How to Save Money on Heating Oil: 15 Practical Ways to Cut Costs

Smart Buying Strategies

The first step to saving money on heating oil is paying less for each litre you buy. These strategies can save you hundreds of pounds per year.

1. Always Compare Prices

Potential Savings: £100-£200 per order

This is the single most important tip. Heating oil prices vary dramatically between suppliers — often by 10-20 pence per litre. For a 1,000-litre order, that's £100-£200 sitting on the table.

Don't assume your current supplier is cheapest. Use our price comparison tool to check multiple suppliers in seconds, every time you order. You can also explore our local suppliers directory to find trusted heating oil companies in your area.

2. Buy in Summer

Potential Savings: 5-15% on annual bill

Heating oil is cheapest between May and August when demand is lowest. If you can fill your tank in summer, you'll pay less per litre than buying the same oil in winter.

Case Study: A household ordering 2,000 litres in July at 52p/litre pays £1,040. The same order in January at 62p/litre costs £1,240. Annual saving: £200.

3. Order Larger Quantities

Potential Savings: 5-8p per litre

Larger orders get better per-litre prices because delivery costs are spread across more fuel. The price difference between 500L and 1,000L can be 5-8p per litre.

Order Size	Typical PPL	Cost
500 litres	60p	£300
1,000 litres	54p	£540
Saving per litre	6p	£60 saved

If you buy 2,000 litres per year in two 1,000L orders instead of four 500L orders, you save around £120 annually.

4. Join a Buying Group

Potential Savings: 2-5p per litre

Community oil syndicates negotiate bulk discounts. Check with your parish council, local Facebook groups, or neighbours to find one. OFTEC maintains a list of registered groups.

For a household using 2,000 litres per year, a 3p discount saves £60 annually.

5. Don't Wait Until Desperate

Potential Savings: £30-£50 per emergency avoided

Ordering when your tank is almost empty forces you to pay premium prices for priority or emergency delivery. It also removes your ability to wait for better prices or shop around properly.

Order when your tank drops to 25-30% capacity. You have time to compare, and you won't need expensive rush delivery.

Home Efficiency Improvements

Reducing how much oil you burn is just as important as paying less for it. These improvements often pay for themselves within a few years.

6. Insulate Your Loft

Potential Savings: Up to 25% of heat loss

Heat rises, and an uninsulated or under-insulated loft is like having a hole in your roof. Building regulations now recommend 270mm of insulation.

Cost: £300-£500 for DIY; £500-£1,000 professionally installed Savings: £100-£250 per year on a 2,000L household Payback: 2-4 years

7. Insulate Your Walls

Cavity Wall Insulation Potential Savings: Up to 35% of heat loss

If your home has unfilled cavity walls, getting them insulated is one of the most effective improvements you can make.

Cost: £400-£800 Savings: £150-£300 per year Payback: 2-3 years

Solid Wall Insulation More expensive (£8,000-£12,000 external or £6,000-£9,000 internal), but suitable for older properties without cavities. Grants are often available.

8. Draught-Proof Doors and Windows

Potential Savings: 5-10% of heating costs

Cold air entering and warm air escaping through gaps around doors, windows, and floorboards wastes significant heat.

Cost: £50-£200 for a full house (DIY) Savings: £30-£60 per year Payback: 1-3 years

Focus on external doors, windows (especially older sash windows), letter boxes, and floorboards.

9. Upgrade to Double or Triple Glazing

Potential Savings: 5-10% (from single glazing)

If you still have single-glazed windows, upgrading to double glazing makes a noticeable difference to comfort and heating costs.

Cost: £3,000-£8,000 (whole house) Savings: £50-£100 per year Reality: Rarely cost-effective for energy savings alone, but improves comfort, noise reduction, and property value.

Heating System Optimisation

Your boiler and heating controls directly affect how efficiently you use oil.

10. Service Your Boiler Annually

Potential Savings: 10-15% efficiency improvement

A well-maintained boiler runs more efficiently. During a service, the technician cleans the heat exchanger (removing efficiency-robbing soot), adjusts the burner, and replaces worn components.

