If you heat your home with oil, you have probably noticed that the price per litre does not stay still. It can move week to week, and it often feels highest right when you need to fill up. Knowing what drives furnace oil prices in Ontario will not change the market, but it will help you plan your orders and your winter budget.
Why furnace oil prices change
Furnace oil, also called heating oil in Ontario, is a middle distillate. It comes from the same part of the refining process as diesel, so the two tend to move together. If you want the details, see our guide to furnace oil, heating oil and diesel.
These are the main factors behind the price you pay:
- Crude oil. Crude is the raw material, so global crude prices set the floor. When crude rises, furnace oil usually follows within weeks.
- Distillate supply and demand. Heating oil competes with diesel for the same refinery output. Cold winters, refinery outages and strong diesel demand from trucking and farming can push distillate prices up.
- The exchange rate. Crude and wholesale fuel are priced in U.S. dollars. A weaker Canadian dollar makes fuel more expensive here.
- The season. Demand for heating oil climbs from fall into winter. Prices often reflect that.
- Taxes. Since April 1, 2025, the federal fuel charge on light fuel oil has been set to zero across Ontario and other provinces where it applied. Sales tax still applies to your bill.
- Delivery costs. The cost to get fuel to your tank includes trucks, drivers and distance. How much you order and when you order also matter.
What affects your delivered price
The market sets the base. Your own order shapes the rest.
- Order size. Larger deliveries spread the cost of the trip over more litres. Very small orders may carry a delivery charge.
- Location. Distance from the depot and access to your tank affect delivery time.
- Timing. Urgent and after-hours requests are accommodated where possible, with a service charge. Running low in a cold snap is usually the most expensive way to buy fuel.
How to check current furnace oil prices
Natural Resources Canada publishes weekly average retail fuel prices, including furnace oil, for Canada and several cities. It is a useful way to see whether prices are trending up or down before you order. Your delivered price will differ from the average because it depends on your order and location. For an exact number, request a quote.
How to budget for furnace oil this winter
- Estimate your use. Start with your past bills or our guide on how much furnace oil a home uses in winter.
- Order before you run low. Planned orders avoid urgent delivery charges and give you time to compare. Our guide on how often to refill your tank helps you set a rhythm.
- Set up regular deliveries. A regular delivery schedule keeps your tank from running low and makes costs easier to predict.
- Service your furnace. A clean, tuned furnace burns fuel more efficiently, so each litre goes further.
- Watch the trend. If prices are falling, a smaller top-up can make sense. If they are climbing, filling up earlier may help.
Get a furnace oil quote from Lambert Oil
Lambert Oil is a family-owned company based in Toronto, delivering heating fuel since 1952. We offer furnace oil delivery to homes across the GTA, including Mississauga, Brampton, Vaughan, Markham, Richmond Hill, Oakville, Hamilton and Burlington, and to more than 200 municipalities in Ontario. Learn more about what furnace oil is and how it heats your home.
Standard lead times run from a few hours to one business day, and they can be longer in peak season. Call 416-531-1158 or request a quote to plan your next delivery.
Frequently asked questions
Why are furnace oil prices higher in winter?
Demand for heating oil rises in fall and winter, and it competes with diesel for the same refinery supply.
Is there still a carbon tax on furnace oil in Ontario?
The federal fuel charge on light fuel oil has been set to zero since April 1, 2025. Sales tax still applies.
Where can I see current furnace oil prices?
Natural Resources Canada publishes weekly average retail prices. Your delivered price depends on order size, location and timing.
