The wholesale heating-oil benchmark closed at $4.318 per gallon (2026-08-18) — your delivered price adds roughly a dollar of distribution, margin and taxes on top. How the price is built, when to fill up, and what to watch before winter.
| Layer | ≈Share of delivered price | What it covers |
|---|---|---|
| Wholesale (NYMEX HO) | 60–70% | The futures benchmark — tracks crude and the distillate market; live chart here |
| Distribution & storage | ≈15% | Barge/pipeline to terminals, truck delivery to your tank |
| Dealer margin | ≈15% | Service, financing, small-lot delivery economics |
| Taxes | varies | State-dependent; some states exempt heating fuel |
Approximate shares; small orders and COD deliveries price higher per gallon. Related: the futures benchmark · why distillates cost more · natural gas (the main competing heat source) · distillate stocks in the weekly EIA report.
The wholesale benchmark — NYMEX heating oil futures — last closed at $4.318 per gallon (2026-08-18). Delivered residential prices run roughly 80¢–$1.50 above wholesale after distribution, the dealer's margin and local taxes, so expect home delivery quotes a dollar or so higher. The EIA publishes official residential prices weekly during the October–March heating season.
Historically late summer (July–September), when heating demand is at its annual low — though it's a tendency, not a rule, and a mild-winter forecast or crude selloff can make midwinter cheaper. What reliably costs money is buying in a cold snap, when demand spikes and delivery slots tighten. Many dealers offer pre-buy or price-cap contracts each summer; compare them against your risk tolerance rather than treating them as guaranteed savings.
Heating oil is a distillate, so its price follows the diesel/distillate market, not crude alone. Low regional distillate inventories, a cold snap, or refinery problems can widen the gap sharply — in 2022 Northeast heating oil hit records even on days crude fell. Watch distillate stocks in the weekly EIA report for the early signal.
The Northeast is essentially the entire market: New York, Pennsylvania, Massachusetts, Connecticut and Maine account for most US consumption, with roughly 4 in 10 Maine homes still heating with oil — a legacy of pre-natural-gas infrastructure. Elsewhere, gas, electricity and heat pumps have largely replaced it.