Fragrance oils, also known as aroma oils, aromatic oils, and flavor oils, are blended synthetic aroma compounds or natural essential oils that are diluted with a carrier like propylene glycol, vegetable oil, or mineral oil. Fragrance oils are manufactured oils developed for their pleasant scents. Fragrance oils are not to be confused with essential oils. Fragrance oils, also called burning oils or perfume oils, can be used in crafting, home scenting, perfumes and anytime you want to create a pleasant smelling environment.