EIA data through August 2026 · updated 2026-10-29

Heating costs in New Jersey

The cheapest way to heat a home in New Jersey at today's average prices is natural gas ($15.30 per million BTU of heat), then heat pump ($27.04). A heat pump costs 76.7% more to run than a gas furnace.

Heating oil$6.38/galOct 26, 2026 · +66% y/y

Propane$4.10/galOct 26, 2026 · +16.7% y/y

Natural gas$14.28/Mcfwinter 2025–26 avg. · Jul 2026: $18.76

Electricity24.6¢/kWhAugust 2026 · -0.4% y/y

Cheapest way to heat a home in New Jersey

cost of the same amount of heat

Your home's heating need per winter: 50 million BTU

Heat source	Price used	Per million BTU of heat	Per winter
Natural gas cheapest	$14.28/Mcf · winter 2025–26 avg.	$15.30	$765
Heat pump	23.1¢/kWh ÷ COP 2.5	$27.04	$1,352
Propane	$4.10/gal · Oct 26, 2026	$49.75	$2,488
Heating oil	$6.38/gal · Oct 26, 2026	$54.20	$2,710
Electric resistance	23.1¢/kWh · winter 2025–26 avg.	$67.60	$3,380

How we compare: fuel price ÷ (energy content × efficiency). Assumptions — heating oil 138,500 BTU/gal at 85%, propane 91,500 BTU/gal at 90%, natural gas 1,037,000 BTU per Mcf at 90%, electric resistance 100%, heat pump seasonal COP 2.5 (lower in very cold weather). Gas and electricity use last winter's average price; oil and propane the latest weekly survey. Delivery fees, tank rental and fixed charges vary and are not included.

Heating oil in New Jersey, winter by winter

2023–242024–252025–262026–27 (this winter)Weekly survey, Oct–Mar · hover a point for the exact price

U.S. average: $6.23/gal. Source: EIA State Heating Oil and Propane Program (residential, weekly).

Propane in New Jersey, winter by winter

2023–242024–252025–262026–27 (this winter)Weekly survey, Oct–Mar · hover a point for the exact price

U.S. average: $2.73/gal. Source: EIA State Heating Oil and Propane Program (residential, weekly).

Natural gas price in New Jersey

Residential natural gas, $ per McfMonthly · summer prices per Mcf run higher because fixed charges are spread over less gas

Average price paid by homes, including delivery charges. Source: EIA Natural Gas Monthly.

Electricity in New Jersey

Electric heat and heat pumps run on your utility's rate. See New Jersey electricity rates by utility and ZIP code →

Questions

How much is heating oil in New Jersey?

$6.38 per gallon for homes in the EIA survey of Oct 26, 2026 (+66% vs. a year earlier).

How much is propane in New Jersey?

$4.10 per gallon for homes in the EIA survey of Oct 26, 2026 (+16.7% vs. a year earlier).

Is a heat pump cheaper than gas in New Jersey?

Not at average prices: a heat pump (seasonal COP 2.5) costs $27.04 per million BTU of heat, 76.7% more than a 90% gas furnace at $15.30. A higher-efficiency heat pump or a lower electricity rate can change this.

What is the cheapest way to heat a home in New Jersey?

At current average prices: natural gas $15.30, heat pump $27.04, propane $49.75, heating oil $54.20, electric resistance $67.60 per million BTU of delivered heat (cheapest first).