Heating Oil vs. Natural Gas vs. Heat Pump Costs on Long Island
From the Alcus family · Alcus Fuel Oil & Sons, Amityville · Updated October 31, 2026
Heating with oil and want to spend less this winter? Before you think about switching, there's a lot you can do with the system you already have. At Alcus we help oil customers spend less and budget better by paying cash for the cash price, ordering online in a couple of minutes, spreading the cost with a budget plan, cutting the oil you burn with a tune-up or an efficient new boiler, and keeping your oil boiler as the cold-day backup if you add a heat pump (more below).
Thinking about switching fuels, or just wondering how your oil heat compares? Here's an honest comparison of heating oil, natural gas and heat pumps on Long Island, using public government data, with the math shown so you can plug in your own numbers. We sell heating oil, and we also install gas boilers, so we'd rather you make the right call for your house.
Compare the cost of heat, not the cost of fuel
A gallon of oil, a cubic foot of gas and a kilowatt-hour of electricity hold very different amounts of energy. The fair comparison is dollars per million Btu of heat delivered into the house:
price per unit ÷ (Btu per unit ÷ 1,000,000) ÷ efficiency
EIA's standard heat contents are 138,500 Btu per gallon of heating oil, 1,036 Btu per cubic foot of natural gas, and 3,412 Btu per kWh of electricity (EIA). For efficiency we used the ENERGY STAR minimums for new boilers (87% oil, 90% gas, per ENERGY STAR), and a range for heat pumps, whose efficiency (COP) drops as it gets colder outside.
The numbers (New York State averages)
| Heat source | Price used | Per million Btu delivered |
|---|---|---|
| Heating oil, ENERGY STAR boiler (87%) | $6.441/gal | $53.45 |
| Heating oil at last year's price (87%) | $3.903/gal | $32.39 |
| Natural gas, ENERGY STAR boiler (90%) | $17.58/Mcf | $18.85 |
| Air-source heat pump, seasonal COP 2 | 29.26¢/kWh | $42.88 |
| Air-source heat pump, seasonal COP 3 | 29.26¢/kWh | $28.59 |
| Electric baseboard (100%) | 29.26¢/kWh | $85.76 |
Prices: heating oil, EIA weekly New York residential average for the week of October 26, 2026 (year-ago: week of October 27, 2025), EIA Heating Oil and Propane Update and history. Natural gas: EIA New York residential price, 2025 annual average, EIA natural gas prices. Electricity: EIA New York residential average, January–August 2026, EIA Electric Power Monthly Table 5.6.B. Efficiencies are examples, not measurements of your home. Data checked October 31, 2026.
What the numbers say
- This season, heating oil costs more per unit of heat than natural gas. Oil prices are well above last year: EIA's New York average was $6.441 a gallon in late October 2026 versus $3.903 a year earlier.
- Heat pumps land in between at average New York electric rates, depending heavily on how efficient the unit is in cold weather.
- Prices move. Oil swings with world markets week to week; gas and electric rates change with utility rate cases and supply charges. Check NYSERDA's home heating oil price history for the long view.
What the averages don't tell you
- Your local rates. These are statewide averages. Long Island homes buy electricity through PSEG Long Island and gas through National Grid, and your bill, including fixed monthly charges, can be higher or lower. Use the rate from your own bill in the formula above.
- Is gas on your street? Many Long Island homes have no gas main nearby. Running a new service line can be costly or not possible.
- Conversion costs. Switching means a new boiler or furnace, often a chimney liner, and properly removing or abandoning the oil tank. A heat pump may need electrical upgrades and, for homes with radiators or baseboard, added indoor units.
- Cold-weather comfort. Many homes that add a heat pump keep the oil boiler as backup for the coldest days, a "hybrid" setup.
- The efficiency of what you have. An old oil burner can be far below 87%. Sometimes a tune-up or a new burner or boiler cuts more cost than switching fuels. See boiler replacement and oil burner service.
How Alcus helps oil customers spend less
Two things drive what you pay for oil heat: the price per gallon and how efficiently your equipment burns it. You can work on both without tearing anything out:
- Pay cash, get the cash price. Pay the driver cash on will-call orders to save per gallon, and compare automatic vs. will-call. Check today's heating oil price.
- Order online, full-size. Order heating oil online in a couple of minutes. Orders under 100 gallons cost more per gallon, so order full-size deliveries. See how to read your gauge and how much to order.
- Even out the bills. A budget plan spreads your heating cost into equal monthly payments, so January doesn't hit all at once.
- Burn less oil. Get a yearly burner tune-up: a clean, adjusted burner wastes less oil. A service contract includes it, plus priority on no-heat calls.
- Upgrade the boiler, not the fuel. An old oil burner can be far below the 87% ENERGY STAR minimum. Ask for a free estimate on an efficient new oil boiler or burner.
- Oil plus a heat pump. Adding a heat pump? Many homes keep the oil boiler as backup for the coldest days. We'll keep it tuned and filled.
- Get help if you qualify. Check whether you qualify for HEAP.
Talk to someone who installs both
Staying with oil? See today's heating oil price or order heating oil online, and ask us about a budget plan. We install and service oil boilers, burners and furnaces, and gas boilers too, with free estimates. Call 631-264-8800.
Need oil or service on the South Shore?
Questions
Is heating oil more expensive than natural gas on Long Island right now?
Per unit of heat, yes, this season. Using EIA statewide averages, heating oil at $6.441 a gallon (week of October 26, 2026) works out to about $53.45 per million Btu of delivered heat in an 87% boiler, versus about $18.85 for natural gas at the 2025 annual average in a 90% boiler. Your own utility rate and equipment can change the answer.
Is a heat pump cheaper to run than an oil boiler?
It depends on the electric rate and how efficient the heat pump is in cold weather. At the New York average residential electric rate for January–August 2026 (29.26¢/kWh), a heat pump averaging a COP of 2 to 3 works out to about $28.59–$42.88 per million Btu, compared with about $53.45 for oil at this week's state average. At last year's oil price it was about $32.39.
Should I switch from oil to gas?
Only if there is a gas main on your street and the numbers work for your house. The conversion cost (gas service line, new boiler or burner, chimney liner, removing or abandoning the oil tank) can take years to pay back. We install both oil and gas boilers and give free estimates.
How can I lower my heating oil bill without switching fuels?
Pay the driver cash on will-call orders to get the cash price, order full-size deliveries online (orders under 100 gallons cost more per gallon), spread the cost with a budget plan, get a yearly burner tune-up, and ask for a free estimate on an efficient new oil boiler if yours is old. If you add a heat pump, your oil boiler can stay as the backup for the coldest days.
Where do these numbers come from?
The U.S. Energy Information Administration (EIA) for prices and standard heat contents, NYSERDA for heating oil price history, and ENERGY STAR for minimum boiler efficiencies. Links are on this page.