Can I spread the cost of heating oil?

Why oil bills arrive in lumps

Gas and electricity are often paid monthly, but heating oil is paid for when it is ordered, and the CMA says households typically order 2 to 4 times a year. A 1,000 litre fill costs about £1,198 today including VAT, so each order is a big bill. Payment plans do not usually lower the price, but they make it easier to budget. The aim is to have the money ready when the tank gets low, rather than finding it all at once.

Supplier payment plans

The CMA's 2026 heating oil market study found that most suppliers in Great Britain that responded offer a payment plan, of two main kinds:

• Monthly payments in advance: a fixed amount each month, much like a Direct Debit for gas or electricity, that builds up credit over the warmer months for winter deliveries.
• Paying for one order over time: spreading the cost of a single delivery.

Terms vary. Some suppliers ask new customers to pay upfront, give more payment options to customers with an approved account, or allow long-standing customers more time to pay. The CMA found people may not be well aware these plans exist, and in October 2026 the government agreed that a future code of conduct should require suppliers to signpost them clearly. A plan ties you to one supplier, so check its price against other quotes before each delivery.

Northern Ireland: stamps and PayPoint

In Northern Ireland just under half of the suppliers the CMA heard from offered payment plans, but most accepted some form of oil savings stamp or payment through PayPoint. Both let you put money aside in small amounts towards your next order.

Spreading the cost yourself

• Save monthly: Citizens Advice suggests putting money aside each month in a savings account to spread the cost over the year. The money is then ready when you order, and you can buy from whoever is cheapest.
• Order smaller amounts: 500 litres costs about £606 today rather than £1,198 for 1,000 litres, but works out about 1.4p a litre dearer.
• Buy ahead: Citizens Advice says oil is usually cheaper in summer and early autumn, and a delivery in a few weeks is usually cheaper than an urgent one.
• Plan the year: knowing how long a fill lasts tells you how many orders to budget for, and so how much to put aside each month.
• Share the delivery: a heating oil buying group can lower the price per litre.

If you cannot afford a delivery

Act before the tank is empty, and keep at least a quarter of a tank while you wait, as Citizens Advice advises. Government guidance lets councils in England make Crisis Payments for heating oil from the Crisis and Resilience Fund, and Scotland, Wales and Northern Ireland have their own schemes; see help with heating oil costs.

Orders on Fueltool start at 500 litres, and Fueltool never takes card details: the supplier you choose phones you to take payment. When you are ready, compare prices for your postcode.