Data of the most common heating fuels used in the home has revealed that liquid fuel had the lowest average running costs over the past four years, cited OFTEC.
The independent findings were published by the Sutherland Tables which compares the annual space and water heating costs for different technologies in an average three bedroom property.
The latest figures for Great Britain showed that between June 2020 and June 2024, the average yearly running cost for a condensing liquid fuel boiler was £1,231. LPG condensing boilers were 31% higher at £1,620 whilst electric storage heaters were more than double the cost at £2,866.
Liquid fuel heating was also slightly cheaper than gas condensing boilers, which averaged £1,283, and was also cheaper than renewable options such as wood pellets or heat pump, it was found.
In Northern Ireland and the Republic of Ireland, liquid fuel was also the cheapest form of domestic heating over the same period, averaging £1,161 and €1,640.
Malcolm Farrow, head of public affairs at OFTEC, said: “These new figures will be welcome news for the 1.7m UK homes that rely on liquid fuel for their heating, particularly at a time when we have all experienced a squeeze on household spending. Like all energy prices, liquid fuel was not immune to price fluctuations due to the Covid pandemic and the war in Ukraine. However, the four-year average dispels the myth that liquid fuel heating is an expensive option. Prices are also expected to stay competitive with other fuels over the coming months.”
OFTEC has urged the government to support the rollout of renewable liquid fuels by equalising the tax duty with kerosene, when it is used for domestic heating and setting up a supplier fuel obligation. The trade association argues that this will provide an affordable, low carbon alternative for oil heated homes who would be able to transition with minimal cost and disruption.