Don’t Let Termination Fees Trap You in a Bad Contract
Ready to switch to a provider that puts your family first? Kauffman Gas will cover up to $500 of your current supplier’s termination fees to make your transition painless.
Become a Kauffman Customer today!
FAQs
Is it expensive to switch propane companies if I lease my tank?
It can be, as many companies charge around $100 for termination, plus additional fees for tank pick-up and pumping out leftover gas.
However, Kauffman Gas helps offset these costs for new customers by covering up to $500 in termination fees from your previous supplier.
Will I lose the propane that is already in my leased tank?
Not necessarily, but you won’t be able to move it to a new tank yourself.
Your old provider will typically pump it out and should credit you for the remaining gallons, though they often charge a “pump-out fee” to do so.
Can I just buy the tank I’m currently leasing?
In some cases, yes.
You can ask your current provider for a buyout price. If they agree, you can then own the tank outright or even resell it to your new provider, which avoids the need to dig up your yard or swap equipment.