Generic Fuel Tank for Home Heating Oil
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Home Heating Fuel Tank Installation & Replacement Prices

Last Updated: December 11, 2023

Fuel tanks, otherwise known as home heating fuel tanks or fuel oil tanks, typically last around 15 to 30 years.

Although fuel tank installation is not the cheapest project, the cost of a leaking tank that that causes environmental damage can be far pricier.

Because of this, if your fuel tank is at least 15 years old and an inspection shows problem, you'd be wise to replace it. This buying guide explores how much that might cost you in addition to providing basic information about fuel storage tanks.

Fuel Tank Installation Cost #

Installing an above ground or underground fuel tank for oil, propane or gasoline typically costs:

Above Ground Tank

  • 250-500 gallon tank: $900 - $1,800
  • 1,000 gallon tank: $1,500 - $3,000

Underground Tank

  • 250-500 gallon: $2,000 - $4,500
  • 1,000 gallon capacity: $3,000 - $6,000

Additional Costs

  • Excavation fees: $800 - $5,000
  • State permits: $50 - $150
  • Fuel gauge/monitor: $75 - $250


  • Annual inspection fee: $150 - $300
  • Cleaning every 5-10 years: $400 - $1,200

Underground tank installation costs significantly more due to required excavation equipment, specialized labor, and complicated vent and anchor systems. Get quotes from at least 3 pros in your area.

Oil Tank Installation Cost

Real-World Fuel Tank Installation Costs #

Here are some real-world quotes from homeowners on how much they paid to have fuel tanks installed on their properties:

  • "I had a 1,000 gallon in-ground propane tank installed. With the tank, burial permits and lines to the house it was $5,800 total." - Thomas S., Virginia

  • "I opted for an above-ground dual 550 gallon diesel and gasoline tank setup. Delivered and installed on a concrete pad the total was $2,300." - Sabrina D., Oklahoma

  • "Needed a buried 400 gallon oil tank and lines run 150 feet to the house. Between excavation equipment fees and install I paid $3,900." - Greg P., Maine

  • "I went with a small 120 gallon gasoline UST to fuel equipment in my workshop. The install with leak prevention systems, backfill and permits was $2,850." - James B., Wyoming

  • "Had to get a 1,000 gallon propane tank installed, integrated with the house system and screened discreetly. Total buried install cost was $4,600." - Michelle K., Alaska

As you see, fuel tank installation costs typically range from $900 up to $6,000+ depending on size, type (above ground vs underground), site access, required offsets and integrating any delivery lines or supply hookups to structures. Permitting also adds to budgets.

What You Should Know About Fuel Tanks #

Below is some information about heating fuel tanks that prospective buyers should find helpful:

  • Aboveground vs. underground: The two basic types of heating fuel tanks are aboveground and underground. Aboveground fuel tanks typically hold 275 or 330 gallons. While they may take up space in your home, they are easier to install, repair, and remove. Underground fuel tanks are larger, able to hold around 500 to 1,000 gallons, but are more expensive to remove, install, and inspect.

  • The cost of an oil leak: Although heating oil doesn't pose a significant explosion risk, the consequences of a leak, especially in an underground tank, can do serious damage to your wallet (not to mention the environment). Underground fuel tank leaks could easily cost $5,000 to $10,000 to repair, and spending $20,000 to $100,000 or more is not unheard of.

  • Preventing leaks: The number one cause of fuel tank leaks is corrosion, which is caused by water. If you have an outdoor tank, then, you'd be wise to protect it from the elements by building an "oil shed" or similar enclosure. And especially if your tank is 10-15 years old, you should be on the lookout for signs of leaking, such as:

  • Oil running out faster than normal

  • Furnace/water heater not working properly

  • Oil stains (aboveground)

  • Dead vegetation (underground)

  • Tank fittings and lines not clean and tight

If any of these telltale signs of fuel leakage are present, it could very well be time to install a new fuel tank.

Use Our Free Service and Find Fuel Tank Companies Near You #

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