Contact

Oil and gas

LPG heating costs and alternatives

Bulk LPG is used for heating in many homes off the gas grid. Its real cost includes the price per litre, VAT and any tank rental, so turn every quote into a cost per kWh of heat before comparing.

Updated 3 October 2026 · energy.org.uk editorial team

Working out the cost

A litre of LPG holds less energy than a litre of heating oil (about 7.1 kWh against about 10.3 kWh), so compare the cost of heat, not the price per litre. Add any yearly tank rental or service charge. The oil and LPG quote checker does this for you.

Domestic LPG carries VAT at the reduced rate of 5%.

Rented tanks and switching supplier

Most bulk LPG tanks are owned by the supplier. Rules for domestic bulk LPG mean:

  • The period you are tied to one supplier can't be longer than two years.
  • After that, your supplier can't charge you a fee to switch. Ending a contract early can carry a fee, which the supplier must tell you.
  • The notice period can't be longer than 42 days.
  • You don't pay to transfer the tank to a new supplier, or for removing it if the new supplier fits a new one.

Check

What to check first

  • Your contract: when the tie-in period ends, the notice period and any fees.
  • The price per litre with VAT, and any tank rental or standing charge.
  • How much you use a year, from past deliveries or invoices.

Do

Practical next steps

  1. Compare your current price with quotes from other suppliers in the quote checker.
  2. If you are outside the tie-in period, ask your supplier for a better price, or switch.
  3. When your boiler is due for replacement, compare a heat pump in the heating comparison. A grant may help; see heat pump grants.
  4. Cut the heat you need first with insulation and draught-proofing; see what to improve first.

Take care

Important limitations

  • LPG prices are set by suppliers and there is no official average for household LPG on our site.
  • The checker assumes an 85% efficient boiler, as in our heat pump tools.
  • Metered LPG estates have their own switching arrangements; check with the supplier.

Related tools and guides

Sources

Official sources checked 3 October 2026.