Cost: £80-£150 per year Savings: £100-£200 on a 2,000L household Bonus: Catches problems before they become expensive repairs

11. Upgrade an Old Boiler

Potential Savings: 15-25% on fuel bills

If your boiler is over 15-20 years old, it's likely running at 60-75% efficiency. Modern condensing oil boilers achieve 90-95% efficiency.

Cost: £2,500-£5,000 installed Savings: £200-£400 per year Payback: 6-12 years

Worth accelerating if your current boiler needs expensive repairs.

12. Install Smart Heating Controls

Potential Savings: 10-15% of heating costs

Smart thermostats (Hive, Nest, Tado) learn your schedule, adjust heating based on occupancy, and let you control temperature remotely.

Cost: £150-£250 including installation Savings: £60-£150 per year Additional benefit: Convenience and control

13. Use Thermostatic Radiator Valves (TRVs)

Potential Savings: 5-10%

TRVs let you set different temperatures in different rooms. No point heating bedrooms to 21°C when you're in the living room.

Cost: £10-£30 per radiator (DIY installation) Savings: £30-£60 per year

Daily Habits That Save Oil

Small changes in behaviour add up to significant savings over a heating season.

14. Turn the Thermostat Down

Potential Savings: 10% for each 1°C reduction

The recommended temperature for most people is 18-21°C. If you normally set yours to 22°C, dropping to 20°C could cut your heating bill by 20%.

Try reducing by 1°C and see if you notice. Wear a jumper instead of heating the whole house.

15. Use Heating Timers Properly

No Cost. Significant Savings.

Set heating to come on 30 minutes before you wake up, not before
Turn it off 30 minutes before you leave — residual heat maintains comfort
Don't heat the house while you're asleep under a duvet
If you work from home, only heat the rooms you're in

Grants and Financial Support

Don't miss out on government support for heating costs and home improvements.

Winter Fuel Payment

Automatic payment of £100-£300 for pensioner households to help with heating costs.

Cold Weather Payment

£25 for each 7-day period of very cold weather if you receive certain benefits.

ECO4 Scheme

Funding for home insulation improvements if you receive qualifying benefits or live in an inefficient home. Can cover cavity wall, loft insulation, and more.

Boiler Upgrade Scheme

Provides £7,500 towards heat pump installation. Not directly for oil boilers, but worth considering if you're planning a system change.

Local Authority Support

Many councils offer emergency heating funds or top-up grants. Check your local council website.

Tracking Your Usage

What gets measured gets managed. Tracking your oil usage helps identify waste and optimise consumption. Use our oil usage calculator to estimate your annual consumption based on your home and heating habits.

Install a Tank Monitor

Smart monitors like Watchman Sonic or Kingspan Sensor connect to your phone and track:

Current oil level
Daily/weekly consumption rate
Alerts when you need to reorder
Unusual consumption that might indicate problems

Cost: £80-£150 Benefit: Never run out, spot waste quickly

Keep a Usage Log

Even a simple spreadsheet tracking deliveries, quantities, and bills helps you:

Compare year-on-year consumption
Spot the impact of efficiency improvements
Identify months where you're using more than expected

Benchmark Your Consumption

Typical consumption for UK homes:

Home Type	Annual Usage
Well-insulated 2-bed	1,000-1,500L
Average 3-bed	1,500-2,500L
Older 4-bed	2,500-3,500L
Large/draughty home	3,500L+

If you're using significantly more than these benchmarks, investigate insulation, heating controls, or boiler efficiency.

Frequently Asked Questions

What's the easiest way to save money on heating oil? Comparing prices every time you order. It takes 30 seconds with OilCompare and can save £100-£200 per order.

Are heating oil additives worth it? They can help with cleaner burning and longer storage life, but the savings are marginal. Focus on the bigger wins (comparison, timing, insulation) first.

How much can I realistically save in a year? A household spending £1,500 per year on heating oil could save £300-£500 through comparing prices, summer buying, insulation improvements, and better heating controls.

Is it worth switching to a heat pump? Heat pumps are the future, but they're expensive (£8,000-£15,000 after grants) and work best in well-insulated homes. For most oil users, optimising your current system while improving insulation is more practical for now.