The latest quarterly data from the Sutherland Tables, the respected provider of comparative home heating costs for the most common fuel types in the UK and Republic of Ireland, has shown heating oil has seen the biggest price drop in the last year and has also fallen below the four-year average.
Chief executive of oil distribution industry trade association FPS (Federation of Petroleum Suppliers), Mark Askew, said: “Compared to how much it cost the 1.5 million off-grid energy users to heat their homes using oil last year, it’s now a lot cheaper – which is obviously great news for consumers. While the UK average prices for gas, electricity and oil have come down since the last quarter, oil users have gained the most, regardless of their location and types of boilers being used. Wood pellets prices have risen in every area, while prices for solid fuels and LPG have on the whole remained the same.” says Mark Askew,
When looking at the last 12 months the gap between the cost of oil and LPG has increased with the falling oil prices. Furthermore, all other domestic fuel types have risen in costs over the past 12 months with wood pellets increasing the most.
LPG, used by some 170,000 off-grid households, still remains the most expensive fuel, costing a three bedroom home with a condensing boiler £1,923 per annum compared to electricity at £1587, oil at £1228 and gas at £1119.
Director general of OFTEC, Jeremy Hawksley, said: “This is very welcome news. Three years ago, based on condensing boilers, oil was 60% more expensive than mains gas but that gap has now narrowed to less than 10%. If current trends continue with gas and electricity prices increasing, oil is set to become even more competitive which is good news for our industry and our customers.”
The data also highlights that oil is the only fuel to have dropped in price over the last four years as electricity costs for a three bedroom home using Economy 7 have risen by 27.78%, costs for a gas condensing boiler have risen 34.01% whilst costs for an oil condensing boiler have dropped by 12.22%.
Mark Askew said: “The newest figures from the Sutherland Tables highlight what the FPS & OFTEC has known for some time – that heating oil is an extremely competitive choice right now.”