Heating Oil rose to 2.35 USD/Gal on December 2, 2025, up 0.21% from the previous day. Over the past month, Heating Oil's price has fallen 2.25%, but it is still 6.31% higher than a year ago, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Heating oil - values, historical data, forecasts and news - updated on December of 2025.

Heating oil price in the United States has peaked in winter 2022/23 at 4.31 U.S. dollars per gallon and has decreased ever since. Heating oil is a liquid petroleum product that is, among other things, used in residential buildings as a fuel oil in furnaces or boilers. Chemically, most heating oils are similar to motor diesel fuels and are often sold interchangeably. Forecast heating price in the U.S. The average price of heating oil in the United States in the winter of 2024/25 is expected to reach 3.44 U.S. dollars per gallon. Energy prices are projected to see a decrease this winter, because of increased production of heating fuels. The number of heating degree days, which are the days in which the average temperature is below 18 degrees Celsius (65 degrees Fahrenheit), also helps quantify the energy demand required to heat a building. What determines heating oil price? Generally, heating oil prices are collected during the heating season between October and March. In the U.S., the greatest determining factor for heating oil prices is the WTI crude oil price. Consumers can lower heating oil bills by considering when they purchase, reducing consumption, and through government assistance programs.

Find in-season and off-season pricing for heating fuels, including heating oil, propane and wood price surveys by DOER. Links to electric and natural gas rates also available here.

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Get the latest insights on price movement and trend analysis of Fuel Oil in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

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Snapshot img { margin: 10px !important; } The fuel oil market size will decrease by USD 84.77 billion during 2020-2024. This report provides a detailed analysis of the market by application (marine, industrial, and others) and geography (APAC, Europe, MEA, North America, and South America). Also, the report analyzes the market’s competitive landscape and offers information on several market vendors, including BP Plc, Chevron Corp., Exxon Mobil Corp., JXTG Holdings Inc., PJSC LUKOIL, PT Pertamina(Persero), Qatar Petroleum, Reliance Industries Ltd., Royal Dutch Shell Plc, and SK Innovation Co. Ltd.

Market Overview

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Market Competitive Analysis

The fuel oil market is fragmented with numerous vendors that produce and supply fuel oil to customers. Vendors need to make high capital investments to remain competitive in the market. BP Plc, Chevron Corp., and Exxon Mobil Corp. are some of the major market participants. Although the rise in world energy demand will offer immense growth opportunities, the fluctuations in crude oil prices will challenge the growth of the market participants. To make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

To help clients improve their market position, this fuel oil market forecast report provides a detailed analysis of the market leaders and offers information on the competencies and capacities of these companies. The report also covers details on the market’s competitive landscape and offers information on the products offered by various companies. Moreover, this fuel oil market analysis report also provides information on the upcoming trends and challenges that will influence market growth. This will help companies create strategies to make the most of future growth opportunities.

This report provides information on the production, sustainability, and prospects of several leading companies, including:

BP Plc
Chevron Corp.
Exxon Mobil Corp.
JXTG Holdings Inc.
PJSC LUKOIL
PT Pertamina(Persero)
Qatar Petroleum
Reliance Industries Ltd.
Royal Dutch Shell Plc
SK Innovation Co. Ltd.

Fuel Oil Market: Segmentation by Application

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The primary requirement of any marine engine is to propel the ship or generate onsite power by using the energy obtained from burning fuel oil. The mega marine engines of ships burn tons of fuel every day to propel the massively loaded ships. The rise in demand for bunker fuel oil due to the growing seaborne trade and growing naval activities will drive the demand for fuel oil for marine.

However, market growth in this segment will be slower than the growth of the market in the industrial and other segments. This report provides an accurate prediction of the contribution of all the segments to the growth of the fuel oil market size.

Fuel Oil Market: Segmentation by Geography

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North America will offer several growth opportunities to market vendors during the forecast period. The strong consumption of space heating fuel, growing refinery capacity, and proliferating marine trade will significantly influence fuel oil market growth in this region over the forecast period. The US is a key market for fuel oil in North America.

Fuel Oil Market: Key Drivers and Trends

The fluctuation in oil prices has affected the business of several oil and gas companies and refinancing companies. As a result, crude oil processing projects generate less revenue and many oil and gas companies suspend or postpone their exploration and production projects. Fluctuations in crude oil prices also impact investments in E&P and refining projects. Such factors will result in a slowdown in the growth of the global fuel oil market during the forecast period.

The adoption of blockchain in the oil and gas industry helps in overcoming several issues including the complexity of logistics, high fuel prices, and environmental pollution. Blockchain platforms facilitate secure and faster transactions between the entities and maintain transparency. Blockchain also helps in reducing cash cycle time and intermediary costs. These benefits will result in an increase in the adoption of blockchain to enhance the overall operational efficiency of the existing refineries. As a result of such factors, the fuel oil market will register a CAGR of (13)% during the forecast period.

