Oil vs Gas Heating: Which Is Better for Your Home?

Oil and Gas: The Two Main Fossil Fuel Heating Options

For UK homes connected to the mains gas network, the choice is simple — gas is the default. But for rural properties and those off the gas grid, heating oil (kerosene) is the most common alternative. If you're deciding between the two, or considering switching, here's what you need to know.

How Each System Works

Gas heating: Natural gas is supplied through mains pipework directly to the property. A gas boiler burns the gas to heat water for radiators and domestic hot water. No storage required.

Oil heating: Heating oil (kerosene) is delivered by tanker and stored in a tank on the property (typically 1,000–2,500 litres). The oil boiler draws from the tank as needed.

Cost Comparison

Fuel Costs

Fuel costs vary with market conditions, but typical approximate figures for 2025:

**Mains gas:** ~7p per kWh

**Heating oil:** ~8–10p per kWh

Gas is usually cheaper per unit of heat, though this varies with global energy markets. Historically, heating oil prices have been more volatile than gas.

Equipment and Installation

| Factor | Gas | Oil |

|--------|-----|-----|

| Boiler cost | £1,800–£3,500 | £2,000–£4,000 |

| Storage tank | Not required | £1,000–£3,000 |

| Annual service | £80–£120 | £80–£150 |

| Installer required | Gas Safe | OFTEC |

Running Costs (Typical 3-bed semi)

**Gas:** ~£1,200–£1,500 per year

**Oil:** ~£1,400–£1,800 per year (though this fluctuates more widely)

Efficiency

Modern condensing oil boilers (e.g., Grant, Worcester Bosch) achieve around 90% efficiency — very similar to modern gas condensing boilers. The technology is comparable; the difference is primarily in fuel cost and supply.

Practical Considerations

Oil advantages:

Available in areas without mains gas

Can buy in bulk when prices are low

No monthly standing charge

OFTEC engineers widely available

Gas advantages:

Cheaper per unit (usually)

No tank or delivery management

Stable supply (not weather-dependent)

More choice of engineers and equipment

Switching from Oil to Gas

If mains gas becomes available in your area, switching is often financially worthwhile over the long term — though the installation cost (new boiler, decommissioning the tank, pipework) needs to be factored in. We can advise on whether switching makes sense for your property.

Contact Halo Heating on 01483 676108 for oil or gas boiler installation and servicing.