Yes, our house is heated by kerosene. I've never been too happy with the situation but our house is about 17 years old and doesn't have the fancier heating systems. Actually 17 years old doesn't seem to be so old to me and I know my brother's home in the States has central heating even though it is over 50 years old but anyway, Tetsu and I heat our home by kerosene. When I say, heat our home, I mean, heat each room separately by a portable kerosene stove or two. I either buy kerosene at the gasoline station or have it delivered and put in large 20 liter tanks and then fill the stove tanks by pump. This is a somewhat messy job what with opening the tank, getting the pump to work and then putting the tank back into the stove. The stove's tank of kerosene in the winter will last maybe two days and the process is repeated.
No central heating means that only the room that is being used at the moment is ever warm and let me tell you, the bathrooms and bedrooms are freezing in the winter! Some families put small electric heaters in their bathrooms just to heat the air before you get undressed for a bath, but Tetsu and I brave it (no room for a heater anyway.) I'll let you know when I start wearing a hat and gloves to bed! Some of the newer homes have centrally heated homes with heated floors which I covet but I'm afraid I'm never going to have that luxury as long as this house is standing.
Traditionally, houses in Japan were heated by wood burning stove and I have a memory of attending church and watching the pastor's wife put firewood into the potbellied stove throughout the worship services. However, the most common way for families to stay warm is to sit around a kotatsu in the winter time. A kotatsu is a low table with a heating element attached to the bottom and then heavy futon are spread on top to keep the warmth trapped inside. This means your feet and lower body are warm but the rest of you is sitting out in the cold. When I came to Japan as a college student I stayed in a home where the only heat was the kotatsu. I can still remember huddled in the kotatsu, fairly cozy, and being able to see my breath in the room! Nowadays families will use a combination of kotatsu and other heat. We don't have a kotatsu in our house because our living room is so narrow we wouldn't be able to walk around without stumbling over the futon, though I'm sure Tetsu misses it.
Yesterday, I visited my neighbor and took a picture of her kotatsu which is very nice because it is actually a hole in the floor and the heating element is at the bottom of the hole. This means you don't have to sit on your knees and can sit just like you would around any table. You'll notice Mrs. Yano's cat is down there under the table because it loves the kotatsu's warmth. In fact there is a song in Japan about cats who typically hide out in the warm kotatsu!
"And the cat is curled in a ball inside the kotatsu~~~~!" la-la-la-la~