How Much Does It Cost to Heat With Oil?

Posted on by Steve Williams

Heating oil is one of the most popular home heating fuels in the Northeast. It is cost effective, readily available, and found in more than seven million homes. But how much does it cost to heat with oil? Heating the average home will cost $1,200 to $2,000 per year for will-call customers, and $1,500 to $2,500 per year for automatic delivery customers. We will break this down – and more – in the post below!

How To Save Money On Home Heating Oil

There are five primary factors that contribute to how much it costs to heat a house with oil:

  1. Automatic Delivery vs. Will-Call: Will-call customers are those who only order heating oil as needed. By doing so, they save approximately $0.50 per gallon compared to automatic delivery customers. By shopping around and ordering heating oil online, you can realize tremendous savings in your heating oil costs.
  2. Size of the House: The larger the house, the more heating oil you can expect to burn. A 2,500 square foot house will use 570 to 1200 gallons of heating oil per year.
  3. Insulation and Windows: A well-insulated house with good windows can save up to 50% on heating costs. Check out these 10 tips for more ways to save on heating oil.
  4. Inside Temperature: The temperature you set the thermostat to can have a major impact on home heating oil costs. Monitor your fuel usage and program your thermostat to optimize temperature settings in your house.
  5. Outside Temperature: Sorry, but short of moving to the South, there’s not much we can help you with here!
it costs between 1200 and 2000 per year to heat the average home in the northeast with heating oil
An average-sized home in New England will use between 570 and 1200 gallons of heating oil per year. The average home will cost $1,200 to $2,000 per year to heat for will-call customers, and $1,500 to $2,500 per year for automatic delivery customers.

Annual Home Heating Oil Cost in New England

By choosing to order heating oil online as needed, homeowners will save an average of $0.50 per gallon. Just search for heating oil prices near me and check prices in your town. The alternative – automatic delivery – may be more convenient, as you don’t have to remember to order home heating oil. There is also the option of manually checking your oil tank gauge to identify when you need home heating oil, but with products like the Smart Oil Gauge, you can easily track your heating oil tank and order oil only as needed.

The other ways to save money include sealing up drafty windows, and adding insulation to cold spaces. You may also consider investing in a programmable thermostat to optimize thermostat settings. If your home has forced hot air (hot air that comes through vents in the floor), it likely makes sense to turn the heat down during the day. If you have a boiler, you are probably better off leaving the temperature constant.

annual heating costs for oil-heated homes in the northeast
The total annual heating costs for oil-heated homes are broken down here. These were based on an average 2018-2019 will-call price of $2.29 per gallon and automatic delivery price of $2.79 per gallon. Heating oil usage rates were based on an average heating season in Connecticut.

How To Save Money On Heating Oil

With all this in mind, you should consider steps to save money on heating oil. The biggest and most immediate cost savings comes from switching from automatic delivery to will-call. Ordering heating oil online through a site like FuelSnap saves you an average savings of $0.50 per gallon – and often more!

Consider improving how well your house retains heat by upgrading windows and insulation. And finally, program the thermostat to lower the heat at night or when you’re not home, and you will reduce energy costs at your house.

Happy heating,

Steve