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Fuel Oil Market: Key Highlights of the Report for 2020-2024

CAGR of the market during the forecast period 2020-2024
Detailed information on factors that will drive fuel oil market growth during the next five years
Precise estimation of the f

Monthly average retail prices for gasoline and fuel oil for Canada, selected provincial cities, Whitehorse and Yellowknife. Prices are presented for the current month and previous four months. Includes fuel type and the price in cents per litre.

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Graph and download economic data for No. 2 Heating Oil Prices: New York Harbor (WHOILNYH) from 1986-06-06 to 2025-10-31 about new york harbor, heating, New York, oil, commodities, and USA.

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The heating fuels market is experiencing significant growth, driven by factors such as increasing urbanization, rising disposable incomes in developing economies, and the persistent demand for reliable and affordable heating solutions. The market size in 2025 is estimated at $50 billion, reflecting a Compound Annual Growth Rate (CAGR) of approximately 5% over the past few years. This robust growth is further propelled by advancements in heating technology, leading to more efficient and environmentally friendly options. However, fluctuating energy prices and increasing government regulations aimed at reducing carbon emissions pose challenges to the market's continued expansion. The market is segmented by fuel type (e.g., natural gas, propane, heating oil), end-user (residential, commercial, industrial), and geographical region. Key players like Moyer, Bourne's Energy, Irving Oil, Wilco, CPS Fuels, Corrib Oil, Jones Oil, and Sauder Fuel are actively competing, focusing on strategies such as mergers and acquisitions, technological innovation, and geographical expansion to maintain market share. The forecast period of 2025-2033 projects continued growth, albeit at a potentially slightly moderated pace due to increasing competition and the adoption of alternative heating technologies like geothermal and heat pumps. The residential segment is expected to remain the largest contributor, followed by commercial and industrial applications. Regional variations will likely persist, with North America and Europe holding significant market shares, influenced by existing infrastructure and climate conditions. The ongoing focus on sustainability and energy efficiency will reshape the market landscape, potentially favoring providers offering cleaner and more sustainable heating solutions. Companies are likely to increasingly invest in research and development to produce more efficient and environmentally friendly heating fuels and technologies. This competitive landscape demands agility and innovation to thrive in this evolving market.

Fuel Oil Market size was valued at USD 189.66 Billion in 2024 and is projected to reach USD 271.99 Billion by 2031, growing at a CAGR of 4.61% from 2024 to 2031.

The Fuel Oil Market is driven by several factors, including its widespread use in various industrial applications such as power generation, marine transportation, and industrial heating. In regions with colder climates, fuel oil remains a significant source of heating for residential and commercial buildings. Additionally, the availability and relatively lower cost of fuel oil compared to other fuels contribute to its continued use in certain sectors. However, the market faces challenges from the increasing adoption of cleaner energy sources, such as natural gas and renewable energy, and stringent environmental regulations aimed at reducing emissions.

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The Heavy Fuel Oil Market Report is Segmented by Product Type (High Sulphur Fuel Oil, Low Sulphur Fuel Oil, Very Low Sulphur Fuel Oil, Intermediate Fuel Oil, and Residual Fuel Oil), Application (Marine, Power Generation, Industrial Heating, and Refinery and Petrochemical Feedstock), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa).

Fuel dealers have exhibited revenue growth as sales have remained relatively stable and oil and natural gas prices have fluctuated favorably. The pandemic disrupted demand for fuel from commercial and industrial operations as they shuttered or operated at reduced capacity. Oil prices plummeted amid the suspension of most travel and revenue plunged in 2020. Oil consumption from consumers quarantined at home helped stave off more severe losses, but this boon was dampened as most states were getting warmer through the height of stay-at-home ordinances. The Russia-Ukraine war caused oil prices to surge since early in 2022, but revenue has begun to normalize as production catches up. Since 2023, crude oil prices have steadily dipped as supply and demand imbalances improve. Revenue for fuel dealers is expected to climb at a CAGR of 6.7% to $49.3 billion through the end of 2025, including growth of 0.9% in 2025 alone. The magnitude of this growth is amplified by the fact that revenue plummeted in 2020, causing revenue to begin the period below traditional levels. Rising fuel prices raise dealers' purchasing costs. The short-term inflexibility of demand for heating oil and propane allows dealers to pass most of these increases on to downstream customers through price hikes that also lift revenue. Dealers endure external competition from natural gas and electric heating companies, though, so prices are often under pressure to remain low enough to encourage oil-based heating. Fuel dealers can't pass on all their heightened costs and profit compresses when oil prices swell. Moving forward, volatility in oil prices will pressure fuel dealers. Sales of fuel will remain inflexible since all buildings fitted with propane and heating oil systems will continue to rely on dealers, but the industry is fighting to maintain its customer base as more and more buildings are refitted with natural gas heating units. Natural gas extraction has climbed, causing prices to drop after they exploded in 2022. Volatile crude prices will exacerbate this trend since consumers are incentivized to switch heating systems if input prices swell. Revenue is expected to slump at a CAGR of 0.1% to $49.0 billion through the end of 2030.

