How Much Does It Cost to Heat Your Home With Oil?

Winter's here, and if you're like millions of homeowners in the United States, you're probably wondering how much filling your heating oil tank is going to cost this year.

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Well, grab a hot cup of coffee and let's dive into the world of oil tank refill costs, because understanding your potential heating expenses doesn't have to be painful.

Is It Expensive to Heat Your Home With Oil?

Heating with oil has traditionally been more costly than with natural gas, but it's often more affordable than using an electric heating system. The expense for heating oil really comes down to several variables: a home's size, its insulation quality, the local climate and current oil prices. A well-insulated 2,000-square-foot modern home will likely use significantly less oil than a drafty Victorian dwelling, even if they're in the same neighborhood.

On Average, How Much Does Oil Heat Cost Per Month?

Considering all the above-mentioned factors, it's easy to see how monthly heating costs can vary dramatically. For instance, in Connecticut, homeowners pay about $76 per month (CAD 105) for heating oil during the winter. In Massachusetts, residents paid an average of $1,841 (CAD 2,551) to heat their homes during the 5-month 2024 heating season.

To get a more fine-tuned idea of the monthly cost, let's look at the per-gallon price and gallons used to arrive at an estimate:

Heating oil costs between $2.73 and $3.70 per gallon (CAD 3.75 and CAD 5.09) based on the most recent price data available from the U.S. Energy Information Administration (EIA).

You can expect to use about 2 gallons of oil per day when it's 50 degrees Fahrenheit outside. When the temperature drops to 15 degrees, you might use up to 8 gallons a day.

This translates to a potential cost range of $164 to $222 (CAD 226 to CAD 305) for a 30-day supply of heating oil.

Where Can I Buy Heating Oil?

Gone are the days when you had to play phone tag with multiple suppliers to find the best price. Today's heating oil market offers several convenient options:

• Local dealers. Traditional heating oil companies remain popular choices, offering established relationships and local service. Many provide automatic delivery programs to ensure you never run out.

• Online platforms. Modern services such as FuelSnap offer a better way to buy heating oil online, allowing you to compare prices, choose from trusted local dealers, read honest customer reviews and order oil on your own terms. Similarly, platforms like FuelWonk.com connect you with multiple prequalified dealers that submit competitive quotes.

• Regional suppliers. Companies such as Suburban Propane serve communities across the Northeast with reliable automatic fuel delivery, budget payment plans, safety-trained professionals and 24-7-365 live-voice emergency service.

How Much Does 100 Gallons of Heating Oil Cost?

Based on the EIA's average nationwide price of $3.44 per gallon, 100 gallons of heating oil would cost $344 (CAD 473). Keep in mind that dealers may charge more per gallon for fill-ups under 100 gallons, so larger orders often provide better per-gallon rates.

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How Long Will 100 Gallons of Heating Oil Last?

The amount of time 100 gallons of heating oil lasts depends heavily on the current weather conditions, your usage patterns and your home's characteristics. As mentioned above, you might use 2 gallons per day during milder winter weather. At this rate, 100 gallons would last approximately 50 days.

However, when Old Man Winter really shows his teeth, consumption increases significantly. During the coldest weather in January and February, when temperatures drop to 15 degrees or below and you're using 8 gallons a day, 100 gallons may last only 12 to 13 days.

The 275-gallon tank installed in most homes only takes about 240 gallons for a fill-up due to safety requirements and tank design. Those 240 gallons would last roughly 4 months if you're using an average of 2 gallons of oil per day, so 100 gallons might last about 1.5 to 2 months. If you're using 8 gallons a day, 100 gallons may only last a couple of weeks.

How Much Does an Oil Tank Refill Cost?

Your oil tank refill cost depends on your tank size and the current market price for oil. If you fill your 275-gallon tank to the 240-gallon mark at $3.44 per gallon, the estimated cost would be around $826 (CAD 1,136).

Depending on your oil usage, this size tank may need refilling 4 to 6 times during the heating season, whereas larger 500- to 1,000-gallon underground tanks may need refilling 1 to 3 times over the winter.

All CAD conversions are based on the exchange rate on the date of publication.