How much does oil tank replacement cost?
How much does oil tank replacement cost?
$1,200 – $3,300 average basement oil tank replacement cost
$1,200 – $3,200 average above-ground oil tank replacement cost
$1,600 – $4,600 average underground oil tank replacement cost
Oil tank replacement cost
Oil tank replacement costs $1,200 to $4,600 on average, depending on tank size, material, and location. New oil tank prices are $300 to $9,700, not including installation. Replacing an above-ground or basement oil tank costs less than an underground storage tank. Most home fuel tanks are 275 gallons.
| National Average Cost | $2,400 |
|---|---|
| Minimum Cost | $400 |
| Maximum Cost | $6,500 |
| Average Range | $1,200 to $4,600 |
*Cost data is from research and project costs reported by HomeGuide members.
Cost to replace an oil tank by home location
Replacing an oil tank costs $1,200 to $4,600, depending on location and accessibility. Oil tanks in the basement or above ground are easier and cheaper to replace than underground tanks.
| Tank type | Average cost |
|---|---|
| Above-ground oil tank | $1,200 – $3,200 |
| Underground oil tank | $1,600 – $4,600 |
| Basement oil tank | $1,200 – $3,300 |
Cost to replace an oil tank in the basement
Replacing a basement oil tank costs $1,200 to $3,300. A basement tank does not require pouring a concrete pad or digging, but labor costs may be higher if the basement is difficult to access or if fill lines must be installed or updated.
Above-ground oil tank replacement cost
Above-ground oil tank replacement costs $1,200 to $3,200. Above-ground tanks are typically installed on a concrete pad, increasing the installation time and cost. However, this type is easier to fill and replace than a basement or underground tank.
Underground oil tank replacement cost
Underground oil tank replacement costs $1,600 to $4,600. Replacing an underground oil tank costs more than other types due to the risk of oil leaking into the ground below and the extra labor required to bury or excavate the unit.
Consider replacing an underground oil tank with an above-ground or basement tank if space allows. A leaking underground tank can cause hazardous contamination to the soil and the home’s drinking water. Many homeowners insurance policies do not cover the cleanup or remediation costs.
New oil tank prices by gallon
New oil tank prices are $300 to $9,700 for the unit alone. Double-walled tanks cost more but last longer and are less susceptible to corrosion. A 275-gallon oil tank—the most common residential size—costs $800 to $1,900 for single wall or $1,200 to $4,600 for double wall.
| Capacity | Average cost (single wall) | Average cost (double wall) |
|---|---|---|
| 100 – 250 gallons | $300 – $2,200 | $900 – $3,800 |
| 250 – 500 gallons | $1,000 – $2,100 | $1,200 – $5,300 |
| 500 – 700 gallons | $1,000 – $4,900 | $3,000 – $8,500 |
| 1000+ gallons | $2,800 – $5,200 | $5,100 – $9,700 |
Replacement oil tank installation cost factors
| Factor | Average cost |
|---|---|
| Labor and equipment cost | $600 – $1,200 |
| Oil pumping and disposal | $50 – $150 |
| Old oil tank removal and disposal | $250 – $600 |
| Concrete pad | $50 – $175 |
| Soil testing | $250 – $550 |
| Fill dirt | $150 – $600 |
| New fuel lines | $15 – $20 |
The following factors affect the cost to install or replace an oil tank:
Tank size and condition – Tanks that are underground, leaking, corroded, or larger than average require more care and time to replace.
Single wall vs. double wall tank – Single wall tanks cost less but require a second containment method, such as epoxy-coated concrete or a tank tub. Double-walled tanks cost more but contain two layers and a sensor that detects leaks.
Tank material – Most modern oil tanks are made of steel with a plastic coating or fiberglass. Older tanks without a coating are more susceptible to rust and corrosion.
Installation location – Above-ground tanks are the simplest to install and replace. Labor costs increase if a basement is hard to access or the tank is underground.
Concrete slab – A concrete slab costs $4 to $8 per square foot or $50 to $175 total and is required for above-ground tanks in most building codes. Pouring and setting concrete typically takes 72 hours.
