Heating oil prices have fallen by a further 4.7% over the past three months to reach a six year low, according to the latest figures from the Sutherland Tables.
As a result, oil is now 18.5% cheaper than mains gas to heat the average home.
The Sutherland Tables is a recognised independent source of data on comparative domestic heating prices and these latest figures show that oil continues to be, by far, the cheapest of all major heating fuels, costing just £886 a year to heat an average three bedroom home in Great Britain. The cost of heating the same property by mains gas, the second cheapest option, is £1,087.
When comparing the equivalent cost of oil with LPG and electricity, the other main heating fuels used by off gas grid households, the extremely favourable oil price becomes even more apparent. Oil is currently 44% cheaper than LPG, despite a small drop of 2% in LPG prices and 45% cheaper than electricity.
The new figures also show a regional variation in oil prices, with the lowest cost seen in the South West of England and Wales, at just £803 per annum, and the highest annual cost of £1,000 in Scotland. Oil consumers in the Midlands are also faring well, with an average annual cost of £846.
OFTEC director general Jeremy Hawksley said: “While other major heating fuel costs have remained fairly stable, oil prices continue to fall substantially and are now at their lowest point since April 2009. In fact, oil prices have more than halved since they peaked in the early summer of 2013.”
He continued: “This undoubtedly spells good news for industry and Great Britain’s one million oil using households, especially as the colder weather is now only a few months away and prices are predicted to remain low for the foreseeable future.”