Oil Vs LPG - New Connection (almost)

Garyh1975

So, dilemma on our hands. We are currently in the process of moving our existing LPG tank to a new compliant location. With recent news on gas prices, we are now considering whether moving to oil is the more sensible option. Yes, aware the initial set up cost may be more expensive, and we will need to consider our internal heating (we have limited anyway, an old LPG Aga which needs replacing, with a wet system running off it which heats half the house). With all this in mind, do we move over to oil now, or risk LPG prices potentially spiralling or returning to normal. If we do move to oil, we will need to grit our teeth for this winter whilst we replace the whole internal systems (but this needs doing anyway - recently purchased old farmhouse) - any thoughts??

Mister_G

As I wrote elsewhere:

I think that you will find that LPG is a "waste product" from the refining of oil and therefore its price is more linked to the crude oil price rather than the natural gas price.

As oil prices are currently more stable than gas at the moment, I do not see it suffering the same increases as gas is going through.

Cardew

My thoughts are it is like asking who will win the 2:30 at Newmarket next year.

Predicting long term trends for energy prices are impossible for experts let alone us mortals.

Personally I would gamble on Oil!

Rodders53

LPG gas boilers are usually cheaper than oil boilers.  Moving the gas tank will cost £x. But may retain the gas paid for already in it?

A new (bunded) oil tank install £y plus boiler £z   --  likely not much change out of £6k?  Plus the oil to fill.

New extra radiators are needed anyway, so larger rads for lower water temps may be a 'no brainer' as the cost increment is small .?  So consider and cost out a heat pump installation, perhaps?

But any solution is not cheap and needs accurately costed supply/install prices plus the estimated heat required per annum for your home.  So do some 'guess'timates on fuel prices, now and future, to deliver that heat via the three possible methods:  Bulk LPG, Oil and Electric Heat Pump.

NB Oil is simpler to steal than Bulk LPG.

lohr500

Perhaps also worth considering are the running costs. I don't know what the current price of LPG is per litre, but you need to factor in that 1 litre of LPG equates to around 7kWH, vs 1 litre of kerosene giving around 10kWh. Both before any energy loss through boiler inefficiency. The latest cost for heating oil in my area (North Yorkshire) is £0.48 per litre inc VAT. So circa £0.048 per kWh. I stuck with oil when we finally scrapped our 35 year old oil boiler earlier this year. There seems to be lots of competition on oil supply in our area do I always shop around for the best when filling up and try to max out the quantity each time to get better pricing.
 

Mister_G

It appears that people are getting LPG at 32-35ppl (including myself!).  This compares favourably with oil at 48ppl.

Also the LPG boilers are cheaper than oil ones and need less maintenance.

The point made earlier about oil being easier to steal is also relevant, especially if you live in a rural area.  ( we've had 10 oil thefts in our village over the past two years).

Garyh1975

@Mister_G - all valid point and thanks for taking the time to respond. My concern is that the LPG market is not regulated, and with recent events, once our LPG fixed deals come to an end, will we see the ppl double or triple in price. As someone else has fed back, it is like guessing the 2:10 winner at newmarket.....

Mister_G

You're right that the market isn't totally regulated, but it's a lot better than it was and the ability of being able to change supplier every two years has certainly made this so.

Having had LPG for some 38 years now, I'm pretty familiar with how it operates.  There's some good advice on here from some of the other posters who have similar experience.

To be fair, the LPG price has been pretty stable over the past 3 years, and only now are we starting to see an increase.  Certainly signing up to a fixed price two year contact is the way to go, as long as you strike out any clauses that would allow the supplier to increase it (exceptional circumstances etc.).

If you can find a local independent, then you may well get a better deal with them rather than with the big boys (Calor, Flogas, Avanti etc).

I think I'd rather bet on LPG than the 2:10 at Newmarket! 

QrizB

All other things being equal (and I accept they aren't), I'd choose LPG because I much prefer cooking with gas than electricity

Rodders53

QrizB said:

All other things being equal (and I accept they aren't), I'd choose LPG because I much prefer cooking with gas than electricity

You've not tried an induction hob then.

My LPG caravan cooker is a pita to clean and can't simmer as well as my induction hob at home. (Not to mention the singed hairs I get when lighting the burner sometimes.

QrizB

Rodders53 said:

QrizB said:

All other things being equal (and I accept they aren't), I'd choose LPG because I much prefer cooking with gas than electricity

You've not tried an induction hob then.

How well do they work with aluminium pans?