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The cost of heating oil fluctuates rapidly based on supply and demand, but the average price is between $4.00 and $4.50 per gallon, which means filling a standard 275-gallon tank would cost between $1,100 and $1,240. Much like automotive gasoline, the price of home heating oil changes constantly, so the only way to get an accurate and current price per gallon is to contact a heating oil delivery company. Some companies also offer contracts with a set price that should be an average cost over the contract term.
Heating oil isn’t something you want delivered by a company that isn’t punctual and proactive about refilling your oil tank, so you should start your search by looking at online reviews for companies in your area. Look for a history of slow deliveries or missed deliveries, which could leave you without heat in the dead of winter. You should also check the Better Business Bureau’s website to see if the company has a history of complaints. Finally, contact each company to ask about pricing and contracts.
The best way to save money on home heating oil is to get large deliveries in the summer months when the prices are lowest. However, this method will only work if you have a separate storage tank or an unusually large primary tank. You can sometimes save money by opting into a delivery contract, as some companies offer set prices that they believe will sit at the average cost over the contract term. If the price of oil rises, you could enjoy some savings, but keep in mind that you might also pay a bit more if the price decreases.
The best time to buy home heating oil is in the summer when the demand is lowest, as the prices are usually lower. However, waiting until the summer to buy is often unavoidable unless you install a separate storage tank. If you have the space for a second tank, you can expect to pay between $1,000 and $4,000 for the oil tank replacement or installation, depending on the capacity and location. You could quickly recuperate these costs, though, by stocking up on heating oil in the summer and avoiding deliveries in the winter when prices are highest.
Most homes use around five gallons of oil per day for heating, averaged over the entire year, meaning 250 gallons—the actual storage capacity of a standard 275-gallon tank—should last around 50 days. Heating oil consumption is higher in the winter than in the summer, so you might find that 250 gallons last 30 days in the winter but 90 to 120 days in the summer months when it’s only used to heat water. When you sign up for oil delivery, most companies will monitor your consumption and automatically make a delivery when you’re expected to be low.