Oil central heating remains a common choice for UK homes that aren’t connected to the mains gas network. This guide covers how it works, what installation involves, and what to expect in terms of running costs and maintenance.
Why Homes Use Oil Central Heating
Around 1.5 million UK homes rely on oil heating, mostly in rural areas without a mains gas connection. Oil boilers heat water for both central heating and hot water, working in a similar way to a gas system, but drawing fuel from an on-site storage tank instead of a pipeline. For a broader explanation of how central heating works generally, see our central heating explained guide.
How an Oil Heating System Works
Oil is stored in a tank outside the property and fed to the boiler, where it’s burned to heat water. That water circulates through radiators and, where applicable, provides hot water via a cylinder. Modern oil boilers are condensing models, which recover extra heat from exhaust gases for improved efficiency.
Installation and Certification
Oil heating installation and servicing in the UK must be carried out by an engineer registered with OFTEC, the recognised body for oil-fired heating standards, in the same way gas work requires a Gas Safe registered engineer. Installations should also meet British Standard BS 5410 for oil firing appliances.
Oil Tank Considerations
- Tanks need enough outdoor space, with clearance from boundaries and buildings as set out in building regulations
- Bunded tanks include a secondary containment layer, reducing environmental risk if the tank leaks
- Tank size affects how often you need to reorder fuel, with larger tanks reducing delivery frequency
Running Costs and Efficiency
Oil prices fluctuate more than gas, so costs can vary noticeably between deliveries. Buying in bulk, or as part of a local oil buying group, can help reduce costs. A well-maintained, high-efficiency condensing boiler makes a meaningful difference to how far each tank of oil goes.
Maintenance Requirements
Annual servicing by an OFTEC-registered engineer keeps the system running safely and efficiently, and is often a requirement of home insurance policies. Between services, keep the area around the tank and boiler clear, and check for any signs of oil leaks or staining.
Oil Heating vs. Other Options
Heat pumps are increasingly considered as an alternative to oil heating, particularly for off-grid properties. Our heat pump running costs guide covers how the two compare financially. For a lower-cost way to manage bills in the meantime, see our guide to heating a house for cheap.
Frequently Asked Questions
Is oil central heating being phased out in the UK?
There are proposals to phase out oil boiler installations in future years as part of wider decarbonisation plans, though existing systems can continue to be serviced and used.
How often should an oil boiler be serviced?
Annually, by an OFTEC-registered engineer, both for safety and to maintain efficiency and any relevant insurance or warranty requirements.
Is oil heating cheaper than gas?
It varies with market prices for both fuels, though oil is often the only practical option for homes without a mains gas connection.

