Heating Oil Price Update: January 2026 – What UK Homeowners Need to Know

January 2026 Heating Oil Price Summary

As we move through the heart of winter, heating oil prices have seen a modest increase of around 4% compared to late December. Based on our aggregated price data from suppliers across the UK, the average price per litre currently sits at approximately 60p, up from around 58p at the end of 2025.

This increase is consistent with typical seasonal patterns—demand peaks during the coldest months, and suppliers adjust pricing accordingly. However, the good news is that prices remain significantly below the highs seen in previous winters.

Key Findings from Our Data

Our comparison platform has observed the following:

Metric	Value
Average price per litre	~60p
Lowest price recorded	~52p/L
Highest price recorded	~75p/L
Most popular order size	500 litres
Price variation between suppliers	Up to 20p/L

The price variation between suppliers is significant—we've seen differences of up to 20 pence per litre for the same postcode and quantity. This reinforces why comparing prices before every order is essential.

Regional Price Variations

Our data shows notable regional differences across the UK:

Most Competitive Areas:

East Midlands (Nottingham, Lincoln areas) – averaging around 57-59p/L
East Anglia (Norfolk, Suffolk, Cambridgeshire) – averaging 58-60p/L
Northern Ireland – averaging 58-59p/L

Higher Price Areas:

Scottish Highlands – averaging 70-75p/L (reflecting delivery logistics)
Remote rural areas – typically 3-5p/L premium

These variations highlight the importance of checking local suppliers rather than assuming national averages apply to your area.

Why Prices Have Risen This Month

Several factors are contributing to the January price increase:

1. Peak Winter Demand January typically sees the highest heating oil consumption as temperatures drop. This month has been no exception, with cold snaps across much of the UK driving up orders.

2. Global Oil Market Movements Brent crude prices have remained elevated in early 2026, influenced by ongoing geopolitical factors and OPEC+ production decisions. While wholesale kerosene prices don't directly mirror crude, they do follow similar trends.

3. Delivery Capacity Constraints High demand periods can stretch supplier delivery schedules, and some customers pay premium rates for faster delivery when stocks run low.

Volume Discounts: The Data

Our analysis confirms that ordering larger quantities typically results in better prices per litre:

Order Size	Average Price
500 litres	~61p/L
700-800 litres	~59-60p/L
1,000 litres	~60p/L
1,200+ litres	~59p/L

If you have the tank capacity and budget, ordering 800-1,000 litres offers a good balance of value and practicality for most households.

What to Expect in February

Looking ahead, prices could move in either direction:

Factors that could push prices down:

Milder weather reducing demand
Post-winter stock clearance from suppliers
Stabilising global oil markets

Factors that could keep prices elevated:

Continued cold weather extending into late winter
Any supply chain disruptions
Further global oil price volatility

Historically, prices begin to soften from March onwards as the heating season winds down. If you can hold off on a large order until late February or March, you may find better deals—but only if your tank levels allow.

How to Get the Best Price Right Now

Despite the seasonal increase, there are still ways to secure competitive pricing:

1. Compare Multiple Suppliers The 20p/L price variation we've observed means comparing is non-negotiable. Use our price comparison tool to check current rates from suppliers in your area.

2. Don't Wait Until Empty Ordering when your tank is critically low limits your options. Aim to reorder at 25-30% capacity to give yourself time to find the best deal.

3. Consider Mid-Week Orders Some suppliers offer slightly better rates for deliveries scheduled mid-week when their schedules are less congested.

4. Check Local Independents While national suppliers have broad coverage, local independent suppliers often offer competitive pricing—particularly for regular customers. Browse our local suppliers directory to discover options in your area.

The Bigger Picture: 2026 Outlook

While January's 4% increase may feel unwelcome, it's worth putting current prices in context. Heating oil costs remain well below the peaks of 2022-2023 when prices exceeded 90p-100p per litre during the energy crisis.

The market has stabilised considerably, and homeowners who compare prices consistently are well-positioned to manage their heating costs effectively throughout the year.

Summary

January 2026 has brought a modest but expected seasonal price increase for heating oil across the UK. With average prices around 60p per litre and significant variation between suppliers, comparing quotes remains the single most effective way to reduce your heating costs.

Don't assume your regular supplier offers the best rate—check the market before your next order and you could save £50-100 or more on a typical delivery.

Data source: Aggregated anonymised pricing data from OilCompare's supplier network, January 2026.