Fuel line – Fuel line units cost $15 to $20. Many metal fuel lines are no longer up to code and should be replaced with new, flexible lines.
Tank tub – A tank tub, or enclosure, costs $600 to $1,200 and prevents contamination from potential leaks. Some insurance companies require tank tubs for installation or replacement.
Old tank removal – Old oil tank removal costs $400 to $3,400, depending on the tank size and location.
Permits – Oil heating permits cost $30 to $160 depending on location and are often issued by local agencies or fire departments.
Inspection – A standard furnace inspection costs $70 to $130.
New oil furnace – An oil furnace replacement costs $2,500 to $6,000 and lasts 15 to 25 years on average.
Landscaping – Landscapers charge $0.90 to $1.80 per square foot to install new sod after replacing an outdoor tank.
Fill dirt – When replacing or removing an underground tank, fill dirt costs $5 to $25 per yard or $150 to $600 on average.
Cost to repair or replace oil tank parts
Oil tanks often need to be replaced when damaged to prevent costly remediation. However, maintenance and minor part replacements may extend the tank’s lifespan.
Part replacements – An oil tank gauge replacement costs $30 to $150 for the part alone. New oil filter prices are $20 to $100.
Regular cleaning – A furnace cleaning costs $70 to $300, depending on its condition and location.
Maintenance – An oil furnace tune-up costs $100 to $200 and includes a filter replacement, minor cleaning, and general inspection.
Clogged lines – Cleaning underground clogs from oil lines costs $200 to $1,000 on average.
Cost to remove an oil tank and furnace
Removing an oil tank costs $400 to $3,400 and is recommended if the tank is leaking, not producing enough heat, or is over 15 years old. Contractors pump out any remaining oil, disconnect the tank, and transport it to a disposal service.
Oil tank contamination soil testing costs $250 to $550 and confirms whether oil has leaked into the ground.
Oil contamination costs $2,500 to $17,000 to remediate and is a serious health hazard.
Removing a furnace costs $150 to $400, while furnace replacement costs $2,000 to $5,400.
Frequently asked questions
How long does an oil tank last?
An oil tank lasts 15 to 20 years on average, depending on the material and location. Outdoor tanks last 10 to 15 years, while indoor tanks last 20 to 30 years because they are not exposed to the elements. Tanks made with fiberglass or plastic last longer than pure steel tanks.
When should I replace my oil tank?
An oil tank may need replacing when it:
Leaks
Is 15 years or older
Produces less heat than usual
Is rusted, dented, or corroded
The oil tank needs an inspection or repair if it has:
Clogged pipes
Split or cracked oil lines
Uneven or unstable legs
A faulty vent alarm or fuel gauge
How long does it take to replace an oil tank
Replacing an oil tank takes 4 hours to 1 day on average. Above-ground and basement tanks take less time to replace than underground tanks.
Getting quotes from oil tank replacement companies
Before hiring a oil tank replacement contractor near you, make sure to:
Read company reviews on HomeGuide and Google.
Look for companies certified by North American Technician Excellence (NATE) or the American Society of Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE).
Choose licensed, insured, and bonded contractors with 5+ years of experience.
Compare tank replacement quotes from at least three different companies.
Remember, the lowest bids typically signal low-quality work.
Get written copies of project estimates, permits, contracts, and warranties.
Confirm the estimate includes all material, labor, and equipment costs as well as the installation schedule.
Create a payment schedule instead of making full payment upfront.
Questions to ask
How long have you been installing oil tanks?
Can I see references from your previous installs?
What certifications do you have?
Are all labor and materials fees included in this estimate?
Considering my average heat use, how often will I need oil tank refills?
Do you offer an auto-fill service for my oil tank to monitor my supply for me?
Does the line from my oil storage tank to the furnace need replacing?
How long will the project take?
Does the estimate include removing all debris afterward?
Does this tank installation meet all local building codes?
Will you obtain all necessary permits and manage inspections?
What does your warranty policy cover?
What is the payment schedule for this project?
What financing options do you offer?