Propane vs Heating Oil: Which Is Cheaper for Home Heating? (2026)
Northeast-focused comparison. Heating oil and propane are close competitors on a per-BTU basis. System efficiency and state pricing determine which wins for your home.
Propane vs Heating Oil: Full Comparison (April 2026)
| Factor | Propane | Heating Oil (No.2) | Winner |
|---|---|---|---|
| Price per gallon (Apr 2026) | $2.78 (national avg) | $3.65 (national avg) | Propane |
| BTU per gallon | 91,500 BTU | 138,500 BTU | Heating Oil |
| Max system efficiency (AFUE) | 98% (condensing) | 95% (condensing oil) | Propane |
| Typical system efficiency | 90-96% AFUE | 82-90% AFUE | Propane |
| Cost per 100k BTU (typical eff.) | $3.19 | $3.03 | Heating Oil (slight) |
| Annual heating cost (avg home) | $2,400-$3,200 | $2,200-$3,100 | Similar |
| CO2 emissions per MMBtu | 139 lbs | 161 lbs | Propane |
| Sulfur dioxide emissions | Negligible | Moderate | Propane |
| Spill/environmental risk | Vapor disperses | Contamination risk $10k+ | Propane |
| Price volatility | Moderate (domestic supply) | High (crude oil linked) | Propane |
| Availability | All 50 states | Primarily Northeast | Propane |
| Tank needed | Yes (above or underground) | Yes (above ground typical) | Tie |
| Annual maintenance cost | $100-$200 | $200-$350 | Propane |
The BTU Math: Why Price Per Gallon Is Misleading
Heating oil contains 138,500 BTU per gallon vs propane's 91,500 BTU per gallon. This is why you cannot compare fuel prices by the gallon alone. You need to compare cost per unit of heat delivered.
The Full Calculation (April 2026 National Averages)
Propane: $2.78/gal / 91,500 BTU x 100,000 = $3.04 raw per 100k BTU
Propane at 95% AFUE: $3.04 / 0.95 = $3.19 per 100k BTU delivered
Heating Oil: $3.65/gal / 138,500 BTU x 100,000 = $2.64 raw per 100k BTU
Heating oil at 87% AFUE: $2.64 / 0.87 = $3.03 per 100k BTU delivered
Result: At national averages, heating oil delivers heat for $3.03/100k BTU vs propane at $3.19/100k BTU - a 5% difference. This varies significantly by state.
Northeast State-by-State: Propane vs Heating Oil (April 2026)
This comparison matters most in the Northeast where both fuels are widely used. Costs per 100k BTU based on typical system efficiencies (propane 95% AFUE, oil 87% AFUE).
| State | Propane $/gal | Heating Oil $/gal (est.) | Propane /100k BTU | Oil /100k BTU | Cheaper Fuel |
|---|---|---|---|---|---|
| Connecticut | $3.78 | $4.10 | $4.35 | $3.41 | Heating Oil |
| Maine | $3.82 | $4.15 | $4.39 | $3.46 | Heating Oil |
| Massachusetts | $3.89 | $4.20 | $4.47 | $3.50 | Heating Oil |
| New Hampshire | $3.72 | $4.05 | $4.28 | $3.37 | Heating Oil |
| Rhode Island | $3.68 | $4.00 | $4.23 | $3.33 | Heating Oil |
| Vermont | $3.95 | $4.25 | $4.54 | $3.54 | Heating Oil |
| New York | $3.58 | $3.90 | $4.12 | $3.25 | Heating Oil |
| Pennsylvania | $3.28 | $3.70 | $3.77 | $3.08 | Heating Oil |
Heating oil prices are estimated based on EIA residential heating oil data. High Northeast propane prices make heating oil economically competitive in this region despite national propane being slightly pricier on a BTU basis.
Propane vs Heating Oil FAQ
Is propane or heating oil cheaper in 2026?
At national average prices in April 2026, propane ($2.78/gal) and heating oil ($3.65/gal) cost approximately the same per useful BTU after accounting for their different BTU content and typical system efficiencies. Propane at $3.19/100k BTU is slightly more expensive than heating oil at $3.03/100k BTU. However, propane furnaces can achieve 95 to 98% AFUE while oil boilers typically max out at 87 to 95% AFUE, partially closing the gap. The comparison changes significantly by state.
Is propane cleaner than heating oil?
Yes, propane burns significantly cleaner than heating oil. Propane produces approximately 139 lbs of CO2 per million BTU, compared to 161 lbs for heating oil - about 14% less. Propane also produces minimal sulfur dioxide, particulate matter, and other pollutants compared to oil. Bioheat blends (heating oil with up to 20% biodiesel) reduce oil's emissions but still do not match propane's cleanliness.
How much does it cost to switch from heating oil to propane?
Switching from oil to propane typically costs $3,000 to $7,000 for a whole-home conversion. This includes: oil tank removal or abandonment ($500 to $1,500), new propane tank purchase and installation ($1,500 to $2,800), propane furnace or boiler installation ($2,000 to $5,000 if the existing oil furnace needs replacing), and gas line from tank to house ($500 to $1,500). Some homeowners can keep their oil appliances if a dual-fuel kit is available. Annual propane savings of $200 to $800 vs oil typically yield a 5 to 15 year payback.
Which is safer to store: propane or heating oil?
Heating oil has a higher safety margin in some respects: it will not ignite unless heated above 140F, so a spilled puddle will not ignite from a spark the way propane vapor can. However, oil spills create environmental contamination that can be very expensive to clean up ($10,000 to $100,000+). Propane leaks dissipate into the air and leave no environmental residue. Both fuels are safe with proper installation and maintenance. Propane requires pressure containment; oil requires spill containment.