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

K-1 kerosene at ~$4.49/gal runs $0.70/gal above #2 heating oil at $3.79/gal. The premium is for cold-flow capability and additional refining.

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

The bar chart

Heating oil (#2)$32.19/MMBtu eff @ 85%

Propane$35.84/MMBtu eff @ 90%

Natural gas$15.43/MMBtu eff @ 92%

Kerosene (K-1)$39.13/MMBtu eff @ 85%

Heat pump (ccASHP)$23.03/MMBtu eff @ 280%

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: 2026-03-30NYMEX HO settled: 2026-07-13EIA next release: 2026-10-05