ACF stores checkbox fields hold an array and these are stored in the database as serialized data so testing the value being = to one of your checkbox values will not work.
Something like this might work:
$args = array(
'post_type' => 'oil-products',
'orderby' => 'title',
'order' => 'ASC',
'post_per_page' => 40,
'meta_query' => array(
array(
'key' => 'type',
'value' => 'Household'
'compare' => 'LIKE'
)
),
);
$loop = new WP_Query($args);