Heating with heating oil
Updated August 2026 · EIA average for the 2025–26 heating season (~$3.50/gal)
Quick answer: heating oil delivers heat at $29.73 per million BTU (85% AFUE oil furnace/boiler (older units 80%, new 87%+)) — #5 cheapest of 7 common options. A 2,000 sq ft home in a cold climate runs about $2,676/season.
The Northeast's fuel: high energy density delivered by truck to a tank. Costs track crude oil, so budget for swings season to season.
Pros
- • Very high energy content per gallon
- • Works anywhere a truck can reach
- • You can shop between delivery companies
Cons
- • Price volatility follows crude oil
- • Tank, deliveries and burner maintenance to manage
Season cost by home size & climate
| Home size | Mild | Moderate | Cold | Very cold |
|---|---|---|---|---|
| 1,000 sq ft | $446 | $892 | $1,338 | $1,784 |
| 1,500 sq ft | $669 | $1,338 | $2,007 | $2,676 |
| 2,000 sq ft | $892 | $1,784 | $2,676 | $3,568 |
| 2,500 sq ft | $1,115 | $2,230 | $3,345 | $4,460 |
| 3,000 sq ft | $1,338 | $2,676 | $4,014 | $5,351 |
Compare against everything else
Estimated heating load: 81 million BTU/season — a rough figure; insulation and thermostat habits move it a lot.
Season cost by fuel (edit any price — it's your local number that matters)
≈ 7,913 kWhs · season-average COP ≈ 3.0 for a modern cold-climate air-source unit (2.0–4.0 depending on climate)
≈ 900 therms · 90% AFUE furnace (standard 80%, condensing up to 97%)
≈ 6.1 tons · 80% efficient pellet stove (75–85% typical)
≈ 5.3 cords · 70% efficient modern EPA wood stove (open fireplaces can be 10% or worse)
≈ 688 gallons · 85% AFUE oil furnace/boiler (older units 80%, new 87%+)
≈ 984 gallons · 90% AFUE propane furnace (condensing up to 97%)
≈ 23,740 kWhs · baseboards, electric furnace or space heaters — 100% efficient at the unit, but every BTU is made from scratch
Estimates: national-average prices (sources on each fuel page) and typical system efficiencies. Your utility bill has your real per-unit price — plug it in above for a number you can act on.
FAQ
How much does it cost to heat a home with heating oil?+
At the current average price ($3.50/gallon) and a typical system (85% AFUE oil furnace/boiler (older units 80%, new 87%+)), heating oil delivers heat at $29.73 per million BTU — roughly $2,676 per season for a 2,000 sq ft home in a cold climate, less in milder ones.
Is heating oil cheap compared to other heating fuels?+
It ranks #5 of 7 common heating options by cost per delivered BTU at national-average prices. The Northeast's fuel: high energy density delivered by truck to a tank. Costs track crude oil, so budget for swings season to season.
What are the downsides of heating with heating oil?+
Price volatility follows crude oil. Tank, deliveries and burner maintenance to manage.