The Complete Guide to Buying Heating Oil in the US

12 min read · Updated March 2026

1. What Is Heating Oil?

Heating oil (also called kerosene or No. 2 fuel oil) is used by around 5.5 million US homes that aren't connected to the natural gas grid. It's stored in a tank on your property and burned in a furnace or boiler to heat your home and hot water.

Unlike natural gas, there's no single supplier - you buy from independent distributors, and prices vary significantly between them. That's why comparing prices before you order can save you hundreds of dollars a year.

2. Types of Heating Oil Explained

Most homes use No. 2 fuel oil. If your supplier offers a premium additive version, it can help keep your furnace running efficiently and reduce sludge buildup - but it costs a little more per gallon.

3. How Much Heating Oil Do I Need?

The average US home using oil central heating burns through 500–750 gallons per year. Your actual usage depends on:

• Property size and type - a 4-bed detached house uses roughly twice as much as a 2-bed townhouse
• Insulation quality - poor insulation can increase consumption by 30–40%
• Thermostat setting - each 2°F increase adds roughly 10% to your bill
• Furnace age and efficiency - modern condensing furnaces are 90%+ efficient vs. 70% for older models
• Number of occupants - more people means more hot water and heating hours

4. When Is the Best Time to Buy?

Heating oil prices fluctuate throughout the year based on demand, crude oil prices, and market conditions. Here's the seasonal pattern:

Pro tip: Sign up for free daily price alerts and order when you see prices dip.

5. 10 Ways to Save Money on Heating Oil

1. Always compare prices - prices vary by $100+ between suppliers for the same order. Compare on The Fuelyard every time.
2. Buy in summer - fill your tank in May–September when prices are lowest.
3. Order larger quantities - the more you order, the lower the per-gallon price. 300+ gallons gets you into better price bands.
4. Don't wait until you're nearly empty - desperate buyers pay more, and emergency delivery fees are steep.
5. Turn your thermostat down 2°F - saves roughly 10% on your heating bill with minimal comfort impact.
6. Service your furnace annually - a well-maintained furnace runs more efficiently. A service costs ~$150 but can save $300+ per year.
7. Insulate your home - attic insulation, wall insulation, and weatherstripping are the most cost-effective improvements.
8. Use a programmable thermostat - only heat your home when you need to. Drop temperatures when you're asleep or out.
9. Bleed your radiators - trapped air makes them less efficient. Check at the start of each winter.
10. Consider a group buy - join neighbours to place a combined order for a bulk discount.

6. How to Order Heating Oil

Ordering through The Fuelyard takes under 2 minutes:

7. Oil Tank Sizes and Types

Oil tanks come in two main types:

• Single-skin tanks - cheaper but require a secondary containment (bund) to meet regulations.
• Double-wall tanks - double-walled with built-in containment. Required in many states for tanks over 660 gallons, near water sources, or in certain positions.

Common household sizes:

8. Tanker Sizes Explained

When ordering, you'll choose a tanker size based on access to your property:

• Normal (6-wheel) - standard delivery vehicle. Choose this unless you have access issues.
• Small (4-wheel) - for properties with tighter access, low bridges, or weight restrictions. ~10ft wide, ~25ft long.
• Baby tanker - for very restricted access with narrow lanes, low overheads. ~8ft wide, ~16–18ft long. Usually costs more per gallon.

If you're unsure, choose Normal and add a note about access when checking out - your supplier will contact you if they need to send a smaller tanker.

9. What to Expect on Delivery Day

• Standard delivery is typically 3–7 working days from ordering.
• The driver will pump oil directly into your tank through a hose. You don't need to be home if your tank is accessible.
• Make sure the path to your tank is clear and the fill cap is accessible.
• The driver will leave a delivery ticket showing the exact gallons delivered.
• Check your tank gauge after delivery to confirm the level.

10. Boiler Maintenance and Efficiency

Your furnace is the single biggest factor in your heating costs. A well-maintained modern furnace is 90%+ efficient, while an old unmaintained one might only be 65–70%.

Annual service checklist:

• Get your furnace serviced by a licensed HVAC technician every year
• Replace the nozzle and oil filter annually
• Check the flue for blockages or corrosion
• Bleed radiators to remove air pockets (if you have a hydronic system)
• Check the oil tank for leaks, damage, or discoloration
• Consider upgrading to a condensing furnace if yours is 15+ years old

11. Frequently Asked Questions