Heating Oil Market Outlook

According to our latest research, the global heating oil market size reached USD 30.6 billion in 2024, demonstrating steady demand across both developed and emerging economies. The market is expected to grow at a CAGR of 3.4% from 2025 to 2033, reaching a projected value of USD 41.6 billion by 2033. Key growth factors include the ongoing modernization of heating systems, rising demand for efficient heating solutions in colder regions, and the gradual shift toward bio-based and low-sulfur alternatives. As per our comprehensive analysis, the heating oil market is poised for moderate yet stable expansion, driven by evolving regulatory frameworks and technological advancements in fuel efficiency.

One of the primary drivers propelling the heating oil market is the persistent need for reliable and efficient heating solutions in regions with harsh winters, particularly in North America and Europe. Residential and commercial buildings in these areas rely heavily on heating oil due to its high energy content and cost-effectiveness compared to other fuels. Furthermore, ongoing investments in infrastructure upgrades and retrofitting of older heating systems have contributed to sustained market demand. As governments implement stricter energy efficiency standards, there is a marked trend toward the adoption of advanced boilers and burners that maximize heating oil utilization, thereby enhancing overall system performance and reducing emissions.

Another significant growth factor is the increasing adoption of bio heating oil and low-sulfur variants, which address both environmental concerns and regulatory requirements. The transition toward cleaner and renewable energy sources is accelerating, supported by government incentives and heightened consumer awareness regarding carbon footprints. Bio heating oil, derived from renewable sources such as vegetable oils and animal fats, is gaining popularity as a sustainable alternative to traditional petroleum-based heating oils. This shift is not only helping end-users comply with environmental regulations but also providing new opportunities for market players to diversify their product portfolios and capture emerging market segments.

Technological advancements in heating oil storage, distribution, and combustion systems further bolster market growth. Innovations such as smart thermostats, remote monitoring, and automated fuel delivery services are enhancing user convenience and operational efficiency. Moreover, the integration of digital technologies in supply chain management is optimizing inventory levels and reducing delivery lead times, resulting in cost savings for both suppliers and consumers. These technological improvements, coupled with ongoing research and development efforts, are expected to drive market expansion and foster greater adoption of heating oil across various end-user segments.

From a regional perspective, North America and Europe collectively account for the largest share of the heating oil market, owing to their well-established heating infrastructure and cold climate conditions. In contrast, the Asia Pacific region is witnessing gradual market penetration, primarily driven by rural electrification programs and the replacement of traditional biomass fuels with more efficient heating oil solutions. Latin America and the Middle East & Africa represent smaller but steadily growing markets, as rising urbanization and industrialization spur demand for reliable heating options. Regional differences in climate, energy policies, and consumer preferences play a crucial role in shaping market dynamics and competitive strategies.

Type Analysis

The heating oil market is segmented by type into kerosene, gas oil, bio heating oil, and others, each catering to distinct applications and regulatory requirements. Kerosene has traditionally been a preferred choice for residential heating due to its high energy density and clean-burning properties. Its widespread availability and compatibility with existing heating systems make it a staple in many cold-climate regions. However, concerns over emissions and volatility in crude oil prices have led to fluctuating demand, prompting end-users to explore alternative options such as gas oil and bio heating oil. Despite these challenges, kerosene maintains a significant market share, particularly in rural and remote areas where infrastructure for natural gas or electricity is limited.

Discover the latest insights into the heating oil market: Explore market size, growth trends, key players (Tevis Energy, Certas Energy, etc.), and regional analysis for 2025-2033. Understand the challenges and opportunities shaping this evolving industry.

The global heating oil market, encompassing various fuel types like gas oil, kerosene, and others, for both household and industrial applications, is poised for significant growth. While precise market size figures for 2025 aren't provided, a reasonable estimate can be derived by extrapolating from available data and considering industry trends. Assuming a consistent Compound Annual Growth Rate (CAGR) and acknowledging fluctuating energy prices and evolving environmental regulations, the market is likely valued in the billions, rather than millions. The market's growth is primarily fueled by increasing energy demand in both residential and commercial sectors, particularly in regions with colder climates. Strong economic growth in developing nations, coupled with rising urbanization and expanding industrial activities, further contribute to this expansion. However, the market faces considerable restraints. Stringent environmental regulations aimed at reducing carbon emissions, the push for renewable energy sources, and concerns about fuel price volatility present significant challenges. The shift towards cleaner energy alternatives, such as heat pumps and district heating systems, is also expected to impact the market share of traditional heating oils in the long term. Nevertheless, the continued reliance on heating oil in specific regions, coupled with the development of more efficient and cleaner burning heating oil technologies, offers potential for continued, albeit potentially moderated, growth within specific market segments. Segmentation by application (household versus industrial) and fuel type (gas oil, kerosene, etc.) provides a deeper understanding of market dynamics, revealing different growth trajectories and influencing factors within each segment. Key players in this market, including Tevis Energy, Certas Energy, and others listed, are constantly adapting their strategies to navigate these market forces.