The Cost of Fossil Fuel Heating in Upstate New York (2026–27): Prices by Region, How to Cut Your Bill, and the Way Out

If you heat with oil, propane, kerosene or natural gas anywhere from Albany to Lake Placid, this winter's bills will depend more on what you burn than on almost anything else. Heating oil prices in New York climbed roughly two-thirds in a single year this fall. Propane is up more modestly, and natural gas is about flat. This guide puts the latest numbers in one place: what each fuel costs right now, how prices differ across Upstate New York, what a winter of heat really costs, and the practical steps that cut your fuel use starting this week. At the end, it covers the option more of our neighbors are choosing: getting off delivered fuel altogether with a Mitsubishi Hyper-Heat heat pump.

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What heating fuel costs in New York right now

Here are the most recent residential prices from New York's two official fuel-price surveys, the NYSERDA weekly heating fuels survey and the U.S. Energy Information Administration's State Heating Oil and Propane Program.

• $6.23Heating oil, $/gal, NY statewide (NYSERDA, Oct 13, 2026) +68% vs. 2025
• $6.44Heating oil, $/gal, NY (EIA, week of Oct 26, 2026)
• $3.79Propane, $/gal, NY (EIA, week of Oct 26, 2026) +12% vs. 2025
• ~30¢Electricity, per kWh, NY statewide average (EIA, May 2026)

Why two oil prices? NYSERDA and EIA survey different dealers on different days, so their averages differ by a few cents. Both show the same story: oil costs far more than it did last winter. Your dealer's price can be well above or below the average, so always compare.

Why heating oil jumped so much in 2026

Heating oil, diesel and kerosene are all "distillate" fuels, and distillates have been squeezed all year. Governor Hochul has tied this year's spike to the war with Iran and federal policy. The EIA reports that East Coast distillate inventories started the heating season about one-third below normal and expects them to stay 20 to 30 percent below normal through the winter. Low inventories mean less cushion when a cold snap hits, which is when prices tend to jump. In mid-October the State directed fuel providers to keep adequate reserves and expanded heating assistance for households that heat with delivered fuels.

Propane is a different story. It comes mostly from U.S. natural gas processing, and EIA expects propane inventories to be above their five-year average this winter. That's why propane prices are up modestly while oil has soared. Natural gas prices on the wholesale market are lower than a year ago, so most upstate gas utilities expect flat or slightly lower winter heating bills, even with delivery rate increases.

What the federal winter outlook says

In its October 2026 Winter Fuels Outlook, the EIA projected that U.S. households heating with oil will spend about 21% more this winter (around $2,115 for November through March) even with a milder forecast in the Northeast, while households heating with propane and natural gas are projected to spend less than last winter. Heating oil homes in Upstate New York use far more fuel than the national average, so local bills run well above that national figure.

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What a winter of heat costs at today's prices

Fuel use varies enormously from house to house. A tight 1,500 square foot ranch in Saratoga might burn 450 gallons of oil a winter; a drafty 1880s farmhouse in Washington County can burn well over 1,000. Find last year's total gallons on your delivery receipts or your dealer's online account, then find your row below.

Heating oil: same gallons, very different bill

Propane

Prices are New York averages and exclude delivery minimums, tank rental, service plans and taxes your dealer may add. Many rural propane customers pay well above the state average, especially on will-call deliveries.

Apples to apples: what 100,000 BTU of heat costs with each fuel

Gallons, therms and kilowatt-hours aren't comparable on their own. The fair comparison is the cost of the heat that actually reaches your rooms after equipment efficiency. 100,000 BTU is about one therm, or roughly what a typical upstate home uses in a few hours on a cold January day.

• Electric baseboard$7.91
• Heating oil, 85% boiler$5.29
• Propane, 90% furnace$4.60
• Mitsubishi Hyper-Heat heat pump$2.85
• Natural gas, 95% furnace$1.89

How we calculated it: oil at $6.23/gal (138,500 BTU/gal); propane at $3.79/gal (91,500 BTU/gal); natural gas at an assumed $1.80/therm all-in (your utility's rate may differ); electricity at $0.27/kWh; heat pump at a seasonal average COP of about 2.8, the same conservative efficiency our heating cost calculator uses for Upstate NY winters. At 22¢/kWh the heat pump figure drops to about $2.32; at 30¢ it's about $3.16.

