Getting the best heating oil prices

Heating oil prices change regularly. But if you have to frequently buy it to heat your home, there are some ways to save. Read on for our eight tips on how to cut your heating oil costs. 

The price of kerosene heating oil remains high at around 78p per litre. It has dropped since the pricing peak of 99p in July 2022 but has been rising again since June 2023.

Heating oil prices are largely affected by the price of crude oil. This can change depending on:

• The weather (especially if extreme)
• Political unrest
• Global production
• US dollar exchange rates

Prices can also vary depending on where you live in the UK, the time of year you buy the oil, local demand and the amount of heating oil you purchase.

How much does heating oil cost?

The average price per litre of kerosene of around 78p in December 2023* is much higher than it was during 2020, which saw the lowest heating oil prices for more than four years. Prices in 2020 were low following the collapse in demand for heating oil owing to the ongoing impact of the Covid-19 pandemic. 

The current prices are still higher than they were in 2018 and 2019 when a litre of heating oil tended to cost between 45p and 55p.

You'll also need to factor in delivery costs, which can differ depending on how far you live from the supplier you get your oil from.

Are heating oil prices going up?

Heating oil prices generally rose between January 2016 and October 2018, then hovered around 50p per litre until January 2020. Prices dropped suddenly in 2020 before rising sharply again in 2022 as a result of increased global demand for oil and gas.

It is tricky to predict what will happen to prices in the future. Although we've seen prices fall during the summer in previous years, this isn't something to entirely rely on given the current volatile nature of the energy market.

No matter what happens to the price of heating oil, there are still things you can do to keep the costs down. 

Looking for ways to combat the rising cost of living? Ease the squeeze with our money-saving advice.

Compare heating oil prices

Heating oil prices vary across the UK and between different companies. It’s best to compare as many quotes as possible from different suppliers, and to do so regularly so you can monitor when and where you can get the best prices. 

You can get free estimates from online companies such as Boiler Juice and Heating Oil, but suppliers such as these only provide guide prices for customers. To get precise figures, it's best to check with as many local and online companies as possible once you've decided to make a purchase.

It's a good idea to do a quick online search for reviews or complaints about a company before you buy too. 

In addition, the UK and Ireland Fuel Distributors Association (UKIFDA) directory lists suppliers in your area. It is the trade association for distributors of liquid fuel and provides consumer information about heating oil.

If you're not sure about a supplier, contact the UKIFDA at info@ukifda.org. 

8 ways to get the best home heating oil prices

Use our tips below to avoid paying more than you need to for your heating oil: 

1 Buy ahead of time

If you can plan and buy ahead, waiting longer for your order to arrive will usually cost you less. Should you need heating oil in a hurry, express or emergency deliveries are an option but these come at a premium price.  

2 Buy heating oil in summer

Prices for heating oil can be a bit lower during the summer, as demand tends to be a lot lower. But don't expect the dramatic summer price drop we saw in 2020, which came because of the impact of the coronavirus pandemic on global oil prices. 

It’s wise to keep an eye on heating oil prices in general, as prices do fluctuate. For example, in 2018 it was cheaper in winter than in spring and summer (48p in January 2018 and 52p in April and July 2018), while in 2019 prices fluctuated slightly but were at their cheapest in April.  

Not buying in the depths of winter also means you'll avoid potential delivery problems in bad weather. 

People tend to buy around two or three times a year – depending on the size of their tank and energy use – and order between 1,000 and 2,000 litres. 

No matter when you order, it's important to keep an eye on your oil tank gauge. Don't let it get too low before you order more heating oil – especially in winter. Most companies will recommend a level at which you should order more, but generally you should start making plans when your tank gets to around 25% full. 

3 Bulk buy heating oil

The size of your tank affects how much heating oil you can store, and therefore how much you can order in one go. Generally speaking, the more you order, the cheaper it will be. 

The average size of domestic heating oil tanks ranges between 1,000 and 3,500 litres. A heating oil tank should only be filled up to around 80-90% of its capacity, to avoid spillages.

Joining a heating oil club (also called a heating oil buying group) free of charge is a cost-efficient way to buy cheaper heating oil. This is because your order will be clubbed together with others in your area. 

You can find information on heating oil clubs in your area by searching online, or you can look for websites that combine regional oil clubs together to increase orders even further, such as The Oil-Club.

Citizens Advice estimates that buying this way can knock 10% off your heating oil bills. 

4 Start a heating oil club

Alternatively, you could start your own oil club with neighbours, friends and family. 

Bear in mind how close together you live, and whether the volume you want to order is likely to exceed the amount the size of tanker that can deliver to your area can carry (5-23,000 litres). Above this, you’re less likely to get a discount, as the supplier will need a second vehicle. 

You'll need to appoint a coordinator to contact oil companies and negotiate a price. You could use local services, such as the Post Office, village hall or local social media sites to advertise for more members if required.

Remember that the more you order, the more you have to lose if it's stolen. Find out how to protect your tank against theft in our guide to heating oil tanks.

5 Negotiate the price

Whether buying in bulk with a club or on your own, don't be afraid to negotiate, as companies will expect it. 

The more quotes you have, the more information you will have to bargain with, so always get quotes from a few companies that you can then use to help you haggle.  

6 Be careful how you pay

When you set up payment for your heating oil, check whether paying by direct debit will lock you into a contract.

A contract isn't necessarily a bad thing. In some agreements the supplier will also monitor the amount of heating oil in your tank and automatically arrange to top it up for you. On the other hand, being locked into a contract doesn't give you the flexibility to shop around for a better price. Most suppliers will let you cancel at any time, however.

7 Protect and maintain your tank

Heating oil is pricey, so safeguarding it against theft and leakage can save you money in the long term.

Servicing your heating oil tank and boiler once a year using an Oil Firing Technical Association (Oftec)-registered technician will alert you to any problems before they get worse, and it will protect against more costly faults.

8 Get an efficient oil boiler

The efficiency and age of your boiler affects how much money you spend, so make sure it's in working order by getting it serviced annually. If you have a very old or inefficient model, an upgrade may save you money in the long term.

According to oil industry advice, you could save hundreds of pounds a year if you change to a modern condensing boiler that has up to 97% efficiency, compared with a model that's more than six years old. But a new oil boiler will cost anywhere between £1,300 and £3,500, and you'll need to fork out between £500 and £3,500 for installation.

Before you get a new boiler you need to know which brands are the most reliable. Read our guide to the best oil boiler brands.

How to cut your energy bills

As well as getting a good price for heating oil, you can minimise the amount you use (and therefore the money you spend) by cutting your energy costs. Take a look at our full guide to how to save on your energy bills. 

Options include:

• Making your home more energy efficient
• Installing or topping up loft insulation
• Combining oil heating with renewable energy .

*Average prices for a litre of kerosene from Sutherland Tables, which collects domestic fuel pricing data from across the UK for each quarter of the year.