UK Heating Oil Hits 92p/L: Should You Switch Fuels This Winter?

With heating oil sitting at 92.3p per litre, UK homeowners burning oil are facing another expensive winter. But before you resign yourself to high bills, it's worth comparing your options against mains gas, electricity and wood pellets—all of which have shifted in competitiveness this year.

The Current Price Landscape

Here's where the four main heating fuels stand right now:

• Heating oil: 92.3p/litre (ex. VAT)
• Mains gas: 6.04p/kWh (Ofgem cap)
• Electricity: 24.5p/kWh (Ofgem cap)
• Wood pellets: 7.2p/kWh

The gap between oil and gas remains significant. To put it bluntly: if you're on heating oil and mains gas is available to your property, the maths are increasingly hard to ignore.

The Case Against Staying on Oil

Heating oil continues to track global crude prices and geopolitical volatility—factors largely outside your control. At 92.3p/litre, oil remains roughly 15 times more expensive per unit of energy than mains gas. For a household burning 2,000 litres annually, that's a stark difference in annual spend.

Electricity, at 24.5p/kWh, is still expensive for direct heating. However, air source heat pumps and modern electric boilers are becoming increasingly viable, especially if your home has good insulation.

The Wood Pellet Alternative

Wood pellets at 7.2p/kWh are marginally cheaper than mains gas and offer independence from grid price caps. However, wood heating requires space for storage, regular maintenance of a stove or boiler, and a reliable local supplier. It's not a realistic option for all homes.

What Should You Do?

Step one: Check whether mains gas is available to your address. If it is, request quotes from mains gas suppliers. Connection costs have fallen, and long-term savings typically justify the investment within 5–7 years.

Step two: If you're staying on oil for now, compare rates across suppliers today. Prices fluctuate daily, and locking in a fixed contract before autumn can protect you against further rises. Compare heating oil prices to ensure you're not overpaying.

Step three: If neither gas nor wood heating work for you, explore electricity pricing and whether heat pump technology makes sense for your property.

The Bigger Picture

As UK households navigate volatile global energy markets, the advantage of mains gas and renewables (including wood pellets) continues to widen against oil. The Ofgem price cap provides some stability on gas and electricity, whereas heating oil remains exposed to crude price swings.

Your action: Don't assume your current fuel is the cheapest option. Spend 15 minutes comparing alternatives—it could save you hundreds this winter.