Is heating oil cheaper than propane?

At current anchors, heating oil at ~$32.19/MMBtu effective beats propane at ~$35.84/MMBtu. The gap varies by season and region.

Does tank ownership matter?

Yes. Heating oil tanks are typically homeowner-owned. Propane tanks are often leased, locking you to the supplier. Owned propane tanks free you to shop.

Which delivers more energy per gallon?

Heating oil has ~138,500 BTU/gal vs propane's ~91,452 BTU/gal. Per-gallon, oil delivers ~52% more energy.

Heating oil vs propane cost

$/MMBtu, efficiency-adjusted. EIA

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%

Per-MMBtu math

Heating oil: $3.79/gal ÷ 138,500 BTU x 1,000,000 = $27.36/MMBtu raw. At 85% furnace efficiency = $32.19/MMBtu effective.
Propane: $2.95/gal ÷ 91,452 BTU x 1,000,000 = $32.26/MMBtu raw. At 90% furnace = $35.84/MMBtu effective.

Tank ownership

Heating oil tanks (275/330/550) are almost always homeowner-owned. You buy from any dealer. Propane tanks are typically leased, locking you to the supplier (so they can set the price). Owned propane tanks are possible but uncommon outside of large agricultural users.

Delivery cadence and minimum fill

Heating oil: 100 gal minimum, 4 to 8 fills per season. Propane: 200 gal minimum, 2 to 4 fills per season (larger tanks, less frequent). Oil wins on flexibility, propane wins on fewer trucks at your driveway.

When propane wins

You also need a stove, dryer, generator, or pool heater on propane (single-fuel home).
Local propane pricing is unusually competitive (rare in PADD1A).
You're rural enough that natural gas isn't an option and you prefer fewer deliveries.

Cross-references

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