Oil central heating vs. gas: Which one is cheaper?

Date Published: 30/06/2025

Are you comparing oil and gas central heating and trying to work out which is cheaper? It’s a good idea – with energy bills fluctuating and fuel prices climbing, more UK homeowners are asking:

“Is oil central heating cheaper than gas in 2025?”

That’s exactly what we’ll break down today – from the costs of each fuel type to which one is more energy-efficient. By the end, you’ll know everything you need about oil vs gas central heating costs. So, let’s get into it!

Key Takeaways

• What’s the cost of oil vs gas central heating in the UK?
  • Price flexibility: Oil puts you in control
• Do you save money with heating oil?
  • How does the standing charge affect your bill?
  • Can oil heating be cheaper in the long term?
• How do oil and gas central heating systems compare?
  • How long does each last?
• Should you choose oil or gas central heating?
  • Choose gas central heating if:
  • Choose oil central heating if:
• Get cheap heating oil for your home with Your NRG

What’s the cost of oil vs gas central heating in the UK?

Heating oil typically costs 9–11p per kWh, while mains gas comes in lower at around 6–7p per kWh. But there’s more to it than just the price per unit. Gas customers also pay a standing charge (usually £100-£120 per year) just to stay connected to the grid.

Price flexibility: Oil puts you in control

One of oil’s biggest advantages? You decide when to top up. Many customers bulk buy in summer, when prices are lower, and avoid winter price spikes. You’re not locked into standing charges or fixed monthly tariffs. You only pay for what you use.

Do you save money with heating oil?

In many cases, heating oil can be cheaper to run than gas, especially in rural or off-grid homes. While gas may have a lower unit price, oil gives you more control over how and when you buy, helping you save in the long term.

How does the standing charge affect your bill?

The standing charge is one of the most overlooked differences. With gas, you’re paying a standing charge of around £100–£120 a year, no matter how much energy you use. That’s a fixed cost for your energy bill. With heating oil, there’s no standing charge. You only pay for the fuel you use. That means every pound you spend goes directly into heating your home.

Can oil heating be cheaper in the long term?

Yes, especially if you plan ahead. Domestic heating oil users can:

• Buy in summer, when demand (and prices) are lower
• Take advantage of bulk-buy discounts
• Use smart monitors to avoid emergency top-ups at peak pricing

This often leads to lower costs, especially in rural or off-grid areas where mains gas isn’t available or is expensive to connect.

Thinking about domestic heating oil for your home? Get a quick quote today and see how much you could save with flexible, reliable delivery from Your NRG.

How do oil and gas central heating systems compare?

Oil and gas central heating systems differ in how quickly they heat your home, how consistent the warmth is, and how much upkeep they need day to day.

Heat output: Oil offers steady, reliable heat, ideal for larger, older, or poorly insulated properties. It’s especially good for heating multiple rooms quickly and consistently.

Hot water: Gas boilers (particularly combi models) can heat your water almost instantly, making them a good match for family homes that use a lot of hot water.

On or off grid: No gas supply? No problem. Oil is fully off-grid, making it the top choice for remote, detached, or rural homes without access to mains electricity.

How long does each last?

• Oil boilers typically last 15-25 years, especially when serviced annually.
• Gas boilers usually offer a 10-15 year lifespan, depending on use.

Should you choose oil or gas central heating?

Here’s what you should know when it comes to choosing between an oil or gas central heating system.

Choose gas central heating if:

• Your home is already connected to the mains gas grid
  No need for major infrastructure work or connection fees.
• You prefer fixed monthly payments
  Gas offers consistent billing through direct debit – helpful for budgeting.

Choose oil central heating if:

• You live in a rural or off-grid area
  Heating oil doesn’t require a mains connection – it's fully independent.
• You want control over when and how you buy fuel
  You can top up at a time that suits you or when it’s most cost-effective.
• You’d rather avoid standing charges and stick to usage-only costs
  With oil, there are no fixed connection fees – you only pay for what you use.

Choosing between oil and gas isn’t just about which is cheaper, but how much control you want over your heating. For off-grid homes, oil often brings the best balance of independence, cost control, and heating power.

Get cheap heating oil for your home with Your NRG

Whether you’re off-grid and looking for reliable fuel or just weighing up what’s going to cost you less, the right central heating system matters. At Your NRG, we make domestic heating oil simple, fair, and flexible – with competitive prices, expert advice, and delivery you can count on. Want to see how much heating oil could cost for your home? Get a quick online quote or speak to our team today on 01642 686000.