Heating Oil Cost Calculator
Estimate your annual heating oil cost, cost per delivery, cost per kWh of useful heat, and CO2 emissions based on your property, usage and current oil price.
Cost Breakdown
Deliveries & Tank Fills
Illustrative Comparison With Other Heating Fuels
Comparison uses typical UK average unit rates for context only — actual gas and electricity tariffs vary by supplier and region. This is not a like-for-like running-cost guarantee, since boiler/heat pump efficiency, insulation and usage patterns differ between systems.
Heating Oil Cost Calculator UK
Our Heating Oil Cost Calculator helps oil-heated households across the UK estimate their annual heating bill, cost per delivery and cost per kWh of useful heat. Around 1.5 million UK homes off the mains gas grid rely on kerosene heating oil, where prices are unregulated and change daily — this tool gives you a planning estimate, not a live quote.
How Much Does Heating Oil Cost in the UK?
Heating oil prices are set by the open market rather than a price cap, so they can move sharply with global crude oil prices, the pound-dollar exchange rate, and seasonal demand. Prices are typically quoted per litre and usually get cheaper per litre the larger the order, since delivery and handling costs are spread over more fuel.
| Order Size | Typical Price Range (inc. VAT) | Typical Total Cost |
|---|---|---|
| 500 litres | 90p – 105p/litre | £450 – £525 |
| 1,000 litres | 85p – 98p/litre | £850 – £980 |
| 1,500 litres | 82p – 94p/litre | £1,230 – £1,410 |
| 2,000+ litres | 78p – 90p/litre | £1,560 – £1,800+ |
Prices are indicative and move daily. Always get a live quote from your supplier before ordering — this calculator is for planning purposes only.
How to Use This Calculator
- Select your property size and insulation quality — this pre-fills a suggested annual usage figure.
- Check or replace the annual usage figure — if you know your actual usage from past deliveries, enter that instead for a more accurate result.
- Choose your typical order size — this affects the suggested price per litre, since bulk orders are usually cheaper.
- Enter your current price per litre — use a live quote from your supplier or an oil price comparison site for accuracy.
- Adjust boiler efficiency if you know it — modern condensing oil boilers are typically 85-90% efficient.
- Click Calculate Cost to see your annual cost, delivery costs and CO2 estimate.
Why Order Size Affects Your Price Per Litre
Heating oil suppliers charge more per litre for smaller orders because delivery costs — the driver’s time, fuel, and vehicle wear — are largely fixed regardless of how much oil is delivered. Ordering in bulk, or joining a local oil buying group with neighbours, can reduce the price per litre significantly compared to topping up in small amounts.
- Order in bulk when possible: Combining orders with neighbours through an oil buying club is one of the most effective ways to reduce cost per litre.
- Avoid running low: Emergency small-quantity deliveries are usually the most expensive per litre.
- Watch the market, not just the calendar: Prices can fall as well as rise, so tracking a price comparison site before ordering can help you time a purchase.
- Compare suppliers each time: Loyalty to a single supplier rarely gets you the best rate — get multiple quotes.
How Is the Cost Per kWh Calculated?
Kerosene heating oil has a calorific value of approximately 10.35 kWh per litre. Not all of that energy reaches your radiators — some is lost as waste heat in the boiler. This calculator divides your price per litre by the useful energy delivered (calorific value multiplied by your boiler’s efficiency) to give a cost-per-kWh figure that can be compared, broadly, with gas or electricity unit rates.
Typical UK Heating Oil Usage by Property
| Property Type | Typical Annual Usage | Estimated Annual Cost* |
|---|---|---|
| Small 1-2 bed house/flat | 800 – 1,200 litres | £750 – £1,120 |
| Medium 3 bed house | 1,500 – 2,100 litres | £1,400 – £1,960 |
| Large 4+ bed house | 2,200 – 3,000 litres | £2,060 – £2,800 |
*Estimated at approximately 93.5p/litre. Actual usage depends heavily on insulation, heating hours, thermostat settings and local climate.
CO2 Emissions From Heating Oil
Kerosene heating oil produces around 2.52kg of CO2 equivalent per litre burned, based on standard UK government greenhouse gas conversion factors. A medium 3-bed household using around 1,800 litres a year produces roughly 4.5 tonnes of CO2 from heating oil alone — noticeably higher than an equivalent gas-heated home, which is one reason oil-heated households are a focus of the Boiler Upgrade Scheme for heat pump conversions.
Frequently Asked Questions
Why can heating oil be more expensive than gas per kWh?
Heating oil isn’t subject to an Ofgem price cap the way gas and electricity are, and delivery, storage and distribution costs are higher relative to a piped fuel. Kerosene prices also track global crude oil and shipping costs closely, so they can be more volatile than regulated fuels.
How often will I need an oil delivery?
This depends on your annual usage and your typical order size. A medium household using around 1,800 litres a year with a 1,000-litre tank would typically need roughly two deliveries annually, though this varies with weather, insulation and how full you like to keep your tank before reordering.
Is it cheaper to order oil in bulk?
Usually, yes. Larger orders typically come with a lower price per litre because delivery costs are spread over more fuel. Joining a local oil buying group, where several households combine orders for a bulk delivery, is one of the most common ways UK households reduce their per-litre cost.
What is the calorific value of heating oil?
Kerosene (heating oil, sometimes called 28-second oil or C2 oil) has a calorific value of approximately 10.35 kWh per litre. This is the total energy content — the amount of useful heat you actually get depends on your boiler’s efficiency, typically 85-90% for a modern condensing oil boiler.
Does VAT apply to heating oil?
Domestic heating oil for home use is charged at the reduced rate of 5% VAT rather than the standard 20% rate that applies to most goods and services, in line with the reduced rate applied to domestic fuel and power in the UK.
How can I reduce my heating oil costs?
Improving loft and cavity wall insulation, bleeding radiators, fitting a smart thermostat with zoned heating, servicing your boiler annually for efficiency, and ordering in bulk or through a buying group are the most effective ways to reduce oil heating costs without switching fuel entirely.