Two honest takeaways. First, at this winter's prices a Mitsubishi heat pump delivers heat for roughly 46% less than an oil boiler and about 38% less than propane. Second, natural gas is still the cheapest fuel per unit of heat where you can get it. Gas homes usually switch for other reasons: adding efficient air conditioning, replacing an aging furnace, or comfort in rooms the furnace never reached. We'll tell you plainly whether a heat pump pencils out for a gas-heated house.

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Heating costs by region across Upstate New York

Two things change from one part of Upstate New York to another: the price you pay for fuel, and how much fuel your house needs. Colder places need more heat, measured in heating degree days (HDD). National Weather Service 1991–2020 normals put Albany at 6,357 HDD and Glens Falls at 7,409 HDD, about 17% more. The same house that burns 700 gallons of oil in Albany would burn roughly 815 gallons in Glens Falls, about $5,080 at $6.23 a gallon.

Regional oil and propane prices change weekly. For your exact area, check NYSERDA's weekly heating oil and propane price pages, which break prices out by region, and call two or three local dealers.

How to buy oil and propane smarter this winter

• Compare every delivery. Prices between dealers in the same town can differ by 50 cents a gallon or more. On 700 gallons, that's $350.
• Read price-cap and pre-buy contracts closely. A cap protects you if prices spike, but check the fee, the ceiling price and whether you can lose your prepaid gallons. Locking in near a seasonal high can cost you if prices fall.
• Automatic delivery beats running out. A run-out means an emergency fee, a burner restart call and possibly frozen pipes. If you stay on will-call, order at a quarter tank.
• Own your propane tank if you can. If the dealer owns the tank, only that dealer can fill it. Owning the tank lets you shop for price.
• Keep the path clear. Shovel a path to the fill pipe or tank and mark it after storms so the driver doesn't skip you.
• Apply for HEAP if you qualify. New York's Home Energy Assistance Program regular benefit season runs November 2, 2026 through April 16, 2027, and emergency HEAP opens January 4, 2027. A family of four with income up to about $6,852 a month may qualify. HEAP also helps eligible homeowners with heating equipment clean-and-tune, repair and replacement. Apply through your county Department of Social Services or online through NY's OTDA.

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How to prepare your home: the efficiency checklist, in the order that pays

The cheapest gallon of oil or therm of gas is the one you never burn. Every fix below works no matter what you heat with, and most of them make a future heat pump smaller, quieter and cheaper too. They're ordered roughly by how much they save for the money spent in a typical Upstate NY house.

1. Seal the air leaks first (the cheapest big win)

Warm air rises and escapes through the top of the house, pulling cold air in through the bottom. That "stack effect" is strongest on our coldest, windiest nights, which is exactly when fuel is most expensive to burn. Before you buy anything else, plug the holes:

• Attic bypasses: gaps around plumbing vents, wiring holes, recessed lights, the chimney chase and the attic hatch. These are usually the biggest leaks in the house. Foam and caulk them before any insulation goes on top.
• Basement rim joists: the band of framing that sits on the foundation in nearly every older Capital Region and Adirondack home. Spray foam or cut-and-cobbled rigid foam here stops cold drafts at the floor.
• Doors and windows: new weatherstripping and door sweeps, rope caulk or removable caulk on old sashes, and plastic window film on single-pane windows you can't replace yet. See three ways to make your front door more efficient.
• Outlets and switches on exterior walls: foam gaskets cost pennies apiece.
• The fireplace: an open damper is a hole in your roof. Keep it closed when there's no fire, or add a chimney balloon or a tight-fitting glass door.

Not sure where your leaks are? A blower-door test during a home energy assessment shows exactly where air is getting in. Read more about common air leaks and what they cost you.

2. Insulate the attic, then the basement

Upstate New York sits in climate zones 5 and 6. For those zones, ENERGY STAR and the U.S. Department of Energy recommend attic insulation around R-49 to R-60, which is roughly 16 to 20 inches of blown cellulose or fiberglass. A lot of homes built before 1980 in Washington, Warren, Saratoga and Rensselaer counties have 3 to 6 inches. Next in line are basement walls and rim joists, then floors over unheated crawlspaces and garages. Walls are usually last because they're the hardest to reach. Compare options in 4 common types of home insulation and 3 attic problems to fix.

