Oil vs. Propane vs. Kerosene: Which Heating Fuel Is Right for Your Maine or NH Home?

A practical comparison of cost, efficiency, and use cases to help you choose the right fuel for your home.w post

Quick Comparison

If you're building a new home, replacing an aging furnace, or just questioning whether you're on the right fuel, you're not alone. Oil, propane, and kerosene all keep homes warm across Maine and New Hampshire, but each has its own strengths, quirks, and ideal use cases. Here's how they stack up.

Heating Oil

Heating oil (often called #2 fuel oil) is the most common home heating fuel in the Northeast, and for good reason — it's energy-dense, widely available, and typically delivered directly to a tank at your home.

Pros:

• High energy content means efficient heat output per gallon
• Doesn't require a connection to a utility gas line
• Modern oil furnaces are significantly more efficient than older models
• Long-established delivery infrastructure across Maine and NH

Considerations:

• Requires an on-site storage tank, which needs periodic inspection
• Price fluctuates with oil markets, which is why many providers offer budget or price protection plans
• Regular burner maintenance keeps efficiency high and prevents issues like soot buildup or short cycling

Best for: Homeowners with an existing oil furnace or boiler, or those who want a reliable, high-efficiency fuel without dependence on natural gas infrastructure — which isn't available in many rural parts of Maine and NH anyway.

Propane

Propane is a versatile fuel that can power not just your furnace, but also water heaters, stoves, dryers, fireplaces, and backup generators — all from the same tank.

Pros:

• Burns cleaner than oil, with fewer emissions
• Extremely versatile — one fuel source for heating, cooking, and hot water
• Propane furnaces and boilers tend to have a long service life
• Works well for homes without access to natural gas lines

Considerations:

• Requires a propane tank (owned or leased), typically installed above or below ground
• Pricing is usage-based and can vary by provider and contract terms
• Tank sizing matters — undersized tanks can mean more frequent deliveries

Best for: Homeowners who want one fuel to run multiple appliances, or who are building new and don't have natural gas access. It's also a popular choice for backup generators and outdoor living additions like fire pits or grills.

Kerosene (K-1)

Kerosene, or K-1, is a lighter, cleaner-burning fuel most commonly used in portable heaters, older furnaces designed specifically for it, and situations where cold-weather performance matters most.

Pros:

• Lower sulfur content than heating oil, which means cleaner combustion
• Performs better in very cold temperatures with less risk of gelling
• Common choice for portable space heaters and specific furnace types

Considerations:

• Generally costs more per gallon than heating oil
• Not every furnace is designed to run on kerosene — check your equipment before switching
• If you use #2 heating oil in a K-1 tank during cold snaps, a gelling-prevention additive is recommended, since standard fuel oil can thicken in extreme cold

Best for: Homes with furnaces specifically designed for K-1, portable/supplemental heating needs, or households in colder microclimates where fuel performance in freezing temperatures is a priority.

There's no universal "best" fuel — it depends on your home's setup, your existing equipment, and your priorities:

• Already have an oil furnace? Sticking with heating oil, paired with regular burner maintenance, is usually the most cost-effective path.
• Want one fuel to power your whole home, including cooking and hot water? Propane offers the most versatility.
• Need reliable performance in extreme cold, or run a specific K-1 furnace or portable heater? Kerosene is built for that job.
• Building new or switching fuels entirely? It's worth getting a quote and equipment recommendation tailored to your home before making the switch — converting furnace types is a bigger investment than simply switching fuel providers.

Not Sure Which Fuel Is Right for Your Home?

Fielding's Oil & Propane delivers heating oil, kerosene, and propane throughout Central and Southern Maine and Southeast New Hampshire, and our team can help you determine what makes the most sense for your home, equipment, and budget.

Get in touch:

• Heating Oil
• Kerosene
• Propane Gas
• Or call us at 1-800-491-3194

As a family-owned, third-generation company serving the region for over 50 years, Fielding's is here to help you heat your home reliably, efficiently, and affordably — whichever fuel is the right fit.