Is Oil, Propane, Or Natural Gas Better? | Black Bear Fuel (2024)

FAQs

Which is cheaper to heat with oil or propane? ›

As a general rule of thumb, propane is cheaper per BTU than heating oil. However, seasonal factors and location also play a role.

Gas furnaces (both natural gas and propane) convert a higher proportion of their fuel supply into heat than oil burners do. Comparing brand new furnaces, you should expect to get a fuel efficiency of between 89 and 98 percent for propane and between 80 and 90 percent for heating oil.

Natural gas tends to be the most affordable of these options, with the federal Energy Information Administration (EIA) reporting that the average seasonal cost of natural gas heating is currently about 70 percent less per household than for households with oil heat.

Mathematically, heating oil contains more heat per BTUs than natural gas (and than most other fuels available on the market). Therefore, heating oil outputs more heat, making it the more efficient option of the two.

Generally, propane costs a little less than heating oil per gallon.

Natural gas is likely to prove the cheapest way to heat a home if you have this heating option available to you where you live. Although prices have risen, natural gas is the least costly form of space heating. This is followed by electricity, propane, and heating oil, from the next cheapest to the most expensive.

Most of the time, natural gas is the most efficient means of heating the home, which is why most American households use it. Household Heating Systems: Although several different types of fuels are available to heat our homes, nearly half of us use natural gas.

Based on running costs alone, reverse-cycle air conditioning is by far the cheapest way to heat your home: our estimates show that a reverse-cycle air conditioner will cost only a little more to run for the entire year than an electric heater will cost to run just for three months over winter.

As a heating and cooling expert, we strongly recommend homeowners consider making the switch from oil to gas, simply for the sake of better efficiency and saving money in the long run. Gas is the cleanest burning fossil fuel, leaving no unpleasant ash or odors.

Should I Buy a Home with Heating Oil? Yes. In summary, oil heat is a safe, cost-effective fuel for heating your home. If you are choosing between propane or heating oil, heating oil wins out all day long.

Should I switch from oil to propane? ›

Long-term savings on utility bills and maintenance

Because propane is more efficient than oil, you're looking at 30 to 40% savings on fuel. Clean-burning propane furnaces require substantially less maintenance annually than an oil furnace because there is no accumulation of soot or carbon inside of a propane furnace.

It is predicted that we will run out of fossil fuels in this century. Oil can last up to 50 years, natural gas up to 53 years, and coal up to 114 years. Yet, renewable energy is not popular enough, so emptying our reserves can speed up.

That means, propane is more than twice the energy of natural gas. While the cost per gallon is less for natural gas, you'll use more of it to heat the same appliances. If you get two times the heat from propane, naturally, you'll use less fuel. In this combined round, propane wins for efficiency and overall cost.

It costs anywhere from $600 to $1,600 to fill a 500-gallon propane tank. Keep in mind that tanks can only hold up to 80% capacity due to the propane expanding when temperatures increase.

Propane consumption should experience a relatively even split among several markets between 2022 and 2027. Propane for residential, commercial and transportation use should each have a 25% share of the market, with all other sectors combining for the remaining 25%.

Increasing Demand for Propane As an Automotive and Transportation Fuel. Consumer desire for cleaner fuels will fuel increased demand for propane through 2023. Demand for propane as an alternative automotive and transportation fuel is particularly strong in Asia-Pacific countries.

Price of propane—The propane supply situation in 2022–2023. The outlook here isn't great: It's expected that propane prices will continue to rise in 2023. We're seeing propane costs going up for residential propane users in 2022 and 2023, with an estimated 5% increase expected in the next year.

In total, you might expect to spend $3500 – $8000 to switch from an oil or electric forced air furnace to a high-efficiency propane or natural gas system.

In most cases, prices are lower in the warmer months and higher during the winter, but prices can even fluctuate throughout the summer.

In the end, we find that electric heating is expensive, more than gas or wood, but a little cheaper than oil. As heating gets more expensive you might find it helpful to take a look at our article on supplemental heat sources.

Is it cheaper to use gas or propane? ›

Propane is more expensive than natural gas but natural gas burns much faster than propane. In fact, it burns at a rate of two to one. This means that to heat two spaces of the same size, you'll use twice as much natural gas than propane.

A wood-burning stove can cost around a third of the price of electric central heating to run, while it's about 13% cheaper than gas central heating, under the current energy price cap, according to the Stove Industry Alliance (SIA).

The cheapest way to heat your home is still gas central heating, even with the big price rises over the past year. But for many of us, the only option is to heat with electrical power and there are a wide range of options that are efficient and cost-effective.

What is the cheapest way to heat a room? There are many cheap electric ways to heat a room, with infrared heating likely being the most inexpensive. However, gas central heating is still the most affordable way to heat a room.

As a general rule, heating your home with a natural gas furnace is the cheapest way to keep warm through the winter months. Electricity is usually significantly more expensive than gas, so even the most efficient heaters will be a bigger drain on your pocketbook than a traditional furnace.

In most cases, heat pumps are the most efficient way to heat your older home. They work by transferring heat from outside your home to the inside of your home and they also double as an air conditioning system in the warmer months—a win-win.

Layering clothing and using blankets will be one of the easiest ways to ensure you keep warm with no power. Make sure to remember your feet, hands and head as those areas can lose heat quickly! Dressing gowns will become your new best friend.

2. Natural Gas and Crude Oil Prices. Because propane is a byproduct of natural gas and crude oil refining, natural gas and crude oil prices impact propane costs. For example, when an incident happens that impacts crude oil production, such as the recent demonstrations in Kazakhstan, propane prices may rise.

Although prices have risen, natural gas is the least costly form of space heating. This is followed by electricity, propane, and heating oil, from the next cheapest to the most expensive. It also pays to consider eco-friendly home improvements that make home eco-heating more efficient, too.

Switching off the radiators in empty spaces is definitely the cheapest way to heat your home this winter. And you might even find that an oil-filled electric radiator is cheaper to run than your boiler.

How much does it cost to keep an electric blanket on all night? ›

Is it expensive to use an electric blanket? Based on the above example, running an electric blanket will cost you around 23p a night (based on 8 hours of use).

That means, propane is more than twice the energy of natural gas. While the cost per gallon is less for natural gas, you'll use more of it to heat the same appliances. If you get two times the heat from propane, naturally, you'll use less fuel. In this combined round, propane wins for efficiency and overall cost.

A 500-gallon tank holds 400 gallons of propane and can last several months, ranging between 2 to 14 months. On average, homeowners can expect that the tank will last around 5 months with regular use of appliances.

The fact that approximately 50% of the U.S. population now resides in a state with comprehensive carbon emissions regulations or pending legislation may also make propane a more attractive energy source. By some estimates, the global propane market could reach 212.8 million tons by 2027.

Price of Propane

Prices peaked at $1.491 per gallon in late 2021 before dropping to about $1.123 per gallon in early 2022. The propane price forecast for 2023 sees prices increasing by approximately 5%, with the average household spending $1,668 on propane.