Plenty of folks run Dana Glo or similar wick style kerosene heaters like Dyna Glo, Sengoku, etc. at cabins and regularly burn #1 diesel or kerosene diesel mixes as a cheaper alternative especially in Alaska where kerosene hits $17 gallon like you said.
#1 diesel works fine burns clean enough, similar heat output, no major wick clogging or excessive soot if ventilated well. Many prefer it over #2 diesel thicker, more soot smell, harder starts in cold.
Common tweaks Add 10–20% isopropyl alcohol or a diesel anti gel additive to improve ignition and reduce odor soot. Run it outdoors first to burn off initial fumes.
Issues Slightly more smell odors than pure kerosene, occasional wick blackening clean weekly, and potential CO buildup if not vented always crack a window. Not as odor free as K-1, but way cheaper and reliable for cabin use.
Safety note Stick to #1 diesel not #2 off road dyed for cleaner burn and less gelling in sub zero temps. Never use gasoline or other fuels.
If your Dana Glo is a wick convection model not forced air, #1 diesel is the go to swap many Alaskans do it without drama. Test a small tank outdoors first. Worth the savings if you're burning a lot. How cold does your cabin get any gelling worries?