Types of Heating Oil: What You Need to Know

Jul 16, 2025 - 11:10
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Types of Heating Oil: What You Need to Know

Heating oil is a widely used fuel for residential and commercial heating systems, especially in regions with cold winters. It fuels oil-fired furnaces and boilers to provide warmth during chilly months. While many people think of heating oil as a single product, it comes in several types, each with specific properties suited to different needs and climates. Understanding the different types of heating oil can help you make informed decisions about your heating system.


No. 2 Heating Oil The Most Common Type

No. 2 heating oil is the most popular choice for home heating. It is a distillate fuel oil, chemically similar to diesel fuel, and is designed to work efficiently in oil-fired furnaces and boilers. Known for its high energy content, No. 2 heating oil provides reliable and consistent heat.

One of the drawbacks of No. 2 oil is that it can thicken or gel in extremely cold temperatures, potentially clogging fuel lines. To avoid this, additives or blending with lighter fuels may be used in colder climates. This type of oil is usually stored in above-ground or underground tanks and delivered by fuel suppliers.


No. 1 Heating Oil (Kerosene) For Cold and Portable Use

No. 1 heating oil, commonly referred to as kerosene, is a lighter, more refined fuel than No. 2 oil. It has a lower viscosity and a lower freezing point, meaning it remains fluid even in very cold weather. Because of these properties, kerosene is often preferred in regions with harsh winters and in outdoor storage tanks.

Kerosene burns cleaner than No. 2 heating oil, producing fewer deposits and less soot, which helps reduce furnace maintenance. It is also commonly used in portable heaters, small furnaces, and mobile homes. However, kerosene typically costs more due to its additional refining process.


Bioheat Fuel The Eco-Friendly Alternative

Bioheat is a newer option that blends traditional heating oil with biodiesel, a renewable fuel made from vegetable oils, animal fats, or recycled cooking oil. Blends vary, commonly including 5% to 20% biodiesel mixed with No. 2 heating oil.

This blend burns cleaner, producing fewer greenhouse gases and particulate emissions than pure petroleum-based oils. Bioheat fuel is compatible with most existing heating oil systems and offers a way to reduce environmental impact without changing equipment. As awareness of climate change grows, Bioheat is gaining popularity among eco-conscious consumers.


Off-Road Diesel (Dyed Diesel) Industrial and Commercial Use

Off-road diesel, also known as dyed diesel because of its red dye, is chemically similar to No. 2 heating oil but is used primarily for agricultural, industrial, and commercial equipment like tractors, generators, and construction vehicles. It is taxed differently from on-road diesel fuel.

Though it shares similarities with heating oil, off-road diesel is not typically used for residential heating. However, some commercial heating systems may use it as a cost-effective option. Its important to comply with local regulations when using dyed diesel fuels.


Conclusion

The choice of heating oil depends on several factors, including climate, heating system type, storage conditions, cost, and environmental concerns. No. 2 heating oil is the most common and cost-effective choice for many homeowners, while No. 1 heating oil or kerosene suits extremely cold environments or portable applications. Bioheat provides a greener alternative for those interested in sustainability, and off-road diesel meets the needs of commercial and agricultural users.

By understanding the differences between these types of heating oil, you can make an informed decision that balances efficiency, cost, and environmental impactensuring your home or business stays warm and comfortable throughout the cold season.

lindaanneuk Linda Anne, a trailblazer in UK agricultural fuel oil, fuels more than just farms—she powers progress. With 15+ years in the energy sector, her sharp logistics sense and green innovation drive sustainable growth, making her a trusted name from Cornwall fields to Highland hills.