UK Energy Prices June 2026: Which Fuel Offers Best Value?
With gas at 6.04p/kWh and oil at 97p/litre, we compare all major heating fuels to help you cut costs this summer.
Summer may be here, but now is the time to plan your winter heating strategy. With energy prices holding relatively steady through June 2026, understanding which fuel offers the best value for your home has never been more important.
Where Prices Stand
The current Ofgem price cap keeps mains gas at 6.04p/kWh, while electricity sits at 24.5p/kWh. For those relying on heating oil, prices remain elevated at 97p per litre excluding VAT. Meanwhile, wood pellets continue to offer competitive value at 7.2p/kWh.
These figures tell a clear story: the cost-per-unit gap between fuels remains substantial, but not all homes have the same options.
Fuel-by-Fuel Breakdown
Mains gas remains the cheapest option for connected properties, delivering reliable heat at the lowest unit cost. If you're on gas, there's little financial incentive to switch—though fixed-rate deals are worth reviewing before autumn.
Electricity at 24.5p/kWh makes it the most expensive fuel for traditional heating. However, those with air source heat pumps or modern heat pump technology can achieve better efficiency rates, making electricity more cost-effective than the raw p/kWh suggests.
Heating oil users face the steepest bills. At 97p/litre, oil remains roughly 16 times more expensive than gas per unit of energy. If you're off-mains, this is your reality—but bulk-buying and tank sharing with neighbours can help spread costs.
Wood pellets at 7.2p/kWh represent genuine savings for those with suitable boilers or stoves. The catch: you need proper storage, delivery logistics, and a compatible heating system.
What You Should Do Now
1. Check your current fuel type and contract end date. Summer is quieter—suppliers respond faster to queries, and you'll lock in rates before autumn demand spikes.
2. Compare fixed-rate deals if you're on mains gas. Even small savings per kWh compound over winter.
3. If you use heating oil, compare suppliers and ask about bulk-buying discounts or cooperative arrangements with local properties.
4. Evaluate alternatives for next winter. For off-mains homes, wood pellet boilers could reduce your heating costs significantly, though upfront investment is substantial.
5. Don't ignore electricity prices. If you're considering a heat pump upgrade, June 2026 pricing makes the case clear: the efficiency gains matter more than the unit rate.
The Bigger Picture
UK energy markets remain volatile, shaped by global supply chains, grid demand, and seasonal fluctuations. Prices typically rise in autumn—historically, June through August is your window to negotiate better terms or lock in rates.
Whether you're paying 6p or 97p per unit, the most expensive energy is the energy you waste. Insulation improvements, draught-proofing, and smart thermostat use will always deliver better returns than waiting for prices to fall.
Start your comparison today. Small differences in unit rates become significant savings over a five-month winter.