3. Tune up the oil, propane or gas system you have

If you're heating with fossil fuel this winter, make sure every dollar of fuel turns into as much heat as possible:

• Annual cleaning and combustion test. Soot on an oil boiler's heat exchanger acts like insulation, sending heat up the chimney instead of into your water or air. A proper tune-up includes a new nozzle and filter, cleaning, and a combustion-efficiency reading, not just a look. See oil furnace maintenance and why annual inspections matter.
• Change the furnace filter every one to three months in heating season. A clogged filter starves airflow and lengthens run time. Here's how often to replace it.
• Seal and insulate ducts or heating pipes that run through unheated basements, crawlspaces and attics. ENERGY STAR estimates a typical duct system loses 20 to 30 percent of the air moving through it to leaks and poor connections.
• Bleed radiators and baseboards on hot-water systems so they fill with water, not air, and keep furniture and drapes off them.
• Watch for short cycling. A boiler or furnace that fires on and off every few minutes wastes fuel. Here's why boilers short cycle.
• Test your carbon monoxide alarms. Any home that burns oil, propane, gas or wood needs working CO alarms on every level. Read our carbon monoxide safety guide.

4. Don't forget hot water

In many oil and propane homes, the same boiler or a separate fossil-fuel tank makes the hot water all year, including summer, when the boiler is otherwise idle and inefficient. The Department of Energy recommends setting the water heater to 120°F. Insulating the first few feet of hot-water pipe, fixing drips and using low-flow showerheads all help. A heat pump water heater can take hot water off fossil fuel entirely.

5. Windows: cover them before you replace them

Replacing windows is expensive and usually has a long payback. In the meantime, snug-fitting cellular (honeycomb) shades, insulated curtains closed at night, interior storm panels and window film cut heat loss through the glass for a small fraction of the cost. Open south-facing shades on sunny winter days to let free solar heat in, then close them at dusk.

6. Get a home energy assessment

New York homeowners can get a home energy assessment through NYSERDA-supported programs, and income-eligible households may qualify for no-cost upgrades through EmPower+. An assessment with a blower-door test tells you which of the fixes above matter most in your house, so you spend the money where the heat is actually leaking.

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Daily heating habits that cut fuel use

Equipment and insulation are the big levers. Habits are free, and they add up.

1. Set back the thermostat, sensibly. The Department of Energy says turning the thermostat back 7 to 10°F for 8 hours a day can save up to 10% a year on heating and cooling. With a boiler or furnace, set back overnight and while you're at work. (With a heat pump, keep setbacks small, about 2 to 4°F, or none at all; see heat pump optimization tips.)
2. Use a smart or programmable thermostat. ENERGY STAR certified smart thermostats save about 8% on heating and cooling bills on average, mainly by making setbacks automatic. See where to put your thermostat and thermostat energy-saving tips.
3. Dress the house for winter. 68°F feels warmer with a sweater, slippers, a throw blanket and humidity in the 30 to 40 percent range. Dry air feels colder. Learn about ideal home humidity.
4. Run ceiling fans clockwise on low to push warm air down from high ceilings. Here's how to use ceiling fans in winter.
5. Don't close vents or heat with the oven. Shutting registers in a forced-air system rarely saves fuel and can hurt the equipment. See does shutting vents save energy? Ovens and unvented heaters are a carbon monoxide risk.
6. Use bath and kitchen exhaust fans for minutes, not hours. They pull heated air out of the house.
7. Keep heat in closed rooms only if it makes sense. With zoned hot-water heat, turning down unused bedrooms saves fuel. With a single-zone furnace, it mostly unbalances the house. Read closing doors to reduce heating costs.
8. Be careful with space heaters. A plug-in heater can make sense for one room for a short time, but heating several rooms with resistance heat at upstate electric rates is expensive, and space heaters are a leading cause of home heating fires. See tips for preventing home heating fires.
9. Going away? Set the house to 55°F, never off, to protect the pipes. Here's how to avoid frozen pipes and saving energy while you're away.

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The ultimate solution: stop buying fossil fuel with a Mitsubishi Hyper-Heat heat pump

Everything above helps you burn less oil, propane or gas. A cold-climate heat pump lets you stop burning it for most of the winter, or entirely. Instead of creating heat with a flame, a heat pump moves heat that already exists in the outdoor air into your home. Because it moves heat rather than making it, it delivers far more heat energy than the electricity it uses.

Here's the math that matters. An oil boiler at 85% efficiency turns 85 cents of every fuel dollar into heat. A Mitsubishi Hyper-Heat system averaging a seasonal efficiency (COP) around 2.5 to 3 in our climate delivers 2.5 to 3 dollars' worth of heat for every dollar of electricity, and in mild fall and spring weather it does even better.

