Oil central heating

Around 5% of homes in Great Britain have oil central heating instead of gas central heating as the majority of households have. 

Oil central heating is also much more common for households in Northern Ireland. 

Home with oil central heating aren't connected to the main gas grid. 

Like LPG, heating oil is delivered by road and stored in a tank.

Is your oil boiler reliable? See the best oil boiler brands. 

How does oil central heating work?

Heating oil is normally used in a ‘wet’ heating system, where an oil-fired boiler heats water, then provides central heating via radiators and hot water to the taps in your home.

Most condensing oil-fired boilers are floor-standing, and you can get heat-only and combi condensing oil-fired boilers. 

Most oil combi boilers have an internal hot water store to supply your hot water, rather than heating it on-demand like gas combi boilers do.

Will oil boilers be banned?

The government plans to phase-out high-carbon fossil fuel heating, including heating oil, in off-gas-grid homes during the 2020s. New homes can't have oil heating after 2025.

However it has said that it won't force homeowners to rip out central heating systems that are in good working order. 

But it's worth thinking ahead to what you might replace your oil boiler with when the time comes. 

Lower carbon options include:

• ground source heat pump
• air source heat pump
• solar water heating (for hot water only).

If a heat pump isn't practical in your home, then you could consider a high-temperature heat pump or biomass boiler instead.

The Federation of Petroleum Suppliers, the trade body for the heating oil distribution industry, thinks that a renewable, low-carbon liquid fuel or bio-fuel could be introduced as a solution for off-grid homes. It says that current oil heating systems would work with this fuel and help decarbonise off-grid heating.

How much does oil central heating cost?

The average price of energy generated by kerosene in October 2022 was 10.3p per kWh, according to Sutherland Tables, which collects domestic fuel price data. 

An average 'medium energy-use' home uses around 12,000Kwh per year for heating and hot water. Heating that home with kerosene heating oil would cost around £1,200 per year. 

But your actual heating bill depends on:

• the size of your home
• how well it's insulated
• the efficiency of your oil boiler
• how much heating and hot water you use
• the price of your heating oil
• where you live in the UK.

Use our guide to saving money on your energy bills to see what changes you can make to keep your home cosy and keep your bills in check.

Save money on heating oil

The price of heating oil changes and is currently high. Over the last five years, the cost per litre of heating oil has been: 

• 48p in January 2018
• 52p in January 2019
• 51p in January 2020
• 32p in January 2021
• 60p in January 2022

Find out more about price fluctuations and how to get the best price for heating oil.

Oil central heating pros and cons

Pros

• Oil is an efficient fuel, so you get a good return on each unit of energy
• Replacing a standard oil boiler with a more efficient modern condensing one is relatively straightforward
• You can stock-up on kerosene in advance, when the price is lower.

Cons

• Heating oil is delivered by road so there's a risk you could run out while you're waiting for a delivery. But you can get systems which monitor the oil level in your tank and automatically tell your supplier when you need a refill
• The price of heating oil fluctuates, depending on global demand
• Oil is a fossil fuel and produces carbon dioxide when it's burned, so it's not environmentally-friendly
• Installing oil central heating can be expensive and disruptive
• Oil boilers generally limit the hot-water flow rate to ensure it's as hot as it should be. This means the hot-water flow rate is lower than with a gas combi or hot-water cylinder system, and the temperature declines as more water is used
• The heating oil tank can be unsightly and needs servicing annually - find out more in our heating oil tank guide.