How to read a heating oil quote

Home heating oil is the only household fuel in Ireland with no meter, no standing charge and no contract. You ring around, you get a price, you order. That sounds like the simplest market of the four — and it is the one where identical-looking quotes are most often not comparable.

Kerosene is the only product that matters

Almost every Irish domestic oil boiler burns kerosene, also sold as home heating oil or 28-second oil. Distributors also sell gas oil (agricultural diesel, marked green, 35-second) which is heavier, mainly for farm and commercial burners, and premium kerosene with additives claimed to improve combustion and reduce sludge.

Make sure you are pricing the same product. A gas oil quote will look cheaper per litre than kerosene and is the wrong fuel for a standard domestic boiler. A premium kerosene quote will look dearer than standard kerosene and is a different product too. If a quote is unusually low, check the grade before you check anything else.

The quote is per litre; the price is per delivery

Distributors quote a price per litre, but that price is a function of the order size. A 500-litre order and a 1,000-litre order do not carry the same per-litre price, because the delivery costs the distributor almost the same either way. The per-litre gap between a small and a large fill is routinely several cents.

That is why our heating oil price comparison publishes prices at fixed order sizes — 500 litres and 900 litres — rather than a single headline rate. Two quotes are only comparable at the same volume.

When you ring for a quote, ask for the price at the volume you will actually order, not the best price they can do. And check the minimum order: most distributors will not deliver below 200 or 300 litres, and some set the minimum higher in rural areas.

VAT, and the number that is on the invoice

Home heating oil carries VAT at the reduced 13.5% rate, not the 9% that applies to electricity and gas, and not the 23% standard rate.

Some distributors quote including VAT and some quote excluding it. This is the single biggest cause of two quotes appearing to differ by a fortune when they do not. Always ask “is that including VAT?” — the difference on a 900-litre fill is substantial. Prices we publish are VAT-inclusive.

The quoted price also has carbon tax built into it. It is not shown separately on a domestic oil invoice, and it rises with each Budget, but it is there in every cent-per-litre figure you are given.

Checklist before you say yes

• Is it kerosene, and is it standard or premium?
• Is the price including VAT?
• What volume is that price for? Get the price at your volume.
• Is delivery included? Most quotes include it within the distributor’s normal area. Some add a charge for long lanes, restricted access, a long hose run, or delivery outside a standard round.
• How long is the price held? Oil prices move daily. A quote is typically good for that day only, sometimes 24 to 48 hours. Ask, and if you are ordering, order while it stands.
• What is the payment term? Card on order, cash on delivery, or an account. Some distributors offer a small discount for cash or immediate payment.
• When will it be delivered? Two to five working days is normal; in a January cold snap it can stretch to a fortnight.
• Is there a top-up or minimum-fill condition? A tank that only needs 250 litres may not be worth a distributor’s trip at the quoted price.

Converting to a comparable number

If you want to compare oil against gas or electricity rather than against another oil quote, convert to cost per kilowatt hour. Kerosene contains roughly 10 kWh per litre, so:

cost per raw kWh ≈ price per litre ÷ 10

Then divide by your boiler’s efficiency — around 0.85 to 0.90 for a serviced condensing oil boiler, considerably less for an old one — to get cost per useful kWh delivered into the house. That is the figure that is directly comparable with a gas unit rate or an electricity unit rate. Our guide to the cheapest way to heat a home works the comparison through for every fuel.

When to buy

Oil is the only one of these markets where timing genuinely matters, because you are buying a stock rather than a flow.

Prices track crude oil and the euro–dollar rate, with a seasonal demand overlay. The pattern most years is that summer is cheaper than winter, and the worst time to buy is during a cold snap, when demand spikes and delivery slots vanish simultaneously. Filling in July or August rather than December is the single largest saving available in this market, and it costs nothing but planning.

Two practical tactics:

• Buy larger. The per-litre price falls with volume, so if the tank and the cash allow it, a 900-litre fill beats two 500-litre fills.
• Do not run to empty. Beyond the risk of sludge from the bottom of the tank being drawn into the line, running dry removes all your ability to wait for a better price. Order at about a quarter tank.

Some distributors offer budget plans — a fixed monthly payment building credit toward fills. They smooth cash flow and they are convenient, but check whether you are locked to that distributor’s price on the day rather than free to shop around, because that is where the cost of the convenience usually sits.

Checking your tank

Know your tank size before you ring: 1,000 litres is a common older size, 1,200 to 1,350 litres typical for newer installations. A float gauge or a dipstick will tell you what is left. Order the difference, not the tank capacity — a delivery that cannot fit is an argument you do not want on the driveway.

Current indicative prices by county are on the heating oil comparison, and if you also heat water or cook with gas, the gas comparison is worth a look at the same time.