In October, the Department of Energy offered to lend up to 315,000 barrels from the Northeast Home Heating Oil Reserve. It is only the second emergency release in the reserve’s history, and one industry analyst called the volume very small.
The price of residential heating oil averaged $6.23 a gallon in the week of Oct. 26, up $2.64 from a year earlier.
The Energy Information Administration expects the average oil-heated home to spend about $2,115 from November through March, up 21% from the previous winter.
What you pay per gallon varies more than many customers realize, and so does how many gallons you burn.
1. Call at least three dealers
Dealers set their own prices, and the spread can be wide. In Massachusetts’ weekly state survey for Nov. 2, the cheapest tenth of dealers charged $5.68 a gallon or less, while the priciest tenth charged $6.68 or more.
That $1 gap works out to about $150 on a 150-gallon delivery. Ask each dealer for the per-gallon price, any delivery or service fee, and whether the price changes if you sign up for automatic delivery.
2. Order at least 100 gallons
Small top-offs can cost more per gallon. The Massachusetts survey notes that dealers may charge more for deliveries under 100 gallons, and it bases its averages on fills of 100 to 150 gallons or more.
If a small delivery is all the budget allows, ask what the surcharge is before you order so it does not show up as a surprise on the bill.
3. Ask about a cash discount
The same survey says its prices do not reflect discounts for paying cash, a hint that some dealers offer one. Ask before the truck arrives. On a 150-gallon delivery, every 10 cents off the gallon is $15 back in your pocket.
4. Read the contract before locking in a price
Dealers commonly sell several kinds of plans.
Massachusetts’ heating oil contracts guide lays out the differences: A fixed price sets the rate for a set number of gallons. It may require payment up front. A capped price guarantees a ceiling for a period of time, and a budget plan spreads the estimated cost of the season into monthly payments.
Locking in at current prices can protect you if they keep climbing, but it can leave you paying more than the street price if they fall.
The guide suggests asking whether the dealer has already bought the gallons it is promising, what happens to a capped price if the market drops below the cap, whether “while supplies last” language applies and whether there is a fee to cancel.
If spreading the cost is the goal, a budget system you will actually keep using makes those monthly payments easier to plan around.
5. Turn the thermostat down a degree or two
New York’s heating oil and propane guide estimates that each degree you lower the thermostat cuts fuel use by about 3%. At the EIA’s $2,115 estimate, that could be worth roughly $63 a degree over the season.
A lower setting holds better in a tight house. Weatherstripping and caulk come first, and an energy-efficient (low-e) storm window can be a cheaper fix for drafty windows than full replacement.
6. Get the burner serviced
The New York guide recommends an annual checkup to keep a heating system running efficiently. Full-service dealer contracts often include a yearly maintenance visit, according to the Massachusetts guide, so check whether you are already paying for one you have not scheduled.
7. Apply for heating help early
Energy assistance directors have warned that oil-heat bills could run about 50% higher over the 2026-2027 winter.
The federal Low Income Home Energy Assistance Program, known as LIHEAP, helps eligible households with heating costs, and each state runs its own version. New York raised its base HEAP benefit this season to $990 for households that heat with oil, kerosene or propane.
Income limits, benefit amounts and application windows vary by state. The National Council on Aging explains how to apply through your local agency.
Check the Wednesday numbers
The EIA posts new residential heating oil prices every Wednesday during the heating season, and Massachusetts publishes its own weekly survey with the market’s high and low ends. If a quote lands well above your state’s average, keep dialing.
Add a Comment