Comparing the Cost of Different Home Heating Fuels
Last updated July 2, 2026
Last reviewed July 8, 2026
Comparing heating fuels on a fair basis requires converting each fuel's price to a common unit of heat output, typically dollars per million BTU, since fuels are sold in different units. natural gas by the therm, propane and heating oil by the gallon, electricity by the kilowatt-hour. At 2026 average prices, natural gas typically costs $12 to $18 per million BTU delivered, heating oil runs $28 to $35 per million BTU, propane runs $30 to $38 per million BTU, and standard electric resistance heating runs $35 to $45 per million BTU, though heat pump electric heating can effectively halve that cost due to the efficiency multiplier heat pumps provide compared to resistance heating.
This comparison explains why natural gas remains the most popular heating fuel where available, and why heat pump adoption has grown significantly as the technology has improved cold-weather performance. Households relying on heating oil or propane due to lack of natural gas access in their area face meaningfully higher per-BTU costs, which has driven growing interest in heat pump conversions even in moderately cold climates, since modern cold-climate heat pumps can now operate efficiently down to outdoor temperatures of 5 degrees Fahrenheit or lower, a significant improvement over earlier heat pump generations that struggled below freezing.
Comparing heating fuels using cost per million BTU rather than the price per unit sold, since the units themselves are not comparable across fuel types. For households without natural gas access currently using oil or propane, calculate whether a heat pump conversion would reduce per-BTU heating costs given current electricity rates in your area, as the efficiency advantage of modern heat pumps often outweighs the higher nominal price of electricity.