Fuel Oil & LP Gas Dealers

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 and weather conditions.

Seasonality and Weather

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

Aug 23, 2026 - Propane For Energy Resilience

• Growing concerns about grid reliability, rising electricity costs, and severe weather are creating new opportunities for fuel oil and LP gas dealers to expand propane sales for backup and on-site power generation, according to LPGas magazine. Rather than simply supplying fuel, propane retailers can add value by helping customers assess their energy needs, select generators, size storage tanks, plan fuel deliveries, and maintain backup power systems. Demand is growing for residential standby generators, commercial backup power, combined heat and power systems, and prime-power applications as more propane-powered equipment becomes available. Propane's ability to be deployed quickly, stored on-site, and scaled to a customer's energy needs makes it an attractive alternative to expanding electric transmission infrastructure. For fuel oil and LP gas dealers, offering energy resilience solutions can diversify revenue streams, strengthen customer relationships, and drive long-term propane demand as homes and businesses seek more reliable power sources.
• The Trump Administration's fiscal year 2027 budget proposal would eliminate funding for the Low Income Home Energy Assistance Program (LIHEAP), a key source of heating assistance for low-income households, Fuel Oil News reports. For fuel oil dealers, the proposal raises concerns because LIHEAP helps many customers pay for heating oil and other home heating fuels during the winter. If funding were ultimately eliminated, dealers could face reduced fuel sales, higher customer payment delinquencies, and increased bad debt expenses, particularly in regions with large numbers of LIHEAP recipients. However, the proposal does not immediately affect the program, as Congress controls federal appropriations and has rejected previous Trump Administration attempts to eliminate LIHEAP, often increasing funding instead. While the long-term outcome remains uncertain, fuel oil dealers will be closely monitoring the budget process because LIHEAP plays an important role in supporting customer demand and payment stability.
• A coalition of state and national energy organizations is calling on congress to support the “Bolstering the Northeast Home Heating Oil Reserve Act” (HR 6933), the National Energy & Fuels Institute reports. The Trump administration has proposed eliminating the Northeast Home Heating Oil Reserve (NEHHOR), which opponents argue would increase supply risk and price volatility for fuel oil dealers. The bill’s supporters say the reserve serves as a critical backup supply in a region heavily reliant on imported distillate fuel and with limited local refining capacity. Without it, fuel oil dealers would face greater exposure to supply disruptions caused by extreme weather or global events, such as instability in the Persian Gulf. For fuel oil dealers, this could lead to tighter inventories, higher procurement costs, and increased difficulty meeting peak winter demand. Price spikes could strain customer relationships and reduce demand if heating becomes unaffordable.
• Employment by fuel oil dealers grew 1.5% in June compared to a year ago, while average wages at gasoline stations and fuel dealers inched up 0.3% over the same period to $18.64 per hour, easing from winter highs, 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 months. Sales for fuel dealers increased in the first half of 2026 compared with the first half of 2025 driven largely by higher fuel prices rather than stronger underlying volume, according to the Census Bureau. Petroleum and heating-fuel prices surged during the first half of 2026 amid Middle East supply disruptions, raising the dollar value of fuel-dealer sales.

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.