Heating Oil Cost

• Home heating oil is measured by the gallon and stored in a heating oil tank. Aboveground tanks are typically 250-275 gallons and might need refilling four to six times in the heating season (October to March), and underground tanks are typically 500-1,000 gallons and might need refilling one to three times a winter, depending on furnace efficiency and usage.
• Each year, from October to March, the EIA posts weekly nationwide average prices for wholesale and residential heating oil. According to EIA historical data, from January to March 2012 the average price per gallon for residential heating oil was $3.85 -$4.12, or about $900 -$1,000 to refill a 275-gallon tank and $1,800 -$2,000 for a 550-gallon tank; for the 2010-2011 season, the average price was $2.91 -$3.88 a gallon; and from January 2005 to March 2010, the average was $1.95 -$2.96 a gallon.
• Location-specific pricing data is available during the heating season for Maine, Massachusetts, Michigan, Nebraska, New Jersey and New York.
• Most companies charge the market rate for a one-time or spot delivery, but offer slightly discounted prices (typically 10 cents to 25 cents less than the market price the day the deal is signed) for pre-paid or pre-buy contracts covering all deliveries for the heating season. (Contracts can help consumers if heating oil prices increase over the winter, but customers who signed contracts in July 2008 saw the market rate tumble that winter, and many paid penalties of $200 -$300 or more to get out of high-priced contracts.)
• Heating fuel cooperatives or buying groups like the nationwide Heat USA, Co-op Power in New England or Pilgrim Oil Group in New York, New Jersey, Connecticut and Massachusetts charge a membership fee (typically $20 -$25 a year) and negotiate a discounted price per gallon (typically 10 25 cents off the market price) for their members.

• The tank's fill pipe must be accessible and visible to the delivery company. Before winter starts and after each delivery, check that the fill cap and vent cap are in place and on tight. Alaska's Department of Environmental Conservation explains how to maintain a heating oil tank.

• Some contracts include annual cleaning and service for the home's heating system (furnace) for another $100 -$300 per winter season.

• Have the heating oil tank filled in late summer or early fall, when prices are typically lower.
• Some heating oil companies offer reward programs. For example, Marathon Energy in Brooklyn, NY, awards one point for every gallon of heating oil purchased, and 1,000 points can be redeemed for a $10 Visa debit card; Mansfield Oil in New Jersey gives a $1 credit per gallon for up to 18% of the total gallons purchased from Mansfield; and Neighboroil in Massachusetts awards points for referring other new customers, purchasing products from specific retailers or interacting on the company's website, with points automatically redeemed for discounts on the per-gallon cost of heating oil.
• The US Department of Health & Human Services provides information about the Low Income Home Energy Assistance Program (LIHEAP), helping helps low-income households meet urgent home energy needs. LIHEAP is funded by the federal government but handled by each state, so eligibility rules and assistance varies.

• Generally, heating oil dealers are local businesses. For lists of dealers, search for a local oilheat or fuel dealers council/association, like those in Massachusetts, New Hampshire, Eastern New York, the Hudson Valley, Long Island, New York City, the Pacific Northwest or South Jersey.

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