Benefits of Domestic Home Heating Oil

Date Published: 18/11/2024

In the UK homes are typically heated with gas, but more than 1.5 million of us actually use domestic heating oil (or kerosene) to heat our properties. As users of domestic heating oil know, this method of home heating comes with numerous benefits, including the ability to buy oil in bulk and stock up when prices are low.

Additionally, modern oil boilers can be incredibly efficient and are generally considered to be safer than gas — unlike its gas counterpart, heating oil is a non-explosive substance. However, if you’re considering home heating oil, we understand you may have questions about what it is and how it works. You may also want to know about the benefits it offers versus the alternatives before you make your decision.

That’s why we’ve put together this guide, to explain everything you need to know about domestic heating oil and how you can benefit from this innovative heating option.

The types of domestic heating oil and commercial gas

There are two types of heating oil. These are kerosene heating oil and gas heating oil. Kerosene heating oil is also known as ‘28-second oil’ or ‘kerosene’ and is used in domestic heating applications. Gas heating oil, which is commonly referred to as ‘35-second oil’ or ‘red diesel’, is generally used for commercial or agricultural purposes.

Home heating oil vs kerosene

You may have heard terms like ‘domestic heating oil’ and ‘kerosene’ and wondered what the difference is between them. In fact, this oil has several other names including ‘home heating oil’, ‘28-second oil’ and ‘domestic oil’. The important thing to note is that although it’s known by different names, they’re all the same thing.

Home heating oil versus off road diesel

Understanding the difference between heating oil and off road or red diesel fuel can be confusing. However, domestic heating oil or kerosene is not the same as diesel. The biggest difference between home heating oil and diesel fuel is that former is much cleaner and purer than gas heating oil, making it safer to use in your home.

Why is home heating oil more expensive than diesel?

Red diesel, also known as rebated diesel, is a cheap commercial fuel. It was introduced by the government to provide cheap fuel for businesses and has a lower fuel tax duty than white diesel. As outlined on the Gov website, ‘red diesel is entitled to a rebate of 46.81ppl’. However, home heating oil also benefits from 5% VAT, a figure that’s much lower than the standard 20%.

Home heating oil vs natural gas: what are the differences?

Natural gas is the most common method used to heat homes in the UK. This gas reaches your home down long pipelines and is then heated in your gas boiler’s combustion changer. Home heating oil works in much the same way but there is one big difference: heating oil is stored in an oil tank on your property.

Depending on when you buy, you may be able to save money when comparing heating oil with natural gas. This is because you can buy heating oil in bulk when the demand is lower and store it ready for winter, while gas is supplied as you need it and therefore dependent on current pricing.

Home heating oil vs propane: what are the differences?

Both kerosene heating oil and propane can be used for heating your home. In fact, many homes in the UK use a form of propane in their central heating, or as it’s more commonly referred to, LPG. This stands for liquified petroleum gas and this is usually compressed and stored as a liquid. Home heating oil, however, is a viscous liquid. Just like heating oil, LPG is stored in an external storage tank. These two fuels require different boilers: LPG boilers and oil boilers. Additionally, depending on demand, LPG can be more expensive than heating oil.

Home heating oil vs electric: what are the differences?

While an oil boiler works by heating oil from your storage tank, an electric boiler works by running water through an element and heating it with electricity. Both oil and electric heating have their benefits, and the latter is becoming increasingly popular in the UK as more people moving towards environmentally friendly heating solutions. However, like gas, electric boilers are supplied on demand. As such, when you use an electric boiler, you’re often tied into a tariff and this means you could feel the immediate impact of any price changes. You can get an easy and quick heating oil quote for your home with our quote tool. 

Is home heating oil elastic or inelastic?

Elasticity refers to how the supply or demand of home heating oil is impacted when the price changes. Some argue that home heating oil or kerosene is considered to be relatively elastic, as the price changes when supply or demand are impacted. However, others state that it is relatively inelastic as despite price changes, it cannot be easily substituted and is therefore always in demand.

Home heating oil: the benefits summarised

With all of the above you can see there are a number of advantages to using heating oil over alternative options. So to sum these up for you – plus a few other bonus reasons – the benefits are: Opportunities to buy in bulk and make savings in the long run. It can be more affordable than gas and electric.

It can be more a more efficient fuel source than gas and electric. It’s one of the safest means of heating your home. Oil-based heating systems typically last longer. It can be a more reliable and convenient means of heating your home if you live in a remote area. Homeowners can have more control over their heating.

Home heating oil with low online prices

We hope this article has helped you understand what home heating oil is, how it works and what benefits you can enjoy from using it. If you’re looking for extra added value, you’ll be pleased to know that here at Your NRG, we’re proud to supply affordable home heating oil and fuel across England, to find your local depot take a look at our locations. 

Use our quote tool to get a quick price online or take a look at our Tank Volume Calculator to find out how much heating oil you need. We can deliver your heating oil for free and get your making the most of this fantastic home heating option in no time. Also, if you have any other questions you can contact us, our experienced experts are on hand to help. 

See also...

Benefits of domestic home heating oil
What is domestic home heating oil
How much is domestic home heating oil