How to Choose Between Oil and Gas Heating

For the approximately 4 million UK homes without mains gas, the primary heating fuel choice is usually oil, LPG, or (increasingly) a heat pump. Here's how to think through the oil vs gas decision if you're in an area where both are available.

If mains gas is available

In almost all cases, connecting to the mains gas grid (if you're not already on it) is worth the connection cost. Natural gas is reliably priced (regulated under the Ofgem price cap), requires no on-site storage, and the widest range of appliances are available. A mains gas connection costs £300–£2,000 depending on proximity to the gas main.

If mains gas is not available

Oil vs LPG

Oil (kerosene) is typically cheaper per kWh than LPG. Oil requires a larger tank but is available anywhere. LPG tanks can be buried (neater aesthetically) and LPG boilers are essentially identical to natural gas versions. For most off-grid homes, oil is the cheapest fossil fuel option.

Oil vs heat pump

A heat pump at COP 2.5 running on electricity at 28p/kWh costs approximately 11.2p/kWh of heat. Oil at 7p/kWh with 95% efficiency costs approximately 7.4p/kWh. Oil is currently cheaper to run. But with the £7,500 BUS grant and falling electricity prices, heat pumps become increasingly competitive. Well-insulated rural properties are excellent heat pump candidates.

Our recommendation

Connect to mains gas if it's accessible and the connection cost is reasonable. If off-grid: oil for maximum fuel cost savings today; heat pump if insulation is good and you're thinking long-term. We install all heating types — contact us for an honest assessment.