The per gallon comparison is the trap. Propane looks dramatically cheaper per gallon and is not, because a gallon of propane holds around 91,500 Btu against about 138,500 for a gallon of No. 2. Correct for that and the ranking often reverses.
| Fuel | Price | Btu per gallon | Per MMBtu | Per MMBtu at 85% burner |
|---|---|---|---|---|
| No. 2 heating oil | $5.54 a gallon | 138,490 | $39.97 | $47.02 |
| Propane | $2.67 a gallon | 91,452 | $29.24 | $34.40 |
EIA State Heating Oil and Propane Program / W_EPD2F_PRS_NUS_DPG / published 30 March 2026 / checked 23 September 2026 / lag 177 daysthree to six months oldtier A
Last in-season print. The survey pauses after March and resumes in October, so this figure ages all summer.
EIA State Heating Oil and Propane Program / W_EPLLPA_PRS_NUS_DPG / published 30 March 2026 / checked 23 September 2026 / lag 177 daysthree to six months oldtier A
Residential propane, same survey and same off-season pause as heating oil.
What the numbers say right now
On these prints propane is $10.73 per million Btu cheaper than oil, which is 26.8% below the oil figure. That is a real gap and it is not a permanent state of affairs. Propane and distillate come off different parts of the barrel and they have traded either side of each other repeatedly.
What switching costs
- A new boiler or furnace, or a conversion where the appliance supports it. Not every unit does.
- A propane tank, leased or bought, and a set. A leased tank usually ties you to that supplier for refills, which is a pricing consequence not just a logistics one.
- Line work from tank to appliance, and permits where required.
- Removal or abandonment of the oil tank, which for a buried tank is a significant job with its own environmental process.
None of that is recovered by a per million Btu gap of a few dollars in one season. Switching fuels is a capital decision that should be made when the appliance is at the end of its life, not when the spread looks favorable in one week.
The steadiness question
Neither fuel has been steady. Both track crude and both spike in supply events. The relevant difference is that a leased propane tank reduces your ability to shop, while an owned oil tank leaves every dealer in the area available to you. That structural difference outlasts any price gap.
Primary sources for this page
- EIA State Heating Oil and Propane ProgramWeekly residential delivered price of No. 2 heating oil, national and by state. Collected October to March. The survey pauses after the last March print and resumes in October, which is why every federal page shows March data all summer.
- EIA residential propane weekly priceSame survey, same off-season pause, used for the fuel switch comparisons.
- Alternative Fuels Data Center, biodiesel blendsEnergy content and blend handling guidance for B5 through B100.
- EIA Residential Energy Consumption SurveyHousehold fuel shares and consumption. Used for context, never for a price.