According to the Sutherland Tables, a recognised independent source of data on comparative UK domestic heating prices, oil is now the cheapest of all the major heating fuels, costing £119 less per year to heat an average three bedroom home than mains gas, the second cheapest option.
The data also shows that the price of kerosene has fallen by nearly 30% over the past two years and it is the first time the price has fallen lower than mains gas since 2010.
Comparing the cost of heating the same average home with either LPG or electric storage heaters – the other main heating methods used by off gas grid households – oil remains considerably cheaper, currently 47% less expensive than LPG and 37% cheaper than electricity.
Most analysts agree that the price of oil is set to stay low for the foreseeable future and this is supported by DECC’s most recent fossil fuel price projections report which even forecasts the potential for further falls over the next three years.
Jeremy Hawksley, director general of OFTEC, said: “This is welcome news for the industry and the 1.5 million UK households who use oil for heating. With sustained low prices forecast, we envisage many households currently using LPG and electricity will look to switch to oil. We may even see some mains gas households changing to oil, particularly if they need to replace their boiler.”