What's the price gap between heating oil and K-1 kerosene?

EIA runs no weekly national survey for retail K-1, so we model it as #2 heating oil (~$5.54/gal, EIA, week of 2026-03-30) plus a typical refining and cold-flow premium of about $0.70/gal, i.e. ~$6.24/gal. The premium pays for the extra refining that lets K-1 flow where #2 gels; it varies by region and season.

At what temperature does an outdoor tank need a kerosene blend?

Straight #2 begins gelling around 10°F. Below 5°F, gelling risk is real. An 80/20 #2/K-1 blend flows reliably to -10°F. 70/30 to -20°F. 50/50 to -30°F.

Is full K-1 ever worth it?

Only for outdoor tanks in extreme-cold regions (northern Maine, far-north Vermont) or for kerosene-only space heaters. The price premium rarely pencils for a basement tank.

Heating oil vs kerosene

K-1 (ASTM D3699) cold-flows. #2 doesn't, below 10°F. Blend solves it for less. ASTM

K-1 has no EIA weekly retail survey, so the kerosene figure below is modeled: #2 heating oil ($5.54/gal, EIA) plus a typical $0.70/gal refining premium. Because K-1 is pricier per gallon and carries slightly less energy, it sits above #2 on effective $/MMBtu: the premium buys cold-flow, not cheaper heat. Blend, rather than run full K-1, whenever you can.

The bar chart

Heating oil (#2)$47.06/MMBtu eff @ 85%

Propane$32.44/MMBtu eff @ 90%

Natural gas$16.96/MMBtu eff @ 92%

Kerosene (K-1)$54.38/MMBtu eff @ 85%

Heat pump (ccASHP)$19.89/MMBtu eff @ 280%

Basis: EIA national residential prices, March 2026 (heating oil and propane from the week of 2026-03-30 SHOPP survey; natural gas and electricity from the March 2026 monthly series). Electricity is the US average (~$0.19/kWh); New England runs higher (~$0.28/kWh), which lifts the heat-pump bar. Kerosene (K-1) is modeled as #2 oil plus a typical refining premium; EIA runs no weekly K-1 retail survey.

Blend rules for outdoor tanks

80% #2 / 20% K-1: reliable to -10°F. Modest premium.
70/30: reliable to -20°F. Common in ME/VT outdoor tanks.
50/50: reliable to -30°F. Rare. Northern Maine only.
100% K-1: -40°F+. Rare and expensive outside of K-1-only appliances.

Cold-flow additive alternative

PourPoint depressant + anti-gel additives cost ~$0.05/gal effective and extend #2 to about 0°F. Cheaper than a K-1 blend in moderate-cold weeks. Less reliable below -5°F. Belt-and-suspenders: additive + 80/20 blend.

Tax

K-1 sold for heating is untaxed (same as dyed #2). K-1 sold at the pump for kerosene heaters is also untaxed. On-road kerosene (rare, jet-A adjacent) is taxed.

Cross-references

EIA SHOPP last reading: 2026-11-02NY Harbor ULSD spot refreshed: 2026-11-05EIA next release: 2026-11-12