Hilchos Chanukah / Kindling the lights (q) – 24

1. All types of oil are acceptable for the Chanukah lights [as long as it can sustain a flame], but the ideal oil for the mitzvah is olive oil. One who does not have olive oil should choose an oil that burns steadily and brightly (Shulchan andMishnah Berurah 673).

2. It is permissible to kindle wax candles, but it is preferable and considered a greater mitzvah to kindle oil, since the miracle occurred with oil (ibid.).