Propane versus Fuel Oil

[UpStateNY]

I am going to compare my current locked in Propane per gallon price of $1.759 versus #2 Fuel Oil at current price of $3.20.

My assumptions are:

1. new propane boiler uses 800 gallons a year and is 98% efficient.
2. old fuel oil boiler was 85% efficient and therefore would have used 603 gallons fuel oil after doing the BTU/gallon math

Fuel Oil cost is 603 gallons times $3.20 = $1,931.14
Propane cost is 800 gallons times $1.759 = $1,407.20
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Savings using Propane this year $523.94

 

[peakbagger]

The normal issue with propane is its not stored in volume like heating oil. If there is a sudden demand there is less storage in most regions and its harder to move the bulk propane around than it is heating oil. Worst case is diesel tankers can haul heating oil and if supply is really pinched, a trip to a local gas station with diesel pumps will get folks by. For folks with tanks that can hold a years supply of either fuel its not an issue about seasonal shortages but folks with small propane tanks get hit with those seasonal price hikes. Same can happen in cold climates and old leaky houses with oil but 275 gallons of oil goes a lot longer than a 100 gallon tank of propane.

Long ago I put in two heating oil tanks so I could fill up once per year. It was great idea until I put my wood boiler in and really haven't burnt any fuel for 6 years