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Cost of Oil Central Heating

I thought it would be helpful to share a comparison of the cost of Oil Central Heating.  I'll put the raw figures below but the headline is that Oil Central Heating is on a par with Mains Gas.  That would also imply it is on a par with Heat Pumps too since Heat Pumps are on a par with Mains Gas.

I record my oil usage in order to predict when I'll get low and so when I need oil.  I noticed that I order oil about this time in 2022 so it's a good time to calculate my usage (over a 2yr period).  I ordered 600 l in Jan 2022 which was delivered 24 Jan and my guage went up to 80-90%.  I've current odered 500 l which I estimate will put me higher but that depends on when they deliver and how cold the weather is so let's assume I only end up with the same level in the tank.  Over 2yrs I've used an average of 1540 l at a cost of £1,116, per year (i.e. I've divided by 2, just in case anyone is going WOW).  Heating oil (28sec) is 10.35 kWh/l and my boiler says it is 84% efficient (it is not condensing BTW).  Hence I get 8.69 kWh/l out of the boiler giving an annual figure of 13,384 kWh.  That equates to 8.34 p/kWh.  That is over the 2 yr period when I've paid as low as 7.2p/kWh (Jan 22) up to 9.1p/kWh (Aug 22), 9.4p/kWh  (Jan 23), down to 7.5p/kWh (Mar 23) and back to 8.4p/kWh (Nov 23).  Today's price BTW is 7.8p/kWh.  All of these are based on 8.69 kWh/l so are the cost of the delivered heat (according to bolier figures)

Moneysavingexpert site says mains gas on the price cap is currently 7.62p/kWh and 29.59 p/day standing charge.  My son's (condensing) gas boiler is 93% efficient (according to its manual).  Hence the cost for 13,384 kWh delivered by 93% efficent boiler and 365.25 days of standing charge is a total of £1,205 or 9p/kWh.  Hence not a lot of difference to the cost for Oil Central Heating.

And as I said above similar to cost of Heat Pumps which multiple the incoming kWh by ~3 but electricity costs 28.71p/kWh so this is ~9.6pkWh for delivered heating.

by Dr. Radut.