Oil can be used for central heating and water heating.
Oil is stored in a tank above ground and is delivered to properties via a pipeline running from the tank.
The average installation cost of an oil heating system is around £6,000*, putting it at around £2,000 more than an LPG installation.
The significantly higher installation costs are due to the fact that oil boilers are generally more expensive to purchase than LPG boilers and additionally the oil tank has to be purchased by the home owner.
Since new legislation was introduced in 2005, certain oil tanks have to be bunded, increasing installation costs.
Historically, the running cost of oil has been cheaper than LPG, although the
recent increases means that this is no longer the case.
Running costs woud be around £1000 per annum*.
Over recent years, oil prices have been unstable and volatile – with dramatic price increases meaning it can be difficult to keep control of energy bills.
Oil emits 24 percent more CO2 than LPG but 40 percent less than
Oil and fuels are the most frequently reported type of water pollutant investigated by the Environment Agency in England and Wales and account for over a quarter of all severe pollution incidents.
With oil, a customer has the freedom to change supplier at any time. They can choose who their fuel is delivered by – meaning they can shop around and take advantage of any fuel price reductions that individual suppliers might offer.
Like with LPG, there is a wide choice of appliances available from leading manufacturers.
As oil customers own their storage tanks you will be responsible for its installation, maintenance, annual servicing and insurance.
The owner of an oil tank is liable for leakage however it is caused – whether through poor installation, insufficient maintenance or vandalism.
Some of the UK’s leading insurers do not provide cover for oil storage tanks.
Very strict regulations are in place for oil storage, and if these are breached the consequences can be severe. Failure to comply with environmental regulations is a criminal not a civil offence.
When an oil spillage occurs, the council can declare the ground contaminated under the Environmental Protection Act.
The way oil spreads means even a small quantity can cause serious harm – five litres is enough to cover a small lake.***
Oil tanks can be siphoned, posing a security issue.
Oil installers do not have to be OFTEC registered, so there is no governing body like CORGI protecting property owners.
There are just 9,800 official oil installers in the UK.
You will usually have to invest in another fuel for cooking.