Free heating oil tool · Updated 5 August 2026

Compare two heating oil quotes

Quotes are rarely comparable as shown. A £460 quote including VAT for 500 litres is 92.00p per litre. A £445 quote excluding VAT plus £15 delivery is really £483.00, or 96.60p per litre. The cheaper looking quote costs 4.60p per litre more once VAT and delivery are in.

For reference, today's UK average is 92.5p per litre, surveyed on 5 August 2026. Enter your own quotes below.

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One quote is shown with VAT and another without. We have added 5% VAT to the ex-VAT quote so you compare like for like.

Total price (GBP)

Litres

Delivery charge (GBP, extra)

Price already includes 5% VAT

Total price (GBP)

Litres

Delivery charge (GBP, extra)

Price already includes 5% VAT

True cost, VAT and delivery included

Supplier A (cheapest)

£460.00 for 500L

92.00p

Supplier B

£483.00 for 500L

96.60p

Supplier A is cheapest at 92.00p per litre, 4.60p less than the dearest quote.

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A worked example

Two suppliers quote for 500 litres. Supplier A quotes £460 including 5 percent VAT with free delivery. Supplier B quotes £445 excluding VAT and adds a £15 delivery charge. At first glance B looks £15 cheaper.

Supplier A is already all in, so 460 divided by 500 litres is 92.00p per litre. Supplier B needs VAT adding: £445 becomes £467.25 of goods, then the £15 delivery with its own VAT brings the true total to £483.00. Divided by 500 litres that is 96.60p per litre.

So the quote that looked £15 cheaper is actually 4.60p per litre dearer once VAT and delivery are counted. On this 500 litre order, choosing A instead of B saves about £23. This is the trap the comparer removes.

Two quotes side by side

Line	Supplier A	Supplier B
Headline price	£460 inc VAT	£445 ex VAT
VAT at 5 percent	included	+ £22.25
Delivery (inc VAT)	£0	£15.75
True total for 500L	£460.00	£483.00
True pence per litre	92.00p	96.60p

Figures use the 5 percent domestic VAT rate for orders up to 2,300 litres. Above that, the standard 20 percent rate can apply.

How this is calculated

goods_inc_vat = vat_included ? total : total * (1 + 0.05)
                domestic VAT = 5% (verified 2026-07-28)
delivery_inc  = delivery_charge * (1 + 0.05)
true_total    = goods_inc_vat + delivery_inc
true_ppl      = true_total / litres * 100

Worked example:
  A: goods inc VAT 460, delivery 0        -> 92.00p/L
  B: goods 445 ex VAT = 467.25 inc, + 15 delivery
     true total 483.00                     -> 96.60p/L
  A is cheaper by 4.60p per litre.

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
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

What affects the result

VAT treatment is the biggest trap. A quote shown without VAT looks cheaper by 5 percent than one that includes it. On a 500 litre order that is easily £20 to £25, enough to flip which supplier is genuinely cheapest. Always convert to an inclusive figure first.

Delivery charges hide the real price. A low litre rate with a separate delivery fee can beat or lose to an all-in quote depending on order size. Small orders spread a fixed fee over fewer litres, so the true pence per litre climbs faster.

Order size changes the per-litre price. Larger orders almost always cost less per litre, so a quote for 900 litres will usually beat one for 300 even from the same supplier. Compare quotes for the same volume wherever you can.

Lead time and reliability still matter. The cheapest true price is no bargain if the delivery arrives after you run dry, or the supplier is hard to reach. Weigh the pence per litre against how quickly and reliably each supplier can deliver.

Price per litre comparer FAQs

Why can I not just compare the headline prices?

Because suppliers quote differently. Some show the price with 5 percent VAT, some without. Some fold delivery into the litre rate, others add it separately. Until you convert every quote to a true pence per litre with VAT and delivery included, you are not comparing like with like.

How do you convert an ex-VAT quote?

For domestic heating oil the reduced rate is 5 percent, so we multiply the ex-VAT total by 1.05. In the worked example a £445 ex-VAT quote becomes £467.25 of goods, then £15 delivery plus its own VAT is added, giving a true total of £483.00.

Is delivery usually charged separately?

Most UK suppliers quote an all-in price with delivery included, but not all. Rural postcodes, small orders under 500 litres and same-day requests can carry a separate charge. Always ask whether the quoted figure is the total you pay on the day.

What VAT rate applies to my order?

Domestic heating oil is charged at the reduced 5 percent rate for orders up to 2,300 litres in a single delivery. Above that, the standard 20 percent rate can apply unless a declaration is completed. This tool assumes the 5 percent domestic rate.

Is a cheaper price always the better deal?

Not always. A lower price with a long lead time is no use if you run dry first, and a small saving can be wiped out by a delivery charge. Compare the true pence per litre, then weigh lead time and reliability before you commit.

Does this relate to drip pricing rules?

Yes. The Digital Markets, Competition and Consumers Act targets drip pricing, where extras appear late in the process. Comparing the true all-in pence per litre is exactly how you see past a headline that hides VAT or delivery until checkout.