Massachusetts homeowners who bought heating oil from Peterson Oil (including Cleghorn Oil, Cape Discount Fuel, and others) between 2012 and 2025 may be eligible for cash payments after a judge gave preliminary approval to a $14 million class action settlement over excessive biodiesel that allegedly damaged furnaces and boilers.
Worcester Judge Approves $14M Settlement in Peterson Oil Biodiesel Lawsuit
Worcester, MA – November 2025 – On November 13, 2025, a Suffolk Superior Court judge granted preliminary approval to a $14 million class action settlement resolving claims that Peterson Oil Service, Inc. blended too much biodiesel into its home heating oil, causing corrosion, clogged filters, burner failures, and expensive repairs across Massachusetts and parts of New England.
The settlement is primarily funded by Peterson Oil’s insurers, which plaintiff attorneys say made the $14 million deal possible despite the company’s disputed financial condition.
Key Settlement Details (2025 Peterson Oil Biodiesel Case)
| Detail | Information |
| Total Settlement Amount | $14,000,000 |
| Amount for Consumers | ~$8.2 million after attorney fees & costs |
| Who’s Eligible | Anyone who purchased heating oil from Peterson Oil or its subsidiaries from Jan 1, 2012 – Nov 12, 2025 |
| Claim Filing Deadline | February 11, 2026 |
| Final Approval Hearing | January 2026 |
| Official Claim Website | petersonoilclassactionsettlement.com |
| Brands Included | Peterson Oil, Cleghorn Oil, Cape Discount Fuel, and others |
What the Settlement Covers
- Out-of-pocket repair and replacement costs
- No-heat emergencies and inconvenience payments
- Damage from high-biodiesel blends (gelling, corrosion, sludge)
How to File a Claim (Step-by-Step)
- Visit petersonoilclassactionsettlement.com
- Use the Claim Form lookup tool (notice postcards are being mailed)
- Submit proof of purchase or delivery (if available) by Feb 11, 2026
- No proof required for smaller inconvenience claims
Background: Why Customers Sued Peterson Oil
- Customers expected standard #2 heating oil
- Peterson allegedly used high-percentage biodiesel blends (sometimes B50–B100) without clear disclosure
- Excess biodiesel caused premature failure of tanks, lines, burners, and boilers, especially in cold weather
- Lawsuit filed in 2019 → certified as class action in 2022 → now settled in 2025
This is the second major settlement for Peterson Oil — a previous $5.6 million partial settlement was approved in 2024 for 2016–2019 claims.
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Don’t miss the deadline — file by February 11, 2026 to get your share of the $14 million fund.
Official Settlement Site: https://www.petersonoilclassactionsettlement.com
Case Name: Marandino et al. v. Peterson Oil Service, Inc. (Suffolk Superior Court)
Tags: Peterson Oil settlement, $14 million biodiesel lawsuit, heating oil damage claim Massachusetts, Peterson Oil class action 2025, Cleghorn Oil settlement, Cape Discount Fuel biodiesel, file claim by Feb 11 2026, furnace damage biodiesel Massachusetts