According to the latest figures from the Sutherland Tables, oil continues to be the only primary heating fuel to have fallen in price over the past three years, making it the cheapest option for off gas grid homes.

The Sutherland Tables is a recognised source of data on comparative UK domestic heating prices. It shows that the current annual cost of using oil to heat a three bedroom home in Great Britain is now 10.1% lower than the average cost reported over the last three years.

The same average figures for homes using electricity and LPG show an increase in heating costs of 23.9% and 2.2% respectively with LPG, used by some 170,000 off mains gas properties, remaining substantially more expensive than oil. The cost of heating a three bedroom home with a condensing boiler on LPG is £1,924 per annum - £734 more expensive than oil at just £1,190 per annum.

According to a new report from DECC published last month, the downward trend in oil prices is set to continue over the next two years with wholesale prices forecast to fall 11.9% by 2016. In contrast, gas prices are predicted to rise by 14.5% over the same period.

Director general of OFTEC (Oil Firing Technical Association), Jeremy Hawksley, said: “This is further positive news for oil households which have continued to benefit from relatively consistent heating costs over the past three years. While off gas competitors such as LPG are quick to highlight what they see as the disadvantages of oil, they rarely mention the issue that matters most to consumers – price.”

The latest figures also show that the price difference between gas and oil (used by an estimated one million off-grid households) has narrowed significantly. Three years ago oil was 51% more expensive than mains gas but now oil costs just 5.5% more, when using a condensing boiler.

Mr Hawksley adds: “With the efficiency of modern condensing oil boilers matching that of LPG and gas, plus the competitive price of oil, now is a good time to be an oil heating user.”