Heating Oil Types: A Complete Guide to Fuel Options for Your Home or Business

Choosing the right heating oil types is essential for ensuring your heating system runs efficiently, safely, and in an environmentally responsible way. Heating oil is commonly used in areas where natural gas is not available, especially in colder climates. It powers furnaces and boilers, providing dependable heat during the winter months. However, not all heating oil is the same. Various types are designed for different purposes, each with unique properties that affect performance and emissions. This article explores the main heating oil types to help you make the right choice for your home or business.
No. 2 Heating Oil: The Residential Standard
No. 2 heating oil is the most widely used type in homes across the United States and Europe. It’s a distillate fuel, similar to diesel, and is known for its high energy content and efficient combustion. Most residential heating systems are designed to use No. 2 oil, which is stored in a tank and delivered by fuel trucks.
Today’s No. 2 oil is typically ultra-low sulfur heating oil (ULSHO), which contains 15 parts per million (ppm) or less of sulfur. This cleaner version reduces emissions, improves indoor and outdoor air quality, and extends the life of your heating system. No. 2 is ideal for homes needing consistent, cost-effective heating during cold seasons.
No. 1 Heating Oil: Lightweight and Cold-Weather Friendly
No. 1 heating oil is a more refined, lighter distillate fuel compared to No. 2. It has a lower viscosity and better cold flow properties, making it suitable for outdoor tanks and extremely cold environments. It’s closely related to kerosene and often used in portable heaters or mobile homes.
Because it burns cleaner and flows more easily in freezing conditions, No. 1 heating oil is preferred in situations where cold temperatures can affect fuel performance. However, it delivers slightly less heat per gallon and tends to be more expensive, so it’s often reserved for specific uses rather than whole-house heating.
No. 4 Heating Oil: For Commercial and Industrial Applications
No. 4 heating oil is a blend of distillate fuel and residual oil, resulting in a heavier, more energy-dense fuel. It’s typically used in commercial buildings, industrial plants, and large-scale boiler systems that require high-volume heating output.
Due to its higher sulfur content and thicker consistency, No. 4 oil is not recommended for residential use. It often needs to be preheated before use and produces more emissions, making it subject to strict environmental regulations. However, it remains a cost-effective option for institutions that need significant heating power.
Bioheat® Fuel: A Cleaner, Greener Alternative
Bioheat® is an eco-friendly heating oil that blends renewable biodiesel with No. 1 or No. 2 heating oil. Biodiesel is derived from natural sources like soybean oil, recycled cooking oil, or animal fats. Bioheat® can be used in existing oil-fired systems without modification.
This renewable fuel reduces carbon emissions, improves air quality, and supports energy independence. Blends typically range from 5% to 20% biodiesel (B5–B20), with higher blends offering greater environmental benefits.
Conclusion
Understanding the different heating oil types helps you choose the best fuel for your heating needs. Whether you opt for No. 2 for standard home use, No. 1 for cold-weather reliability, No. 4 for industrial systems, or Bioheat® for sustainability, selecting the right oil ensures efficient and effective heating all year round.