Fuel Oil & LP Gas Dealers NAICS 457210

        Fuel Oil & LP Gas Dealers

Unlock access to the full platform with more than 900 industry reports and local economic insights.

Get Free Trial

Get access to this Industry Profile including 18+ chapters and more than 50 pages of industry research.

Purchase Report

Industry Summary

The 4,100 fuel dealers in the US generate revenue by selling heating fuels, such as LP gas, fuel oil, or kerosene, to a variety of customers, including residential, commercial, and industrial accounts. Other sources of revenue include the lease or rental of LP gas (aka propane) storage tanks and related services. Companies may also sell, install, and service appliances and heating/AC systems. Some large companies operate LP tank or cylinder exchange programs.

Declining Demand

Demand for LP gas and fuel oil for heating is declining, with revenue fluctuations driven primarily by pricing changes and weather conditions.

Seasonality and Weather

Industry sales are seasonal and peak during the “winter heating season," which runs from approximately November through March.


Recent Developments

Aug 23, 2025 - Hope for LIHEAP?
  • The Senate Appropriations Subcommittee on Labor, Health and Human Services seeks to not only maintain funding for the Low Income Heat and Energy Assistance Program (LIHEAP) but to increase funding by $20 million to $4.045 billion, Fuel Oil News reports citing a late July update issued by the National Energy Assistance Directors Association (NEADA). “The Senate is clearly rejecting the President’s budget to zero out LIHEAP for FY 26,” the update said. The subcommittee’s bill includes language to ensure LIHEAP receives 90% of its funding at the start of the year so states have sufficient funds to start their programs and support needy households in the winter months. While the fate of the program remains uncertain – the full Senate still must vote and the House will propose its own funding level for LIHEAP – the association called the subcommittee’s action “an important step in protecting LIHEAP.”
  • Propane distributors looking to fill the driver shortage gap while potentially improving safety will want to consider an overlooked category: women drivers, LP Gas reports. Women are underrepresented in trucking in general, with a 2024 survey by the Women in Trucking Association finding that an average of 9.5% of all professional truck drivers who hold CDLs (commercial driver’s licenses) are women. Women tend to be very risk averse, decreasing their likelihood of being involved in a collision. Indeed, a study conducted by Auburn University Harbert College of Business from 2010 to 2022 found that male truck drivers were 13.2% more likely to have a major unsafe driving violation. Strategies for propane dealers to attract more women drivers include simply encouraging more women to apply, offering flexible schedules and protective equipment that fit women, and on-the-job opportunities for professional development and apprenticeship programs.
  • Sales of heat pumps saw continued growth at the end of 2024, outpacing sales of gas furnaces for home heating, The Wall Street Journal reported in January. While new heat pump shipments have been outpacing gas furnaces since 2022, heat pump sales may have gotten a boost recently due to fears that the fossil-fuel-friendly Trump administration could do away with tax breaks and other financial incentives meant to spur US consumers to electrify their homes. “Over 2024, there’s definitely a substantial increase in the sales of heat pumps relative to furnaces,” Russell Unger, a principal at RMI who works on building decarbonization, told WSJ. Unger says he’s hopeful the heat pump incentives will remain available in the coming years. Currently, homeowners can claim tax credits of up to $2,000 for electric heat pump installations, and additional state-administered rebates worth thousands more are slowly rolling out into the marketplace, according to WSJ.
  • Employment by fuel oil dealers shrank 2.3% in June compared to a year ago, while average wages at gasoline stations and fuel dealers rose 2.5% over the same period to $18.56 per hour, according to the latest US Bureau of Labor Statistics data. Sales and employment by fuel oil dealers are highly seasonal, peaking during the “winter heating season," (November through March) and bottoming out in the summer. Sales for fuel oil dealers in January 2025 were up 17.2% from January 2024, according to Census Bureau figures.

Industry Revenue

Fuel Oil & LP Gas Dealers


Industry Structure

Industry size & Structure

The average fuel oil or LP gas dealer operates out of a single location, employs 17 workers, and generates about $11.5 million annually.

    • The fuel oil and LP gas dealer industry comprises 4,100 companies that employ about 70,600 workers and generate about $46.8 billion annually.
    • The industry is somewhat concentrated at the top; the top 50 firms account for 45% of industry sales.
    • Large companies include Amerigas Partners, Ferrellgas Partners, Star Group, and Suburban Gas Partners.
    • To lower the cost of providing service, most small companies operate locally. Some small companies are family-run and passed down through generations.

                                  Industry Forecast

                                  Industry Forecast
                                  Fuel Oil & LP Gas Dealers Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Vertical IQ Industry Report

                                  For anyone actively digging deeper into a specific industry.

                                  50+ pages of timely industry insights

                                  18+ chapters

                                  PDF delivered to your inbox