How To Find The Cheapest Heating Oil Prices
There was an 82% increase in the price of a litre of heating oil between August 2021 to August 2022. Ouch! That’s a huge increase, however, since it peaked in June 2022 to £1.11 per litre, it has come down to between 65 to 80 pence per litre depending on how much you order and how quick you want it.
In this guide, we will be:
Explaining what heating oil is.
What are the average heating oil prices in the UK
How you can save on heating oil prices
How much heating oil should you use per year
If you have an older oil boiler that is inefficient, you could be using a lot more heating oil and might want to consider replacing your oil boiler for a more efficient one.
What Is Heating Oil?
Heating oil is the name used for heating applications in central heating systems. There are two types of heating oil – gas oil and kerosene. Gas oil is generally for commercial and agricultural use. Kerosene (also known as home heating oil or 28-second oil) is a lighter oil that is used in domestic homes.
Heating oil is produced from petroleum. Through a process of heating crude oil to high temperatures in a fractionating column, many fuels can be made. Heating oil condenses around 250 °C and 350 °C.
Average Heating Oil Prices in UK
According to the Office of National Statistics, heating oil prices peaked in June 2022 at £1.11 per litre but presently average around 80 pence per litre. This can vary depending on how much heating oil you order or if you need an emergency delivery. Looking at the chart from the ONS back as far as 20112, it shows that heating oil prices have fluctuated quite a bit until now.
Click on the link here for more information on long term heating oil prices.
How You Can Save £££ On Your Heating Oil
With the price of heating oil still relatively high compared to 2021, it is more important than ever to find ways to save some hard earned money. There are a few ways that you can save and they are listed below:
1. Always buy ahead if you can, waiting longer for your order to arrive will usually cost you less. If you let your tank run low, express or emergency deliveries are an option but these come at a premium price.
2. Try and buy heating oil in the summer months as the demand for heating oil is lower than in the winter months. For example, before the sharp increases in oil prices in 2022, a litre of heating oil cost 35 pence in July 2020 and in February 2021 the same heating oil cost 46 pence per litre.
It is prudent to keep an eye on the heating oil prices as they do fluctuate quite a bit. If you are located in Scotland you can get estimates online from Fuel Tool but it is best to search for a local company to get a fixed price.
Try to avoid buying heating oil in the winter as you’ll most likely pay more as well as encountering potential delivery problems in bad weather conditions.
3. Bulk buy heating oil. As with most things in life, buying in bulk will get your goods cheaper. If possible set up a heating oil club with your neighbours as this can quite often be an even cheaper way to save £££ on your heating oil prices.
If you are not able to set up a club with neighbours, try and negotiate a deal with a local supplier to get a fixed price for your annual heating oil useage.
For example, if you know that you use 2,000 litres per year and are prepared to pay for the total amount upfront, it might be possible to get your rate fixed at the present heating oil prices.
This could potentially save you some money!
4. If you have an old inefficient boiler, it might be time to have it replaced with a much more efficient new oil boiler. A new A rated oil boiler could save you between 20 and 30% on your heating bills.
Considering the cost of heating oil in 2023, replacing your old inefficient oil boiler could well end up saving you a lot of money over a number of years.
If you need a new A rated oil boiler and would like a quote, click here.
How Much Heating Oil You Should Use Per Year
There are a number of factors that will dictate how much heating oil you will use on an annual basis. It is estimated that the average household will use around 2000 litres of heating oil each year. See below for more details:
1. You can start by tracking your useage for a year and this will give you a good idea how much heating oil you need to have delivered on an annual basis and allow you to budget your costs accordingly.
2. Another factor would be the weather. If it’s a colder winter than normal, you will use more heating oil. Some parts of the country don’t get it quite so cold as others.
For example in the south of England it is normally quite a bit warmer than the highlands of Scotland. Expect to use quite a bit more heating oil the further north you are located.
3. Household Behaviour. Some people get colder than others and turn the heating on for longer periods. This will lead to an increase in annual heating oil useage. The size of house and number of occupants will also play a bit factor on your annual usage of heating oil.
4. Boiler efficiency is another big factor on how much heating oil you will use each year. Old inefficient boilers generally use between 20 to 30% more on energy than new condensing oil boilers.
This could be a massive savings if you choose to replace the old oil boiler for a new and much more efficient oil boiler.
It is important to have your boiler serviced annually. A poorly maintained oil boiler will not only burn incorrectly but lead to higher heating oil prices as well as expensive repairs.
This should be carried out by a qualified heating engineer who will check to ensure the boiler is burning correctly as well as clean out the heat exchanger and burner and replace any parts that are needed.
5. A poorly insulated home will have more heat loss and therefore use more heating oil than a well insulated home. It might be worth upgrading your home insulation to ensure that you help to reduce your heating bills.
We hope that you got some value from reading this blog and are able to make some savings on your heating bills in the future. We would appreciate if you could share this on your social media with friends and family that also have oil fired heating systems. If you need an oil boiler service, click here.
Heating Oil Prices