How Much Does Oil Tank Removal Cost in 2024?

Oil Tank Removal Cost Factors

Tank size and capacity, disposal, and other factors can add to the time and costs associated with removing an oil tank. Your local oil tank removal contractor may factor these costs into their estimates.

Location and Accessibility

An oil tank’s location has a significant influence on its removal costs. Above-ground tanks don’t require excavation and consequently cost less than underground tanks to remove. In general, the easier it is to access and get earth-moving machinery, the less you'll pay.

Tank Size

An oil tank’s size and capacity directly impact the cost of removal, which ranges from $400 to $3,500. Larger tanks are heavier and bulkier, requiring more labor and often specialized machinery to decommission and remove. The size also adds to excavation needs, material disposal, and environmental remediation.

Excavation

The oil tank removal process includes excavation for underground tanks. Excavation contractors charge either $120 to $150 per hour or $50 to $200 per cubic yard, and equipment rental costs $100 to $250 per hour. Fill dirt for the area costs $5 to $15 per cubic yard. 

Small and shallow are easier to access and remove compared to larger or deeper tanks. Deep tanks typically require heavy machinery, such as backhoes and excavators, the rental cost of which may or may not be included in the contractor’s quote.

Soil Testing and Remediation

Oil tanks can leak into the surrounding areas, sometimes without obvious signs, necessitating soil testing and potential remediation. Soil testing costs around $500 to $1,800, and involves digging holes around the perimeter to look for oil seepage or environmental damage and collecting lab samples. 

Remediation, which removes contaminated soil and stabilizes it with new material, costs around $500 to $10,000 depending on the extent of contamination, obstructions, and accessibility.

The risk of leaks increases as oil tanks age and experience corrosion and degradation. Increased heating bills, dying vegetation, dark patches, and other signs suggest leaks, which can cause further damage to the environment and hurt your property value. Even without obvious signs, it’s important to assess the tank’s condition and its immediate surroundings.

Permits and Tests

Local regulations often require permits before proceeding with oil tank removal jobs. Issued by local government offices or fire departments, oil heating removal permits range from $30 to $160. Failed inspections may add to further soil testing costs.

Labor

Oil tank removal is labor-intensive throughout various stages of the process, from site preparation to disposal. Contractors often bundle labor and other costs into a final quote based on their assessment of the duration and complexity of the job.

Leftover Fuel Removal

Leftover oil in the tank is hazardous and must be safely disposed of. Prices vary by town and city, but expect to pay $10 to $70 per pound, including service fees. In most cases, contractors include the cost and responsibility of disposing of the oil tank and its leftover oil in their quotes. 

Oil Tank Removal Costs by Type

Some tanks are buried underground under your home or yard, while others are above-ground. Each type of tank costs a different amount to remove, with those buried underground typically costing more.

Underground Oil Tank

Underground tank removal averages between $1,000 and $3,500. This type of tank requires more excavation than others, and excavation costs can account for up to half of your bill. Prices also vary depending on soil, obstructions, and other accessibility factors.

Basement Oil Tank

Some oil tanks are buried beneath the basement and as such often cost the most to remove. You’ll pay an additional $500 to $1,000 on top of average underground tank removal costs, totaling between $1,500 and $4,500 on average.

Above-Ground Oil Tank

The average cost to remove an above-ground oil tank runs between $400 and $1,800 but can cost up to $3,000 or more. Low-end costs represent either simple jobs or estimates covering only the most basic aspects of the service. Above-ground oil tanks are also usually smaller than underground tanks, averaging around 275 gallons, which is reflected in their comparatively lower removal costs.

Oil Tank Removal Costs by Size

Larger tanks require more time and effort to remove than small tanks. Since they’re more often installed underground, large tanks may also require special equipment and labor-intensive excavation. In general, larger tank sizes equate to increased costs for oil drainage, material disposal, environmental remediation, and permits.

The average two-bedroom home has a 275-gallon tank, while three to four-bedroom homes may have 300 to 500-gallon tanks. See other removal cost averages below.

Oil Tank Abandonment or Decommissioning Costs

Abandonment or decommissioning costs range from $1,000 to $3,000 or more depending on the tank size. An alternative to removal, decommissioning involves cleaning oil and sludge from the tank and filling it. Decommissioning a tank should prevent its eventual collapse and subsidence of the surface above it. The three main filling options are:

• Foam: Foam can reach more areas of the tank than concrete or sand. It’s mixed in a truck and uses a wand at the end of a long hose, so it’s easy to fill in hard-to-reach places, like a basement.

• Concrete slurry: Typically a mixture of various quantities of Portland cement, water, and selected aggregate materials, a concrete slurry is a semi-liquid substance that fills the tank evenly. Its primary advantages are its high density and ease of handling.

• Sand: Sand is a low-cost filler option but is less effective at filling tank voids and connecting lines than foam and concrete slurry.

Removal is generally recommended over decommissioning since it has similar costs. Some tanks are buried under foundation footings or in other inaccessible areas, in which case decommissioning may be a more cost-effective option.

Heating Oil Tank Removal Costs Near You

The average oil tank removal varies between states. See the cost to remove a 550-gallon oil tank by state below.

Other Underground Storage Tank Removal Costs

Other types of underground storage tanks are gas tanks and water tanks. Price differences usually stem from the type of tank, with hazardous materials necessitating more complex removals.

Water or fuel tank replacement costs $1,600 to $4,600 on average. Removing and replacing your old fuel tank with a new one at the same time requires far less work than separate removal and installation jobs.

Gas Tank

The cost of removing an underground gas tank ranges from $1,000 to $3,000 or more depending on size, labor, and other factors. Like oil tanks, gas tank leaks necessitate soil testing and environmental treatment.

Water Tank

Water tank removal costs around $300 to $1,500 or more. Since they don’t contain any hazardous chemicals or fuels, you don’t need soil testing or remediation. It may cost less to leave hard-to-access water tanks in place. If ground stability is a concern, consider filling the tank with concrete or foam.

Budgeting for Oil Tank Removal

Removing an oil tank is a significant project, but careful budgeting helps limit costs. Try these strategies:

• Get multiple quotes: Contact several contractors for quotes to find the best value, and get detailed breakdowns of which each quote includes.

• Review insurance: In some cases, homeowners’ insurance covers partial removal or leak costs.

• Plan for surprises: Pad your budget with 10% to 20% to account for unforeseen costs.

• Bundle services: Multiple projects require a bigger upfront investment, but bundling tasks, such as both oil tank removal and replacement, may present opportunities for discounted rates.

How HomeAdvisor Gets Its Cost Data

No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. After a project is complete, we survey real customers about the costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.