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LPG vs Oil for new property

ExecutiveSuite
ExecutiveSuite Posts: 1 Newbie
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I'm buying a new domestic property and the builder has given me a choice between oil and lpg heating at no installation cost to me so it boils down to personal preference over the utility and price. There doesn't seem to be a great difference in the price per litre though I have read many of the rip off stories in the forum pertaining to LPG.

I notice the new rules over length of contract and transfer of storage tank for LPG so are the bad days behind us? Other things being equal I'd have gas in preference so am I being over cautious in being wary of it?

Any comments gratefully received.

Paul

Comments

  • welda
    welda Posts: 600 Forumite
    Oil may work out cheaper in the long run, with LPG, tank/s do not belong to you, where as oil, storage tank belongs to property owner, more oil suppliers compared to LPG = better chance of a competitive price?

    My thoughts only and, may be a tad wrong re; LPG storage tanks???

    :beer:
  • LittleVermin
    LittleVermin Posts: 737 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    edited 5 October 2011 at 11:29PM

    Any comments gratefully received.

    Paul

    Welcome Paul / ExecutiveSuite !

    Both oil and LPG are expensive compared to mains gas. See here for relative energy costs for different fuels.

    LPG has the advantage that you can cook with it - but you could just have cylinders for your gas cooker. And of course you can have an oil-fired Aga ...

    There is not a working market for either heating oil or LPG in the UK. DCC is buying up independent oil distributors - see here. Flogas (owned by DCC!) and Calor have around 70% of the LPG market - with BP and Shell having around 10% each (and wanting out, many people believe) with the rest divided among maybe 40 independents.

    Ideally you would NOT need to get locked into a 2 yr contract for LPG as you can own your own tank. I would choose an above-ground one as we get lots of tales of grief about tank testing and switching for underground ones. Tanks need to be checked annually - but this is a quick visual test done by the delivery driver. Every 10 years there needs to be a major ultrasound test but there are independent gas engineers who'll do this (they get hired by most of the suppliers too).

    So I'd suggest you find out who'll supply you with LPG (use the UKLPG website - and contact farmers' co-ops like Mole Valley Farmers) and also ask if they'll supply you if you own your own tank. For Norwich it seems Flogas, Calor, Shell, BP and Extra Fuel will supply you. Extra Fuel certainly will fill self-owned tanks - they're based in Manchester so will probably get a third party to deliver.

    For oil there's less of a problem as you just look up yellow pages, etc - but also see if there's a local buying co-op.

    But either way prices will tend to go up roughly in line with crude oil. Maybe you'd be better off with a ground-source heat-pump? Or even air-source? Or using wood-pellet fuel?

    For both oil and LPG tanks there are H&S regs and industry codes of practice. Check your builder is abiding by them - or leaving enough space for the rules to be met.

    If your builder is building several houses in the vicinity maybe you can set up a buying consortium with other new owners? There are quite a few oil consortiums, fewer LPG ones.

    Hope that helps! Lots more on the 'Bulk LPG .. ' thread - the main thread for bulk LPG! (And it's a 'sticky' - so it always sticks around at/near the top of the board).

    PS There are people who say do NOT choose LPG ...so this is worth bearing in mind as you'll want to sell sometime.

    ..
  • david29dpo
    david29dpo Posts: 3,965 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I had the same 16 years ago. There are more LPG boilers to choose from and i wanted a gas fire and hob. I went for LPG. However, you have to play the game with the suppliers (i have and saved a small fortune over the years) I have never changed suppliers (Listers, ALWAYS use a local company) but "blackmailed' them to lower the price.
  • squelch41
    squelch41 Posts: 36 Forumite
    Respectfully, the poster is asking about LPG vs Oil as that is what the constructor will pay for. Therefore I assume any other option is off the table.

    If that is true then:
    LPG:
    Pros - Low CO2, low sulphur. Supply company takes on the risk of tank and can also use to supply gas hobs for cooking. Boilers often quieter and (slightly) lower maintaince than heating oil (AFAIK). Cant really steal LPG from a tank (imagine results would be quite spectacular!)

    Cons - You will have a 2 year supply contract during which there is no option to 'shop around' - therefore do your research and state to your builder WHO YOU WANT - (My recommendation - not Flogas!) During those 2 years, the price can (and will) rise from the initial cost.

    If your builder mentions anything about metered estates/supplying more than one house from the LPG tank, choose oil.

    Oil:
    Pros - proper market - can shop around on each tank fill & may be local co-operative to reduce costs per order further.

    Cons - You are responsible for the tank - criminally if the tank has a big leak and doesnt have adequate ground protection (as the other poster said, make sure the builder is following the rules!). More CO2 and sulphur. Easier to steal from. Oil boilers a bit noisier and need more maintainance (AFAIK).

    I hope that helps

    We have LPG and in terms of a fuel to cook with as well as heat with, its great. The tank sends automatic orders for more gas when it gets to 20% which is useful. The kicker is whether you are willing to accept the 2 year tie-in. Bear in mind that the cost you will be quoted by the companies at sign up will rise over that period. http://www.extrafuel.co.uk is the only supplier that pubishes its prices month-on-month
  • oldtractor
    oldtractor Posts: 2,262 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Mortgage-free Glee!
    I have oil I prefer it to LPG.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I know it's not what you asked but you've already had the best advice on LPG/Oil so:

    if starting from scratch I would discuss alternatives with builder : heat pumps, solar, etc

    Even if you had to share higher inatall costs with builder, longer term you'd be much better off.

    I'm very sceptical about the economies of retro-fitting alternatives where properties already have heating systems, but new build......
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