The oil used in transformers is called **transformer oil** or **mineral oil**. It is primarily used for two main purposes:
1. **Insulation**: Transformer oil helps to insulate the internal components of the transformer, preventing electrical short circuits and breakdowns.
2. **Cooling**: It absorbs the heat produced during the transformer’s operation and helps to cool down the transformer, ensuring that it does not overheat.
In some cases, **silicone oil** or **vegetable-based oils** are also used, especially in environmentally conscious or high-performance applications. However, mineral oil remains the most commonly used type due to its cost-effectiveness and efficient properties.