Cement industry is an energy and emission intensive process. The demand of cement usage is rising year by year, leading to increased fuel requirements and environmental concerns. Increasing fuel requirements becomes alarming due to increase in fuel prices at international level. The primary goal of this research endeavor is to burn used transformer oil as a substitute fuel source in kiln operations and assess its impact on both fuel expenses and environmental emissions. The improper disposal of used transformer oil poses environmental hazards due to the presence of Polychlorinated Biphenyls (PCBs). Prolonged exposure to PCBs can result in adverse health effects in humans, including nervous system disorders, weakened immune function, and the development of cancers in the digestive tract, liver, and skin. Consequently, utilizing used transformer oil as an alternative kiln fuel in the cement industry would serve the dual purpose of reducing fuel costs and mitigating the release of PCBs into the environment. The study found that burning 20% used transformer oil in cement kilns reduced particulate matter and carbon monoxide by 42% and 26%, respectively, compared to imported coal. Fuel cost also reduced by 947 PKR/ton of clinker. The research highlights that using the used transformer oil as an alternative fuel could be economically viable and cleaner solution.