Heating Oil vs. Propane for Delmarva Homes: A Decision Guide

A PepUp propane delivery truck in front of a home on Delmarva, filling a tank after the customer converted to propane from heating oil.

PepUp delivers fuel and services propane and heating oil systems across Delmarva. Both fuels work well for home heating. When considering heating oil vs. propane decisions, the right choice for your home depends on cost, equipment operating and maintenance requirements, and your individual needs.

This guide compares propane and heating oil across the factors that matter most for a Delmarva home. Use the interactive decision tool to identify which type of heating system is right for you.

Heating Oil vs. Propane: The Basics

Both fuels arrive by delivery truck and fill a tank on your property. Beyond that, the setup differs.

Heating oil tanks usually sit above ground next to the house, or in a basement or garage, and hold 275 to 500 gallons. Older tanks sometimes sit underground and need periodic inspection.

Propane tanks sit above or below ground outside the home. PepUp customers can lease a tank from us or use one they already own.
Learn more by reading our fuel-specific articles about heating oil and propane.

Cost to Operate

Cost depends on fuel price and how efficiently your furnace turns fuel into heat. Here is an example comparison for a typical Delmarva winter.

PepUp estimates that a typical propane-heated home on Delmarva uses about 800 gallons over the winter. This example starts from that figure and asks how much heating oil the same home would need to produce the same amount of heat.

Category Propane Heating Oil
Price per gallon $2.99 (Promise Plan cap) $5.913 (EIA Delaware pricing, 3/30/26)
Energy content 91,452 Btu/gallon 138,500 Btu/gallon
Modeled annual gallons* ~800 gallons ~590 gallons
Modeled annual fuel cost* ~$2,392 ~$3,491
CO2 emissions 12.68 lbs/gallon 22.45 lbs/gallon
CO2 per million Btu 138.63 lbs 163.45 lbs

*Based on PepUp's average customer usage of 800 gallons of propane per winter for propane primary heat. Actual costs depend on your home's size, insulation, thermostat habits, and current market pricing. Call PepUp at 800-638-7802 for a current propane or heating oil quote for your home.

Efficiency and Equipment Maintenance

Propane systems typically run at a higher efficiency rating than oil systems, which means less fuel wasted as exhaust heat. Propane also burns without the soot that builds up in oil furnaces and chimneys over time, so propane equipment often needs less frequent cleaning.

Both fuels require a yearly service visit and regular maintenance. A technician checks the burner, filters, and safety controls on either system.

Reliability During an Outage

Winter storms often knock out power on Delmarva. Both oil and propane furnaces need electricity to run the blower and ignition system, so a power outage stops either system the same way.

A backup generator restores heat. When you have propane and existing supply lines for your home, you have an added option: a standalone propane heater, like a Heatstar unit, can run without electricity and keep a room warm during an extended outage.

Environmental Comparison

Propane produces less carbon dioxide than heating oil. The U.S. Energy Information Administration rates propane at 12.68 pounds of CO2 output per gallon, compared with 22.45 pounds per gallon for heating oil.

Measured per million BTU of heat produced, the figures are 138.63 pounds of CO2 for propane and 163.45 pounds for heating oil. Propane is a lower-emission option, either way you measure environmental impact.

Make the Decision Using Our Interactive Tool

Use the interactive tool below to walk through what’s most important to you when it comes to heating your home.

What does your home heat with right now?

What matters most to you? Select all that apply.

Switching to Propane with PepUp

A PepUp propane delivery truck in front of a home on Delmarva, filling a tank after the customer converted to propane from heating oil.Homeowners switching from heating oil to propane do not always need to replace their whole heating system. Most furnace and water heater models do require a change. If you make the decision to switch to propane, we’ll work with you to determine the right tank size for your home, the safest location for your tank(s), tank delivery and supply line installation. We’ll make sure you understand propane safety and how to operate your system, fill the tank, and test for leaks and safe pressures before turning on your home’s propane supply.

A PepUp Energy Specialist can look at your current equipment and walk you through what a conversion involves. Here’s a checklist you can use when you’re considering adding propane to your home.

Remember that you also have pricing options to help you control the cost of operating your propane heating system. The Promise Plan with Price Protection caps your propane price at a discounted price per gallon, and averages your expected fuel delivery costs across 11 months. Automatic Delivery keeps your tank filled on a schedule built around your household’s usage, so you don’t have to track it yourself.


Frequently Asked Questions (FAQ)

Propane is currently the lower-cost option for most Delmarva homes. Actual costs still depend on your home’s size, insulation, and furnace efficiency. Here’s a link to the latest outlook for propane prices on Delmarva.

Yes. Converting from heating oil to propane usually involves a new propane tank, a line connection, and in most cases a furnace or water heater swap. A PepUp Energy Specialist can evaluate your current equipment and walk you through what the switch would involve for your home. Contact our team to learn more about what a conversion involves.

Yes. Propane furnaces heat a home effectively and often run at a higher efficiency rating than oil furnaces. Many homeowners notice warmer air at the vent with a well-sized propane system.

Your furnace stops producing heat until the tank is refilled. PepUp offers 24/7 emergency delivery for customers who run low during the winter months. Automatic Delivery helps prevent a run-out, with PepUp’s “No Run Out” Guarantee.

Yes. PepUp delivers propane and heating oil across Delaware, Maryland, and Virginia. Contact a PepUp Energy Specialist to compare pricing and delivery options for your address.