Heating Oil and Pellet Fuel Cost Comparison

Oil Heat Cost per Heating Season VS Pellet Fuel (Based on data from 2022/23 Heating Season)

Based on the data from 2022/23’s heating season, choosing pellets over oil would save you nearly $3,000!


Daily Fuel Cost Comparison*
(Average Cost per Unit) x (Number of Units per Season) / 182

Oil = $24/day
Pellets = $7.69/day 

Cost Comparison by Heat Output*
(Fuel Cost per Unit) / (Heat Content per Unit) x 1,000,000

Oil = $35 per million BTUs
Pellets = $20 per million BTUs


*All calculations are based on the following:

  • Oil has¬†138,500 BTUs per gallon¬†at an average of¬†$4.80/gallon¬†with an average use of¬†910 gallons¬†in a heating season
  • Pellets have¬†17,200,000 BTUs per ton¬†at an average of¬†$350/ton¬†with an average use of¬†4 tons¬†in a heating season
  • There are 182 days in a heating season


Source: U.S. Energy Information Administration

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