The latest Sutherland Tables, which compare the average annual cost of heating a typical three bedroom home, reveals the cost of heating a home with oil has fallen by 6% over the past 12 months, reducing average bills by £80. The current price is below the four year average of £1,349.
Compared to other fuels, the data shows that consumers with an oil condensing boiler are paying £1,293 per year, 10% lower than gas condensing boilers (£1,442).
Households with LPG condensing boilers are paying an average £2,023 per year, whilst consumers with electric storage heaters face an annual bill of £3,036. In comparison, oil is 36% and 57% cheaper respectively, making it the cheapest of all the most popular heating technologies.
Whilst all fuels experienced significant price volatility during the pandemic and Ukraine crisis, oil has returned to pre-Covid levels whilst other fuels remain higher. Competition between heating oil suppliers has meant households have been able to shop around to secure the best price.
Trade association OFTEC, which runs an accreditation scheme for off-gas grid heating technicians, has welcomed the news and reminded households to regularly service their boiler with a qualified technician to further help lower running costs and fuel bills.
Responding to the findings, Malcolm Farrow, from OFTEC, commented: “With oil remaining the cheapest form of heating and continuing to fall, this is great news for the 18,000 oil users in Surrey. The data shows this isn’t a one off but is part of a wider long term trend. With quick delivery and multiple payment options, it’s a great time for consumers on oil heating.
“It’s also important households continue to have their boiler serviced at least once a year by an OFTEC registered technician to ensure it is working correctly. Not only will this help identify and resolve issues before they become more expensive, but it will help you reap maximum benefit from the lower fuel price by ensuring the system is running safely and efficiently.
“We’re seeing global crude oil prices coming down, driven by international markets, and consumers are feeling the benefits. It’s important to remember though that, despite this, in the current cost of living crisis, many households are still struggling with their fuel bills. Additional support is available for low income households with more information on the OFTEC website.”
Around 1.7 million homes across the UK use liquid fuels and it is one the most popular forms of heating for households in rural areas.
OFTEC, and industry partners, are continuing to call on the government to support for renewable liquid fuels, such as Hydrotreated Vegetable Oil (HVO), which are a low cost and convenient alternative to drastically cut carbon emissions. The fuel has already been successfully demonstrated in over 100 properties across the UK over a three year period.
Malcolm added: “Longer term, we are all going to have to switch to low carbon heating fuels to reduce our emissions. OFTEC and the liquid fuel industry are fully committed to reducing fossil fuel use, and the good news is that sustainable, renewable liquid fuels offer the ideal alternative. The switch is quick and easy and immediately results in a drastic reduction in emissions.
“We have had positive meetings with the government about rolling out HVO to all oil households as the industry is ready to deliver at scale. What we need now is policy support from the government to make this happen. In doing so, we can provide an affordable and rapid low carbon solution for these homes as many will struggle to adopt alternative technologies.”