Heating oil prices: this month's UK price and what drives it

Heating oil prices in the UK have swung harder in 2026 than in most recent years. On 11 October 2026, the UK average for kerosene was between 119.5p and 121.1p per litre including VAT, for a 1,000 litre order. We check this figure once a month, so treat it as a snapshot, not a live price.

This month’s price

If you came here looking for heating oil prices today, or the central heating oil price today in your postcode, you need a live quote. Both trackers above update daily and let you enter your postcode. Prices vary by area and by supplier, and the national average hides those differences.

Watch for VAT when you compare. Some sites show prices ex VAT and some include it. A price of 115p ex VAT is about 121p once 5% VAT is added.

What drives heating oil prices

Heating oil isn’t covered by the Ofgem price cap. The government’s own statistics describe liquid fuel prices as less regulated than gas and electricity, and say they move with demand, weather, location and delivery costs. Here are the main forces.

Crude oil and world events. Kerosene is refined from crude, so a jump in crude feeds through within days. DESNZ figures show UK liquid fuel prices were 90.2% higher in April to June 2026 than a year earlier, after taking inflation into account. The department puts this mainly down to the rise in crude oil prices caused by conflict in the Middle East.

Jet fuel. Heating oil is chemically very close to aviation fuel, and the UK industry body UKIFDA says the wholesale price of jet fuel on the European market is the main driver for heating oil in the UK and Ireland. When airlines compete for supply, homes pay more too.

The pound. Oil is traded in dollars. A weaker pound makes the same barrel cost more in sterling.

The season. Demand climbs as the weather turns cold, and Boilerjuice notes that prices usually fall in summer and rise in winter. A cold snap can also stretch delivery times, which gives suppliers less reason to discount.

Where you live. Prices vary by postcode. Boilerjuice builds its UK figure by averaging the lowest price in each postcode district, so the price on your own quote may sit above or below the national average.

Recent price moves

This short heating oil price chart uses one tracker, Fueltool, so the figures compare like with like. They are UK averages for a 1,000 litre order, shown ex VAT and with VAT added.

The jump from mid-July to mid-September added roughly 40p a litre. On a 1,000 litre fill, that is around £400 more for the same oil, which is why the timing of your order matters so much.

How to get a better price

You can’t control crude oil, but you can control when and how you buy.

• Order outside winter. Prices usually dip in summer, as this year’s July low shows. Fill up then and you avoid the autumn rush. Don’t leave it until the tank is nearly empty, because that forces you to buy at whatever the price is that week.
• Buy in bigger loads. Small orders cost more per litre. On 11 October 2026, Fueltool’s 500 litre rate was 115.93p ex VAT against 115.35p for 1,000 litres. If your tank can take a larger delivery, the saving adds up over a winter.
• Think about tank size. Your tank decides how much cheap oil you can store. A small tank means more frequent, smaller orders, often in the middle of winter when prices peak. If your tank is due for replacement anyway, ask whether a larger one fits safely on your site, since a bigger tank lets you fill up once in summer and ride out the cold months.
• Join a buying group. Oil clubs, often run by parish councils or community groups, pool orders from many homes and ask suppliers to bid for the lot. Search for one in your area, or ask neighbours.
• Get several quotes on the same day. Prices change daily. Comparing quotes from different days tells you little.
• Ask about standard delivery. Paying for an urgent or named-day slot usually costs extra. Planning ahead avoids that.

The other half of the bill is how much oil you burn. A boiler that is serviced every year, good heating controls and a well-insulated loft all reduce how often you need to fill the tank.

When switching away from oil makes sense

If your oil boiler is near the end of its life, the numbers have rarely been better for switching. In England and Wales, the Boiler Upgrade Scheme gives £9,000 towards an air source or ground source heat pump for off-gas-grid homes replacing oil or LPG, for applications made between 21 July 2026 and 31 March 2027. After that, the grant is due to drop back to the standard £7,500.

Switching is worth a serious look if:

• your boiler is old, needs a costly repair, or your tank needs replacing
• you can fit the work in before the £9,000 window closes
• your home is reasonably insulated, or you can improve it
• you’re tired of price swings like this year’s and want a bill tied to electricity instead

It makes less sense if you’ve just fitted a new oil boiler, or if you’re planning to move soon. Read our heat pumps guides to see how they work in off-grid homes, check the grants hub for what you can claim, and browse off-grid heating for other options. In Scotland, Home Energy Scotland offers its own heat pump grant with an extra £1,500 for rural homes.

Questions people ask

Sources

• Boilerjuice: UK kerosene prices (UK average inc. VAT, checked 11 October 2026)
• Fueltool: heating oil price trends (daily UK averages, 500 and 1,000 litre bands)
• DESNZ: Quarterly Energy Prices, September 2026
• UKIFDA: why are heating oil prices going up
• GOV.UK: Boiler Upgrade Scheme, what you can get
• Ofgem: BUS guidance for property owners, version 5.1
• Home Energy Scotland: grants and loans