Oil heating is more competitive

Oil Heating is more competitive
Comparative heating costs for an average three-bedroom home
With oil prices dipping to a low of 52.5p per litre this summer, independent figures show how the price of oil has become more competitive over the last four years. According to the Sutherland tables, the price gap between oil and mains gas has narrowed from 48% in the first quarter of 2008 to 37% in 2012.

Also there is now very little difference between the price of heating an average three bedroom home with oil, electricity or wood pellets.

The results coincide with news from the Department of Energy and Climate Change (DECC) that the number of fuel poor households in the UK fell to 4.75m in 2010 from 5.5m in 2009. Improvements in efficiency enabled householders to heat their homes using less energy.

Commenting on the figures, OFTEC director general Jeremy Hawksley said: “Oil is still one of the most competitive fuels for off gas main properties in rural areas, and it’s reassuring that the move towards condensing boilers has helped contribute to a reduction in fuel poverty.”

LPG remains the most expensive fuel for off gas main customers, costing £1929 per annum to provide heating and hot water for an average three-bedroom home compared to £1408 with oil. In 2008 oil was 19% cheaper than LPG, whereas it is now 27% cheaper.