How much does an oil boiler cost to run?

If you live in a remote location, you may not have access to the gas grid, meaning that there is no way you can power your central heating with a gas boiler. Fortunately, oil boilers present a useful alternative, but how do the running costs compare with a gas boiler?

The cost of heating oil (kerosene) can vary of course, and you can often save money by shopping around and timing purchases when prices are low. At the time of writing, Home Fuels Direct was quoting a price of just under 65p per litre. Like modern gas boilers, today’s oil boilers are highly efficient, with them often having an efficiency rate around 95%.

Each litre of kerosene contains 10.35 kWh in potential heat energy, which translates into a unit cost of around 6.28p per kWh. In comparison, under the January 2024 price cap, gas is priced at 7.42p per kWh. When comparing gas and oil boilers with the same 95% efficiency, the oil boiler would be slightly cheaper to run.

It should be noted that the cost of fuel oil is closely related to crude oil prices, however, so this situation is always subject to change. Nevertheless, it demonstrates that oil boilers can be economical to run, making them a very attractive option for properties outside the gas grid.

Xgas has heating engineers in Wrexham and the surrounding areas that can install oil boilers, so get in touch to get a quote and learn about our financing options.