Is number 2 fuel oil tax-free?

Number 2 fuel oil is tax-free so that the prices are kept low at all times. This is because it is used for home heating, making it a vital need every winter. It is used in boilers and furnaces and has the same red dye as untaxed diesel fuel. Since it is used for residential heating, many call it home heating oil.

What is number 2 fuel oil?

Number 2 fuel oil is often blended with #1 fuel oil. This allows it to have lower viscosity and higher efficiency levels. Some oil companies refer to this as the home heating oil winter blend or kerosene mix. As there are many similarities between #2 and number 1 fuel oils, they can supposedly be used interchangeably.

How much does heating oil cost per gallon?

This is $1.50 per gallon more than the current average price, $3.44, and $1.85 per gallon more than the current best price, $3.09. Home heating oil prices change on a day to day basis based on many factors, including the demand for heating oil, heating oil inventories at local fuel terminals (for example CITGO), and the price of crude oil.