Latest industry figures show oil prices have fallen a further 10.5% with consumers reaping the benefits because the drop in wholesale costs are being passed directly on – unlike the picture for households on mains gas and electricity.
OFTEC director general Jeremy Hawksley comments: “It’s pleasing to see industry is acting responsibly and playing its part in ensuring a fair deal on price for the UK’s 1.4 million oil using households.
“Oil consumers have seen the cost of heating their homes fall consistently for the past two years and with prices predicted to remain low for some time to come, the case for sticking with oil, or even switching to oil, is strong.”
The Radio 4 interview discussed the possibility of people moving to oil from electric storage heaters or LPG if the price remains low. This may become an increasingly viable option as the Sutherland Tables show that the average annual cost of oil heating is now just £793 in Great Britain. This compares favourably with all the main alternatives: mains gas £1038; wood pellets £1332; air source heat pump £1453; LPG £1548; and electric storage heaters £1600.
OFTEC calculates that homeowners relying on a standard efficiency LPG boiler would see the cost of switching to an oil condensing boiler recouped in just three and a half years, even allowing for the need to purchase an oil tank. Storage heater users would recoup their investment in around five years, including the associated radiator installation cost.