Furthermore, another manifestation that all home heating oil is not the same is the costs. Kerosene, for one, is considered as the more efficient compared to gas oil. But then again, there is also great emphasis placed on the area where you live and the availability of the type of heating oil in your state or city. Heating Oil Grades. But aside from the two types, heating oil is also differentiated on grades. Home heating oil is a generic term for a variety of fuel formulations and can be a mixture with heavier oil similar to motor oil, which can provide more heat while burning less fuel. While home heating fuel No. 2 is normally used for home heating, other substitutes can include standard road diesel No. 2, diesel No.1, kerosene, jet fuel, agricultural diesel, home heating fuel Oil No. 4, and home heating fuel oil No. 6.