Transformer oil or insulating oil is an oil that is stable at high temperatures and has excellent electrical insulating properties. It is used in oil-filled wet transformers, some types of high-voltage capacitors, fluorescent lamp ballasts, and some types of high-voltage switches and circuit breakers. It functions to insulate, suppress corona discharge and arcing, and serves as a coolant.
Most often, transformer oil is based on mineral oil, but alternative formulations - with different engineering or environmental properties - are growing in popularity.