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How much does oil-fired heating cost compared to mains gas?

Discover how much oil-fired heating costs compared to mains gas and understand the factors that affect the price difference.

What determines your heating system type in the UK?

In the UK, the type of heating you use often depends on your location and local infrastructure. Homes in rural or off-grid areas usually rely on heating oil, while more urban areas are connected to the mains gas grid.

As these systems are tied to existing infrastructure, households can’t easily switch between oil and gas. In most cases, your heating setup is determined by the type of fuel available in your area rather than personal choice.

Understanding how heating oil prices compare to mains gas costs helps homeowners determine if they’re getting good value for money. By monitoring fuel efficiency, price trends, and supply availability, you can make smarter energy choices, plan for seasonal cost changes, and manage your home heating budget more effectively.

How do prices compare between oil-fired heating and mains gas?

Heating oil prices fluctuate based on global markets, while mains gas prices usually remain more stable. For rural or off-grid homes, oil-fired heating still provides excellent value when you compare live prices through BoilerJuice and order when rates are low. Regular monitoring of prices helps maximise savings and manage seasonal energy costs more efficiently.

Average oil-fired heating prices (based on BoilerJuice)

  • Data source: BoilerJuice average prices
  • Fuel type: Heating oil (kerosene)
  • Average unit price (as of today): 58.16 pence per litre
  • Daily standing charge: None
  • Estimated total annual heating cost: £700-£1,050 (based on typical home consumption) 
  • Price stability: Unregulated, fluctuates

Average running costs for homes heated by mains gas (Ofgem)

  • Data source: Ofgem energy price cap
  • Tariff type: Standard variable tariff (Ofgem)
  • Average unit rate: 6.34 pence per kWh for mains gas
  • Daily standing charge: 31.65 pence per day
  • Estimated annual heating cost: £850-£1,100 per household (based on typical domestic consumption)
  • Price stability: Regulated by Ofgem

What are the advantages and disadvantages of oil-fired heating and mains gas?

Both oil-fired heating and mains gas systems have their pros and cons for UK homeowners. Oil-fired heating provides flexibility for rural and off-grid properties, delivering powerful heat output and allowing you to have greater control over fuel storage and ordering. However, it can require more maintenance and is affected by fluctuating heating oil prices.

In contrast, mains gas heating supplies consistent energy through the national gas grid, typically with lower running costs and minimal upkeep. The main limitation is availability, as mains gas is typically only accessible in urban areas. Homes in rural or off-grid locations often don’t have access to the gas network.

Ultimately, the choice between oil-fired heating and mains gas depends on your location, energy efficiency, and long-term heating costs.

System Type Advantages Disadvantages
Oil-fired heating
  • Ideal for rural and off-grid homes.
  • Potential for bulk-buy savings when prices drop.
  • Delivers strong heat output for large properties.
  • Can switch to renewable HVO fuel with minimal system changes.
  • Subject to price fluctuations in oil markets.
  • Requires an on-site storage tank and regular maintenance.
  • Higher upfront installation and servicing costs.
  • Produces more carbon emissions than mains gas.
Mains gas
  • Lower running costs than oil.
  • Reliable, continuous supply through the National Grid.
  • Minimal maintenance and no need for fuel storage.
  • Widely available in urban and suburban areas.
  • Unavailable in many rural areas.
  • Connection or upgrade costs can be high if not already linked.
  • Dependent on gas suppliers and tariffs.
  • Still a fossil fuel, contributing to carbon emissions.

What is a standing charge on your gas bill?

A standing charge on your main gas bill is a fixed daily cost that covers the maintenance of your gas supply and network connection, regardless of how much energy you use. According to Ofgem’s price cap for October to December 2025, the average charge is 34.03 pence per day for customers who are on the national gas grid paying by direct debit. While small, these charges add up over time and can impact your total gas heating costs.

How long does heating oil last?

A full tank of heating oil typically lasts between 6 and 12 months, depending on tank size, home insulation, and heating usage. Usage tends to increase during colder months, especially in rural parts of the UK.

Home Size Estimated Annual Oil Usage (litres) Notes
Small home (1–2 bedrooms) 1,000–1,500 litres Light usage or well-insulated property
Medium home (3–4 bedrooms) 1,500–2,500 litres Average family home with regular use
Large home (5+ bedrooms) 2,500–4,000+ litres Higher consumption, larger heating demand
Choosing between two properties and can't decide which fuel type is right for you?

Choosing between oil-fired heating or main gas depends on your home's location and energy needs. Main gas offers cheaper running costs and minimal maintenance for on-grid homes, while oil-fired heating provides flexibility and fuel control for rural or off-grid properties.

What is the future of sustainability for oil-fired heating?

The future of home heating is cleaner, smarter, and more sustainable. Hydrotreated Vegetable Oil (HVO) is transforming traditional heating oil with a renewable, low-carbon alternative that can cut emissions without costly system changes.

Alongside this, more households are turning to solar panels to harness natural energy and reduce reliance on fossil fuels. Together, HVO and solar power offer a practical path towards a greener future, helping homes stay warm efficiently while protecting the environment.

Still have questions?

What happens if I run out of heating oil?

You'll need a refill delivery before restarting your boiler. Many homeowners now use smart monitoring systems like BoilerJuice Connected - which automatically reorders oil when you're running low, so you never run out.

What if my home isn't connected to the gas grid?

If your property isn't on the mains gas network, oil-fired heating is one of the most reliable and widely available options. It gives you control over your fuel supply and delivery- ideal for rural or off-grid homes.

How often should I service my oil boiler?

It's recommended to service your oil boiler once a year. This keeps it running efficiently, ensures safe combustion, and can help spot small issues before they become expensive repairs.

How do I know if I can connect to mains gas?

You can check online using your postcode or contact your local gas distribution network . If there's no connection nearby, oil-fired heating will likely be the more practical and affordable choice.

Do I need a tank for oil heating?

Yes — heating oil is stored in an external tank on your property. Many modern tanks are double-skinned for safety, and you can add our smart gauge to your tank to monitor your oil levels easily and avoid running low.

Thousands of happy customers use BoilerJuice to get the cheapest heating oil