In this guide, we’ll explain how much home heating oil costs right now, why prices rise and fall, and simple ways to save money on your deliveries. Whether you’re topping up or planning ahead before winter, we’ll help you make informed decisions and keep your home warm at a competitive price.
Jump to:
- How much does heating oil cost right now?
- Will the cost of heating oil go down?
- Why do domestic heating oil costs change?
- How can I get the best price for heating oil?
How much does heating oil cost right now?
Heating oil prices change every day, so it’s always worth checking the latest figures before you buy. You can do this by checking our heating oil prices chart, which shows current heating oil costs and how they’ve changed over time.
Will the cost of heating oil go down?
It’s difficult to say with certainty if heating oil costs will go down, as several things influence the price, including supply, seasonal demand, and crude oil prices.
While analysts in recent years expected prices to stay high, the cost of heating oil (kerosene) has actually fallen from its peak in 2022. If conflicts around the world settle or global economic growth slows, the cost of heating oil may go down. However, a cold snap may bring strong demand for heating oil, pushing prices up further than expected.
Top tip: There’s no real way to know if the cost of heating oil will go down, but you can manage uncertainty by spreading your costs with a savings plan.
Why do domestic heating oil costs change?
Domestic heating oil costs change due to several factors, including:
Crude oil prices
Kerosene is refined from crude oil, so its cost is directly linked to the global crude oil market. When production increases, supply stabilises and prices fall. But if supply is restricted, the cost of heating oil typically increases.
Foreign exchange rates
Heating oil is traded internationally in US dollars. So, if the pound weakens against the dollar, UK buyers need more pounds to buy the same amount of oil, driving up prices. A stronger pound can have the opposite effect, helping to lower the cost of heating oil.
Heating oil delivery costs
The cost of fuel suppliers getting your heating oil from their depots to your tank also affects the final price. Rural homes, long travel routes, and smaller order sizes can mean higher per-litre costs.
Top tip: Ordering larger quantities of kerosene heating oil or planning ahead for scheduled deliveries can help keep these delivery costs down.
How can I get the best price for heating oil?
Getting the best price for heating oil is about preparation, timing, and buying at scale.
Bulk buy your heating oil
If you can, order a larger quantity of heating oil at once. Bigger deliveries lower the price per litre because they’re more efficient for your supplier.
Join an oil club
If you live in an off-grid home, see if you can team up with neighbours or join a local buying group to place a shared order. Pooling your fuel in this way helps spread delivery costs and makes your order more cost-effective, giving you the best possible price per litre.
Order in advance
Avoid peak winter demand by topping up your tank before the cold weather hits – kerosene prices are often cheaper in summer or early autumn as demand is lower.
Time your order
Keep a close eye on heating oil prices and market trends. Buying during a dip can make a noticeable difference to the overall cost of your heating oil order.
Get a fair price for your heating oil with Your NRG
As the UK’s leading independent fuel supplier, we know how important it is for off-grid homes to get domestic heating oil at a fair price. That’s why we offer competitive prices, an easy online quote tool, and fast deliveries across the UK. Backed by ‘Exceptional’ service rating and decades of expertise, we’ll make sure your home stays warm all year long.
Get your free heating oil quote now!
Domestic heating oil cost FAQs
How much is VAT on heating oil?
In the UK, domestic heating oil is charged at the reduced rate of 5%. This applies to most households and small businesses that use oil for heating or hot water. The standard 20% VAT rate usually only applies if it’s being bought for commercial or industrial use.
How can I save money on heating oil costs?
You can save on heating oil costs by:
- Ordering in bulk to lower the price per litre.
- Joining an oil club to share deliveries with neighbours
- Ordering in advance before peak winter demand
- Keeping an eye on crude oil prices and buying when there’s a dip
How much is 1,000 litres of oil?
The cost of 1,000 litres of heating oil depends on the market price of kerosene that day. For example, if the price is 70p per litre, 1,000 litres would cost around £700. Prices can change quickly, though, so check live heating oil prices before making your order.
