Heating oil vs. propane is one of the most common questions we hear from homeowners in West Virginia, Pennsylvania and Maryland, especially when an old furnace or boiler is nearing the end of its life. Both fuels heat homes reliably through long mountain winters, and Woodford delivers both, so we have no reason to push you one way. The right choice comes down to the equipment you already have, how you use energy in the house, and what you want to spend upfront versus over the years.
Heating oil vs. propane: the short answer
If you already have a working oil furnace or boiler in good condition, staying with heating oil is usually the most economical move. If you are replacing equipment anyway, building new, or want one fuel that also runs your water heater, range, dryer, fireplace or standby generator, propane is often the better fit. The details that decide it:
- Heat per gallon. According to the U.S. Energy Information Administration, a gallon of heating oil holds about 138,500 Btu, while a gallon of propane holds about 91,452 Btu. You burn more gallons of propane to get the same heat.
- Equipment efficiency. Modern condensing propane furnaces and boilers can turn more of their fuel into usable heat than typical oil equipment, which narrows the gap.
- Versatility. Heating oil heats your home and sometimes your water. Propane can power almost every appliance in the house.
- Storage. Oil tanks are usually owned by the homeowner and sit in a basement or beside the house. Propane tanks sit outside or underground and are often leased from the supplier.
Heating oil vs. propane side by side
| Heating oil (No. 2 fuel oil) | Propane | |
|---|---|---|
| Energy per gallon | About 138,500 Btu | About 91,452 Btu |
| Typical uses | Furnaces, boilers, some water heaters | Furnaces, boilers, water heaters, ranges, dryers, fireplaces, generators |
| Tank location | Indoor or outdoor above-ground tank | Outdoor above-ground or underground tank |
| Tank ownership | Usually owned by the homeowner | Often leased from the supplier |
| Shelf life in the tank | Long, with proper additives and tank care | Does not degrade in storage |
| Renewable option | Bioheat blends in select areas | Standard propane |
Which costs less to heat a home?
Price per gallon alone is misleading because the two fuels carry different amounts of energy. A fair comparison looks at the cost of the same amount of heat. Since a gallon of propane has roughly 66% of the energy in a gallon of heating oil, propane has to cost about two thirds of the heating oil price per gallon to break even, before you account for equipment efficiency.
Efficiency then shifts the math. According to ENERGY STAR, certified gas furnaces in northern climates are up to 18% more efficient than baseline models, while certified oil furnaces are up to 4% more efficient than theirs. Condensing propane equipment uses that same high-efficiency design, so a new propane system can close much of the energy gap. An older, poorly tuned system of either type will waste fuel no matter what you burn.
To compare your own costs:
- Divide each fuel’s price per gallon by its Btu per gallon, then multiply by 1,000,000 to get the cost per million Btu.
- Divide that figure by your equipment’s efficiency (for example, 0.85 for an 85% AFUE furnace) to get the cost of delivered heat.
- Factor in the extras. Include tank rental or purchase, annual service and any new equipment you would need to switch.
Fuel prices move with crude oil, natural gas liquids and seasonal demand, so run the numbers with current local quotes. Our team can give you a quote for either fuel.
When heating oil makes more sense
- Your oil system is in good shape. Replacing a working furnace or boiler just to change fuels rarely pays back quickly.
- You want the most heat per gallon. Oil’s higher energy content means fewer deliveries for the same heating load.
- You prefer to own your tank. With an owned tank, you are not tied to a tank lease.
- You want a renewable blend. Bioheat, a blend of heating oil and biodiesel, works in most existing oil equipment and is available in select Woodford locations.
Our home heating oil guide covers ordering, tank storage and winter planning in more detail. If you are wondering whether diesel can stand in for heating oil in a pinch, see heating oil vs. diesel explained.
When propane makes more sense
- You are replacing equipment or building new. High-efficiency propane furnaces and boilers make the most of every gallon.
- You want one fuel for the whole house. Propane can run your water heater, range, dryer, fireplace and backup generator.
- You want the tank outside. Propane tanks sit outdoors or underground, which frees up basement space.
- You want storage that will not go bad. Propane does not degrade, so fuel delivered in spring is just as good in January.
Safety and upkeep
Both fuels have long safety records when equipment is installed and serviced properly. Heating oil is hard to ignite as a liquid at normal temperatures, and leaks are usually visible and easy to smell. Propane has an odorant added so you can detect a leak, and propane tanks are filled to only 80% of capacity to leave room for expansion. Whichever you choose, schedule annual service on your furnace or boiler, keep vents clear and install carbon monoxide alarms. Propane homeowners can review our propane tank safety checklist before winter.
Thinking about switching to propane?
If you are moving from oil to propane, or switching propane suppliers, Woodford makes it simple. Residential propane customers get straightforward pricing with zero hidden fees, plus:
- Free tank rental (with approved credit and a minimum annual commitment)
- Free tank installation and a free initial safety inspection of your existing equipment
- Free account switchover from your current supplier
- Free tank monitoring and a mobile app (with a minimum annual commitment)
- Automatic delivery and 24/7 emergency service
Not sure how big a tank you need? Our propane tank size guide lists dimensions and typical uses for each size.
Frequently asked questions
Is propane or oil heat cheaper?
It depends on current local prices and the efficiency of your equipment. Heating oil has more energy per gallon, so propane needs to cost roughly two thirds of the oil price per gallon to match it, before efficiency. A high-efficiency propane system can narrow or close that gap.
Is oil heat warmer than propane?
Both fuels heat a home comfortably. Oil burns at a higher Btu content per gallon, but the warmth you feel depends on your furnace or boiler size, ductwork and insulation, not on the fuel alone.
Can I convert my oil furnace to propane?
Most homes switching from oil to propane replace the furnace or boiler with propane equipment, since oil burners are not designed to burn gas. A heating contractor can tell you what your system needs, and Woodford can handle the propane tank and delivery side.
Does Woodford deliver both heating oil and propane?
Yes. Woodford delivers No. 2 and No. 1 fuel oil, kerosene, Bioheat in select locations, and propane, depending on your area. Check our service area to see what is available near you.
Get a heating fuel quote from Woodford
Woodford is a family-owned, third-generation fuel distributor that has kept homes warm since 1947, with local drivers who know your roads. Whether you heat with heating oil or propane, we will help you plan for winter. Request a heating fuel quote, open an account, or call us at 1-800-927-3688.
