Free heating oil tool · Updated 5 August 2026
A 500 litre order at today's UK average of 92.5p per litre costs about £485.63 including 5% VAT and delivery, surveyed on 5 August 2026. That works out at 97.1p per litre inclusive, or about 10.2p per kWh of usable heat.
Take a common 500 litre order. On 5 August 2026 the UK average we surveyed was 92.5p per litre. The cost before VAT is 500 multiplied by 92.5p, divided by 100, which is £462.50. Domestic heating oil is charged VAT at 5%, so the total becomes £462.50 multiplied by 1.05, giving £485.63.
That is 97.1p per litre once VAT is added. Converted to usable heat, using kerosene at 10.35 kWh per litre through a condensing boiler at 92% efficiency, it is about 10.2p per kWh. The cheapest supplier in our survey that day quoted 89.6p, so the same 500 litres would have cost £470.40, a saving of £15.23 against the average.
All figures include 5% VAT and delivery. Based on prices surveyed on 5 August 2026.
| Litres | At average (92.5p) | Cheapest surveyed (89.6p) | Dearest surveyed (96.0p) |
|---|---|---|---|
| 300L | £291.38 | £282.24 | £302.40 |
| 500L | £485.63 | £470.40 | £504.00 |
| 900L | £874.13 | £846.72 | £907.20 |
| 1,000L | £971.25 | £940.80 | £1,008.00 |
| 1,500L | £1,456.88 | £1,411.20 | £1,512.00 |
| 2,000L | £1,942.50 | £1,881.60 | £2,016.00 |
Home heating oil is charged 5% VAT at any volume. Only non-domestic use above 2,300 litres in a single delivery moves to 20%. See the VAT threshold checker for the detail.
total_ex_vat = litres x ppl / 100 vat_rate = 0.05 (domestic home heating, any volume) total_inc_vat = total_ex_vat x (1 + vat_rate) cost_per_kwh = (ppl_inc_vat / 100) / (kwh_per_litre x boiler_efficiency) kwh_per_litre = 10.35 kWh/L boiler_efficiency = 0.92 (condensing, verified 2026-07-28) Worked (500 L at 92.5p): total_ex_vat = 500 x 92.5 / 100 = £462.50 total_inc_vat = £462.50 x 1.05 = £485.63
| Figure | Value | Source | Verified |
|---|---|---|---|
| vat domestic | 0.05 ratio | VAT Act 1994 Schedule 7A Group 1, domestic fuel reduced rate | 2026-07-28 |
| vat standard | 0.2 ratio | VAT Act 1994, standard rate | 2026-07-28 |
| vat threshold litres | 2300 litres | HMRC VAT Notice 701/19, de minimis limit for domestic use presumption | 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 |
The live oil price. Heating oil tracks the international crude market with a lag of a few weeks. The pence per litre figure is the single biggest driver of your total, which is why the calculator defaults to today's surveyed average rather than asking you to guess.
Order volume. Larger deliveries spread the fixed delivery cost across more litres, so the price per litre falls. This is why a 900 litre order usually beats three separate 300 litre top-ups on both price and hassle.
VAT rate. Domestic home heating is charged 5% at any volume, and deliveries of 2,300 litres or less are 5% automatically. Only non-domestic use pays the standard 20% rate on deliveries above 2,300 litres.
Which supplier you choose. On any given day, suppliers serving the same postcode can differ by several pence per litre. Comparing before you order is the most reliable way to pay the lower end of the range rather than the higher.
Compare quotes for a 500 litre delivery from local suppliers for your postcode. Prices update every weekday morning.
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