Home heating 6 min read · updated Nov 9, 2026
How to pay less for heating oil and propane this winter
Pre-buy, capped and market-price plans compared, plus the tune-ups, timing and assistance programs that cut the bill.
EIA U.S. residential averages, Nov 9, 2026: heating oil $5.915, propane $2.826 a gallon.
Choose the right price plan
- Market price (will-call or automatic delivery): you pay the dealer’s price on the delivery day. No commitment; you carry all the price risk.
- Pre-buy (fixed price): you lock a price per gallon for a set number of gallons, usually paid up front in summer or early fall. It protects against spikes but you pay that price even if the market falls.
- Capped price: a ceiling with the option to pay less if prices drop, usually for an extra per-gallon fee.
- Budget plans spread the cost into equal monthly payments; they smooth cash flow but do not change the price.
Read any contract for the gallons covered, what happens if you use fewer, delivery and minimum fees, and whether the price includes taxes. Our guide to fixed vs. index pricing goes deeper.
Shop, and time your orders
- Call several dealers; prices for the same fuel on the same day can vary widely. EIA’s state averages show whether a quote is in line.
- Larger deliveries usually cost less per gallon. Ordering before you are nearly empty avoids emergency-delivery charges.
- If you lease a propane tank, the dealer that owns it is usually the only one allowed to fill it. Owning the tank lets you switch suppliers.
Use less
- Have the boiler or furnace serviced every year; a clean, tuned burner uses less fuel.
- Turn the thermostat down when you are asleep or away. The U.S. Department of Energy estimates savings of up to 10% a year from setting it back 7–10°F for eight hours a day.
- Seal air leaks and add attic insulation before you consider new equipment.
Get help if you need it
The federal Low Income Home Energy Assistance Program (LIHEAP) helps eligible households with heating bills; apply through your state or local LIHEAP office. Many fuel dealers and utilities also run hardship programs.