Essential Guide to Residential Heating Oil: What You Need to Know

Understanding Residential Heating Oil

During winter, many homeowners depend on various energy sources to keep their homes warm. While electricity, propane, and renewable options are common, residential heating oil remains a popular choice. A key benefit of heating oil suppliers is their delivery service, allowing storage in tanks. However, not all heating oils are identical. Despite serving the same purpose, different types and grades vary significantly — influencing cost, efficiency, and environmental impact. Here's a comprehensive look at heating oil varieties, pricing, and selection tips.

Types of Heating Oil

Kerosene
As one of the lightest fuels for home heating, kerosene is refined from #1 fuel oil with impurities removed, making it safer and cleaner. It has a low boiling point and viscosity, often used outdoors for portable heaters. Indoors, it’s ideal for temporary setups like camping or during outages, thanks to its long-lasting lamps and odor control features.

Gas Oil

Known as red diesel or 35-second oil, gas oil is heavier and less clean than kerosene. Mainly used in older boilers for agricultural and commercial purposes, its use in residential heating is less common.

Choosing the Right Heating Oil

The type of oil compatible with your system depends on your heating setup. Typically, your boiler will have a label indicating the required oil. If unsure, consult a professional technician to determine the best choice.

Heating Oil Grades

Heating oils are categorized into main and intermediate grades, each with distinct qualities. Higher-grade oils cost more but burn cleaner and more efficiently, reducing environmental impact. The primary grades include Grade 1 and Grade 2, with Grade 1 being more affordable. Grade 2, similar to diesel, is commonly used and offers good efficiency. Intermediate grades are blends used in industrial burners, priced higher due to better performance. The lowest grade, Number 6, is cheaper but dirtier, requiring frequent system maintenance and gradually being phased out.

Cost Factors for Heating Oil

Heating oil expenses depend on several factors: house size, delivery method, and home insulation. Larger homes need more fuel, with a typical 2,500 sq ft house requiring between 550 and 1200 gallons, costing roughly $30 per gallon, totaling $1650–$3600. Delivery options include automatic scheduling, which is slightly cheaper, or on-demand will-call delivery for flexibility. Well-insulated homes retain heat better, reducing fuel needs by up to fifty percent.