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Kerosene Usage Cost Benefit Analysis

April 28, 2008

 

Example:  Average homeowner with 50% Kerosene/50% #2 Fuel Oil

 

Installation:  Average US homeowner utilizes 860 gallons heating oil per season1

 


 

Cost of Kerosene (US avg. Jan. 2008)2 = $3.31

Cost of #2 Fuel Oil (US avg. Jan. 2008)3 = $2.79

ΔCost of K1/#2 = $0.52

 

Total cost savings/season (eliminate K1 cut):

 

(430 gallons K1) * (ΔCost of K1/#2 $0.52) = $223.60

 

BTU content #2 Fuel Oil = 138,5004

BTU content Kerosene = 136,0005

 

Total cost savings/season (increased BTU content #2):

 

(430 gallons #2) * ($2.79 gallon) * (0.018 increased BTU) = $21.60

 

Total cost savings  = (eliminate K1 cut) + (increased BTU content #2) –

(heater seasonal operation cost)6 = $223.60 + $21.60 - $23.00 =

 

$222/season

 


1From http://www.oilheatamerica.com brochure.

2From http://tonto.eia.doe.gov/dnav/pet/pet_pri_refoth_dcu_nus_m.htm EIA (Energy Information Administration

3From http://tonto.eia.doe.gov/dnav/pet/pet_pri_refoth_dcu_nus_m.htm EIA (Energy Information Administration

4From www.exothink.com/Pages/btu.html

5From www.exothink.com/Pages/btu.html

6From “Heater Estimated Operation Costs Season MA.doc”

dated 4/17/08 by Thermal Stability Systems LLC

 

 

 

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Last modified: 01/09/10