The latest quarterly data from the Sutherland Tables, the provider of comparative home heating costs for the most common fuel types in the UK and Republic of Ireland, has shown heating oil has enjoyed the biggest price drop in the last year and has also dropped below the four-year average.
“Compared to how much it cost the 1.5 million off-grid energy users to heat their homes using oil last year, it’s now a lot cheaper – which is obviously great news for consumers. While the UK average prices for gas, electricity and oil have come down since the last quarter, oil users have gained the most, regardless of their location and types of boilers being used. Wood pellets prices have risen in every area, while prices for solid fuels and LPG have on the whole remained the same.” says Mark Askew, Chief Executive of oil distribution industry trade association the Federation of Petroleum Suppliers (FPS).
When looking at the last 12 months the gap between the cost of oil and LPG has grown larger with the decreasing oil prices. Furthermore, all other domestic fuel types have risen in costs over the past 12 months with wood pellets increasing the most. LPG, used by some 170,000 off-grid households, still remains the most expensive fuel, costing a three bedroom home with a condensing boiler £1,923 per annum compared to electricity at £1,587, heating oil at £1,228 and gas at £1,119.
Jeremy Hawksley, Director General of OFTEC adds, “This is very welcome news. Three years ago, based on condensing boilers, oil was 60% more expensive than mains gas but that gap has now narrowed to less than 10%. If current trends continue with gas and electricity prices increasing, oil is set to become even more competitive which is good news for our industry and our customers.”
The data also highlights that heating oil is the only fuel to have dropped in price over the last four years as electricity costs for a three bedroomed home using Economy 7 have risen by 27.78%, costs for a gas condensing boiler have risen 34.01% whilst costs for an oil condensing boiler have dropped by 12.22%.
“The newest figures from the Sutherland Tables highlight what the FPS and OFTEC has known for some time – that heating oil is an extremely competitive choice right now. Plus, consumers can further benefit from other options when using oil to heat their homes, including the ability to buy at a time when the price is lower due to less demand, such as during the summer. It is also a good idea to set up monthly payments with your local oil heating distributor in order to manage your energy needs more effectively. This means you should avoid being hit with bigger bills during the winter months and can plan for your energy expenditure more easily. There are a lot more hints and tips about buying oil wisely and looking after your oil heating system on our website www.oilsave.org.uk.” adds Mark.
For more information on heating oil, visit Oilsave at www.oilsave.org.uk