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UK avg today 92.5p / litre ▼ 0.1p 500L delivered £486 inc. VAT & delivery Updated 5 Aug 2026, 09:00 Suppliers surveyed 60 named UK suppliers UK avg today 92.5p / litre ▼ 0.1p 500L delivered £486 inc. VAT & delivery Updated 5 Aug 2026, 09:00 Suppliers surveyed 60 named UK suppliers
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Free heating oil tool · Updated 5 August 2026

What Does It Cost to Heat a House With Oil?

A typical oil-heated home using about 1,700 litres a year spends roughly £1,651.13 at today's UK average of 92.5p per litre, surveyed on 5 August 2026. That averages £137.59 a month, but closer to £275.19 in each winter month when most of the oil is burned.

Your usage

1,700L
500L5,000L
p

Today's UK average, surveyed on 5 August 2026.

Boiler efficiency affects cost per kWh of heat, not the fuel cost itself.

Your annual cost

Cost per year
£1,651.13

1,700 litres at 92.5p per litre inc VAT

Averaged per month
£137.59
Per winter month
£275.19
Cost per kWh of delivered heat
10.2p

If prices returned to the April 2026 peak of 108.2p, the same 1,700 litres would cost £1,931.37 a year.

A worked example

Take a household burning 1,700 litres a year, a common figure for a three or four bedroom rural home. On 5 August 2026 the UK average was 92.5p per litre. The annual fuel cost is 1,700 multiplied by 92.5p, divided by 100, then multiplied by 1.05 for VAT, which comes to £1,651.13.

Averaged evenly that is £137.59 a month, but heating is not spread evenly. Using an illustrative model where about 50% of oil is burned across the three winter months, each winter month costs closer to £275.19. Through a 92% condensing boiler the delivered heat costs about 10.2p per kWh. If prices returned to the April 2026 peak of 108.2p, that same year would cost £1,931.37. Past moves are not a forecast.

Annual cost by yearly usage

At today's average of 92.5p per litre inc 5% VAT. Winter month uses an illustrative 50% winter share.

Litres per year Cost per year Per winter month At April 2026 peak (108.2p)
1,000L £971.25 £161.88 £1,136.10
1,500L £1,456.88 £242.81 £1,704.15
1,700L £1,651.13 £275.19 £1,931.37
2,000L £1,942.50 £323.75 £2,272.20
2,500L £2,428.13 £404.69 £2,840.25
3,000L £2,913.75 £485.63 £3,408.30

How this is calculated

annual_cost   = annual_litres x ppl / 100 x (1 + vat_domestic)
per_month     = annual_cost / 12
winter_month  = annual_cost x seasonal_share.winter / 3
cost_per_kwh  = (ppl_inc_vat / 100) / (kwh_per_litre x boiler_efficiency)

vat_domestic         = 0.05
seasonal_share.winter= 0.5  (illustrative model, see sources)
kwh_per_litre        = 10.35 kWh/L
boiler_efficiency    = 0.92 condensing / 0.78 older

Worked (1700 L at 92.5p, 5 August 2026):
  annual_cost  = 1700 x 92.5 / 100 x 1.05 = £1,651.13
  winter_month = £1,651.13 x 0.5 / 3 = £275.19

Figures used on this page

Figure Value Source Verified
vat domestic 0.05 ratio VAT Act 1994 Schedule 7A Group 1, domestic fuel reduced rate 2026-07-28
kerosene kwh per litre 10.35 kWh/L UK Government GHG conversion factors 2025, burning oil (net CV) 2026-07-28
boiler efficiency condensing 0.92 ratio SEDBUK band A typical seasonal efficiency, OFTEC technical guidance 2026-07-28
boiler efficiency noncondensing 0.78 ratio SEDBUK band D-E typical seasonal efficiency for pre-2005 pressure jet boilers 2026-07-28
seasonal share see page Illustrative seasonal model. No authoritative UK source publishes a domestic kerosene seasonal split; this model is stated as illustrative on every page that uses it. 2026-07-28
price peak 2026 ppl 108.2 p/L Compare My Heating Oil price history, UK average 500 litre price at the April 2026 peak 2026-07-28

What affects the result

How much oil you actually burn. Floor area, insulation, thermostat setting and how many people are home all move your annual litres. This tool takes your usage as the input, so the accuracy of the result depends on knowing roughly how much you buy in a year.

The price you pay. The pence per litre figure is the biggest lever. At 92.5p today, a swing of 10p per litre changes a 1,700 litre year by roughly £178.50.

The seasonal split is illustrative. No authoritative UK source publishes a domestic kerosene seasonal breakdown, so the winter figure uses a model we state openly. Your own split depends on your climate and habits.

Boiler condition. A well serviced condensing boiler wastes less heat than a neglected older one. Efficiency does not change the fuel price, but it changes how many litres you need for the same warmth, and therefore your annual bill.

Annual heating cost calculator FAQs

What does it cost to heat a house with oil for a year?
A typical oil-heated home using 1,700 litres a year spends about £1,651.13 at today's UK average of 92.5p per litre, surveyed on 5 August 2026. Larger or less efficient homes use more, so use the calculator with your own figure.
How much of the cost falls in winter?
Most of it. Using an illustrative seasonal model where about 50% of oil is burned across the three winter months, a £1,651.13 annual bill works out near £275.19 per winter month against £137.59 averaged across the whole year.
How is cost per kWh of heat calculated?
We take the price per litre including 5% VAT, divide by the energy content of kerosene (10.35 kWh per litre) and by boiler efficiency. At 92.5p per litre through a 92% condensing boiler that is about 10.2p per kWh of usable heat.
How does this compare with a year ago?
A year ago the UK average was in the region of 118.5p per litre. On 1,700 litres, the difference against today's 92.5p is the annual saving or increase you would feel. We never present past moves as a forecast of future prices.
Does a more efficient boiler cut the fuel I buy?
It cuts the oil needed for the same warmth. A condensing boiler at 92% delivers more usable heat per litre than an older 78% unit, so it lowers both your annual litres and your cost per kWh of heat.

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