Ofgem price cap drop – what does it mean for heating oil households?

Ofgem just announced a 7% drop in the price cap for electricity and gas from £1,758 per year to £1,641 per year, saving an average home £117 from April 1st. This will be a welcome drop for everyone on the main gas grid with prices stabilising since their skyrocketing in 2022, severely hitting the cost of living.

But what about heating oil? There is no cap for heating oil homes and prices are subject to market conditions. Whilst many off-grid will benefit from the electricity drop, it feels like heating oil is often forgotten about.

How has the price of heating oil changed in the past 3 years? How can you get a better deal on your heating oil?

Are heating oil homes getting a good deal?

Since January 2023, heating oil has seen a gradual decline back to pre-Russia/Ukraine crisis levels. Although growing geo-political tensions have caused some volatility in recent months, prices are looking pretty good.

Looking back at February 2023, the price was around 80 pence per litre. This February we’re seeing averages of around 55 pence per litre, a 31% reduction in costs. Without the impact of recent tensions, we’d estimate to still be around 50 pence per litre, that's 37% lower.

The Ofgem price cap in February 2023 was an eye-watering £4,279, although it was reduced in April 2023 to £3,280. The current price cap is £1,758, 46% lower than April 2023.

Whilst not on-par with Ofgem price cap, there has been a significant reduction in heating oil bills since February 2023.

There isn't a price cap on heating oil, prices are influenced by global oil production, however we've created a permanent price cut - all while saving you money on your other essential utilities.

Save on heating oil forever

4 pence per litre discount, forever. Sounds good right?

Our mission has, and always will be helping off-grid customers save on their essentials. This year we’ve teamed up with Utility Warehouse to find you a better deal on utilities plus up to 4 pence per litre off your heating oil, forever!

How does it work?

For each utility you take out with us, you not only save on electricity, broadband and mobile, you’ll also get 1 pence per litre off your heating oil. Plus a bonus 1 pence per litre for joining Connected.

For a typical household using roughly 1800 litres per year that’s around £70 a year saving on heating oil alone!

Heating oil savings are just the tip of the iceberg, you could also save £100s on your essential utilities as well.

Ready to find out more? Call the team on 020 7052 4743.