Why Mitsubishi Hyper-Heat for Upstate NY winters

• Built for our cold. Mitsubishi's Hyper-Heating INVERTER (H2i) outdoor units hold 100% of their rated heating capacity down to -13°F and keep heating below that, with reduced output. We size every system to your town's design temperature. That's why they work in Glens Falls, Ticonderoga and Lake Placid, not just Albany. Learn more about Mitsubishi Hyper-Heat and how it compares to conventional heat pumps.
• No fuel deliveries, no tank, no price spikes. No more watching the oil gauge in January or waiting on a propane truck after a storm. You pay one utility bill, and electricity prices don't jump 50 cents overnight the way delivered fuels can.
• Air conditioning included. The same system cools and dehumidifies in summer, replacing window units.
• Room-by-room comfort. Ductless wall units, ceiling cassettes, floor units and ducted air handlers let every zone hold its own temperature.
• Cleaner, safer air. No combustion inside the house means no carbon monoxide risk from the heating system and no fuel smell.
• Keep your boiler as backup if you want. Many customers start with the rooms they use most and keep the existing system for the coldest nights. Read about adding zones later and cold-climate heat pump vs. furnace.

What a Mitsubishi heat pump costs to run here

For a typical 2,000 square foot Upstate NY home, Superior CO-OP HVAC estimates a Mitsubishi system costs about $900 to $1,600 per heating season to run, versus $2,000 to $3,500 or more for oil. Typical savings are about $950 per year switching from oil and about $855 per year from propane, with up to 48% lower heating cost off oil. Your number depends on your home, your insulation and your electric rate, which is exactly why we built the free heating cost calculator. More detail: what a heat pump costs to run per month in NY.

What it costs to install, and what helps pay for it

Mitsubishi single-zone systems run $10,000 to $15,000 installed, and whole-home multi-zone systems start at $15,000, with larger homes costing more. See the full Mitsubishi cost guide for Upstate NY and oil to heat pump conversion cost.

• NYS Clean Heat rebates through National Grid and NYSEG are active for qualifying cold-climate heat pumps. The amount depends on your utility, whether the old system is fully decommissioned, and your home's insulation. We confirm your exact figure at the free estimate and file the paperwork. See current heat pump rebates.
• 0% financing for 18 months and longer-term plans are available, so the monthly payment can sit close to what you're already spending on fuel. See financing options.
• The federal 25C tax credit for heat pumps ended for systems installed after December 31, 2025. State and utility rebates continue.

Why homeowners choose Superior CO-OP HVAC

• Mitsubishi Diamond Contractor ELITE, Mitsubishi's top installer tier, and Mitsubishi-focused since 2020.
• 12-year parts and labor warranty and our 180-Day Comfort Guarantee.
• Veteran-owned since 2013, based in Cambridge, NY, serving the Capital Region, Saratoga, Glens Falls and Lake George, Washington County, the Adirondacks and southern Vermont.
• Rebates filed for you. We handle the NYS Clean Heat application so the rebate comes off your invoice.

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Get your free estimate: book online, 24/7 by phone, or call the office

Want to know exactly what a Mitsubishi system would cost for your house, what your rebate would be, and what you'd save compared with this winter's oil or propane bills? Our free in-home estimate gives you an exact written price with every rebate already applied. Book it whichever way is easiest:

Not ready for a visit? Run your own numbers first with the free heating cost calculator. Finish it before your estimate appointment and the report includes a $250 savings code.

Frequently asked questions about heating costs in Upstate NY

Sources

• NYSERDA, Weekly Energy and Fuel Markets Report and weekly heating oil and propane price surveys (October 2026).
• U.S. Energy Information Administration, State Heating Oil and Propane Program, New York weekly residential prices (week of October 26, 2026).
• U.S. Energy Information Administration, Winter Fuels Outlook and Short-Term Energy Outlook (October 2026).
• U.S. EIA residential electricity and natural gas prices for New York (May 2026), via the Empire Center.
• National Grid, 2026–27 winter heating cost outlook for upstate New York (October 2026).
• National Fuel Gas, 2026–27 winter heating cost projection (October 2026).
• NYS Public Service Commission, NYSEG and RG&E temporary rate order (May 2026), and National Grid rate plan (August 2025).
• Office of Governor Kathy Hochul, heating assistance announcement (October 16, 2026), and NYS OTDA, Home Energy Assistance Program 2026–27.
• National Weather Service Albany, 1991–2020 climate normals for Albany and Glens Falls.
• ENERGY STAR and U.S. Department of Energy Energy Saver guidance on air sealing, insulation, ducts, thermostats and water heating.
• IRS guidance on Public Law 119-21 (the end of the 25C credit for property placed in service after December 31, 2025).

Prices in this article were current as of November 2, 2026, and will change. We'll update this page as the winter goes on.