Oil or Propane Heat?

Tips for efficiency, safety and smart financial planning

By Andrea Busche

As much as we may despise the thought, another Northland winter is almost upon us. In addition to bitterly cold temps, winter also ushers in a few other matters –including extra costs and safety concerns – related to keeping our homes warm and cozy.

In our region, oil and propane are two fuel sources commonly used to heat our homes. Like any fuel source, they each offer pros and cons. But with a little advance planning, both can be safe, affordable ways to stay warm as the mercury drops.

Cost comparison

Ryan Gunderson is president of Superior Fuel Company, a fuel oil and propane provider doing business in our region since 2006. Gunderson shared that when it comes down to an “apples to apples” BTU comparison, both heat sources come out to be very similar in price.

A household’s average fuel con- sumption depends on the size of the home and efficiency of the heating system. Propane customers in our area typically use 900-1,000 gallons per year, priced at around $1.40 to $1.50 per gallon, as of this writing. And oil customers typically use between 400 and 600 gallons of oil, priced at about $2.60 to $2.70 per gallon.

A true cost comparison depends on your heating system.

“Efficiency comes down to the appliance, whether you have a boiler or a furnace,” Gunderson said. “If you have an inefficient system, you’ll pay more.”

This helpful tip applies to all fuel sources, not just propane and oil. The cleaner and more efficiently you can burn your fuel, the less you’ll use.

Payment strategies

A definite “pro” for using propane or oil is the ability to lock into a price protection plan. Gunderson shared that any reputable company will offer one.

“Look for a price protection plan that lasts the entire year,” he said. “If you have a guaranteed rate, the company can’t raise your rates in winter when demand is high and you need the fuel.”

Another way to smooth out the seasonal billing spikes is to request the monthly payment program. Gunderson estimates that roughly 75-85 percent of his customers’ annual fuel consumption occurs in four short months of the year, from the end of October through March. A monthly payment program allows you to spread out your heating costs yearround, rather than getting surprised with a giant bill for those four months. Participating in this kind of payment plan can also ease some of the financial strain that occurs for all of us around the holiday season.

Safety tips

When burning fuel to keep our living quarters toasty, it’s vitally important to keep safety in mind. Gunderson shared several safety tips for keeping your home safe when heating with propane or oil:

1. Don’t allow your tank to get too low. Poor weather conditions, including icy roads and snowstorms, can cause a delay in delivering more fuel to you.

2. If heating with propane, make sure the regulator device on your tank is kept clear of snow. This allows built up pressure to be released and exhaust to be vented properly.

3. Make sure to follow setback limits: If using propane, a tank larger than 120 gallons must be a minimum of 10 feet away from your home. Oil heat doesn’t require any such setbacks, but if your oil tank is outside, make sure you heat your home with the “No. 1 type” (rather than the No. 2 type) of fuel oil – it has a higher gelling point.

4. Don’t bury your fuel tank in snow – it can cause your system to slow down and lose efficiency.

5. Make sure your furnace or boiler’s exhaust and intake areas are clear of snow. A backed-up system can cause carbon monoxide to enter the home.

6. Always utilize a carbon monoxide detector.

One extra tip, related to the safety of your fuel delivery person, is to keep a path to your fuel tank easily accessible and clear of snow.

See you next spring

While there aren’t any ways to fastforward through winter, there are ways to make the season safer and more affordable for you and your family. Consider following these tips, and you’ll find that propane and fuel oil can be two comfortable, convenient ways to heat your home this season. Stay warm, and we’ll see you next spring!

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