The U.S. Energy Information Administration expects heating oil prices to average 34% higher than last winter. Even if the winter ends up milder, heating-oil spending is likely to increase by roughly 21% while gas-heated households are expected to spend about 9% less. Economics like these should have any sane homeowner jumping at the chance for an oil to gas conversion.
But it bears mentioning these conversions are huge undertakings with numerous moving parts, all of which can affect when the new heat kicks on.
Why the Fuel Numbers Favor an Oil to Gas Conversion This Winter
Most homes that still burn heating oil are in the Northeast, so let’s focus on New Jersey in particular. A 25- or 30-year-old oil boiler may turn less of each gallon into heat than a newer system. When contractors price oil-to-gas conversions, the old boiler’s age and condition help determine whether it’s worth repairing to keep on trucking for a few more years, or if it should be replaced right then and there. Size plays a big role too, because an old boiler that was sized properly years ago may not meet modern expectations.
Natural gas also burns with less soot and less carbon dioxide than heating oil. You may not notice much of a physical difference, but the maintenance guys in your basement will. There won’t be any soot buildup on the heat exchanger. That alone is a good reason to weigh how gas and oil affect emissions along with fuel price.
What Changes the Price of an Oil to Gas Conversion
PSE&G’s conversion guidance puts the average new gas furnace at $6,000 to $12,000. That’s just the heating equipment, not necessarily the entire oil to gas conversion. A house may also need new gas service and interior piping. Permits, venting, and tank work can add to the bill too.
If the house doesn’t have any gas yet or the old system can’t take a like-for-like swap, you might as well be burning your money to keep warm. A long front-yard setback or a driveway in the trench path makes the digging harder. PSE&G prices service work partly on the size, length, and difficulty of the dig.
Start With the Heating System Already in the House
Existing ductwork can usually let a basement keep forced-air heat. It’s a simple swap job to put in a new furnace using the same ducts. Baseboard or cast-iron radiator heat is a different story, because they’re usually part of a gas boiler system. Combination boilers may let the separate water heater come out.
Steam is its own beast. Plenty of older North Jersey houses still have steam radiators, and a steam system needs a steam boiler. Condensing boilers built for hot-water systems won’t work on steam.
With all this in mind, it’s obvious the particular pros and cons of an oil to gas conversion differ from house to house. In a house reliant on steam heat, more of the savings may come from the lower fuel price.
Gas Pipe, Appliances, and Venting Add Their Own Work
New gas pipe has to carry enough fuel for everything that may run at the same time. A plumber sizes gas piping from the combined Btu demand of everything connected to it. A pipe that’s too small won’t be able to deliver the necessary materials if everything starts up at once.
If the oil to gas conversion adds a gas range, dryer, or water heater, the pipe may need to be larger. That’s a discussion worth having with your plumber beforehand instead of wondering what could have been after the fact.
High-efficiency condensing units usually vent out a side wall through plastic pipe, leaving the chimney unused. Standard-efficiency units that vent into the old flue can need chimney relining to suit the new exhaust. A liner, cap, and connector can then show up as a separate line on the quote.
Gas Service Can Take Longer Than the Equipment Installation
If a home lacks gas service entirely, it needs that utility before anything else can be installed. Acquiring that utility requires a form asking for the home’s square footage, the planned gas appliances, and where the oil tank sits. Those details tell the utility how big a service line to run.
PSE&G tells customers a new service line takes about four to six weeks, depending on permit approval and weather. Before digging, the owner marks private lines such as sprinkler piping, yard lighting, and a buried oil tank. After digging the trench, PSE&G backfills it, but restoring the surface is the homeowner’s responsibility.
PSE&G sets the meter after inspections pass and asks for the request about four weeks before the work is done. That timing helps because the boiler or furnace can go in before the utility is ready to supply gas.
A licensed heating contractor handles the house-side piping and equipment, while the utility handles the service line and meter. Some towns also require their own inspection of the heater or water heater. For a project starting in October, it usually makes sense to keep the oil system running until gas is live and the new heater passes inspection. If another oil delivery is necessary, ordering less fuel leaves less sitting in the tank when the time comes.
Decide What Happens to the Oil Tank Early
New Jersey doesn’t regulate home heating-oil tanks like commercial ones, but a buried tank still can’t be ignored when the fuel changes. Under NJDEP rules, a closure-certified individual from a certified firm has to handle a buried tank. That applies whether the tank comes out or stays filled in place, and the town may require a permit.
An aboveground basement tank is an easier job. A homeowner or a licensed New Jersey plumbing or HVAC contractor can usually remove it. That makes the contractor’s New Jersey licensing and heating experience relevant before anyone disconnects the tank.
For a buried tank, removal and abandonment in place are different choices. A properly closed tank can sometimes stay in the ground, but it may raise questions years later when the house sells or gets refinanced. Removing it during the conversion ends that uncertainty and lets the contractor see whether the tank leaked.
A Leak Turns the Tank Job Into an Environmental Job
If a buried heating-oil tank has leaked, NJDEP requires the homeowner to report the leak to its hotline at 877-927-6337. A contractor certified in subsurface evaluation or a Licensed Site Remediation Professional handles the testing and cleanup. NJDEP closes the case with a No Further Action letter once the required work and reporting are done.
Questions That Come Up Before an Oil to Gas Conversion
Can an oil boiler just get a gas burner?
Some oil boilers can accept a gas conversion burner. That saves the cost of a new boiler, but the old heat exchanger and its efficiency stay the same. A sound boiler with years of life left and no cracks is a far better candidate than a 30-year-old unit. Burner conversion makes less sense if a full boiler replacement is likely a few winters later.
Is there financial help if the old tank leaked?
Yes, some owners of leaking unregulated tanks may qualify for help from New Jersey’s Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund. That fund offers grants or loans, but who qualifies and how much money is left need checking before it goes into the budget. A tank-cleanup contractor can say which state program fits.
Is an oil to gas conversion worth it if the boiler still works?
It can be, especially when the boiler is nearing the end of its useful life. A system past 20 years old that needs another repair every heating season is already moving toward replacement. Planning an oil to gas conversion while the boiler still runs gives time to check gas service, compare equipment, and sort out the oil tank. A boiler failure in January does not offer the same flexibility.
Make the Utility Call Before Ordering the Boiler
Before choosing equipment, find out what the utility needs to serve the new load. Ask whether a gas main already runs on the street. If the house already has gas, check whether the service and meter can handle the new boiler and any added appliances. For new service, get the utility’s excavation cost and schedule.
Put the oil-tank plan on the same early checklist. A buried tank that needs a permit, removal, or soil testing can easily outlast the furnace install itself. Once the utility scope and tank condition are known, the equipment quote is finally based on the whole job rather than just the boiler sitting in the basement.
Sources
U.S. Energy Information Administration, Winter Fuels Outlook 2026-27
New Jersey Department of Environmental Protection, Unregulated Heating Oil Tank Program
