According to the Sutherland Tables, a recognised source of data on comparative UK domestic heating prices, the current annual cost of using oil to heat a three bedroom home in Great Britain is now 10.1% lower than the average cost reported over the last three years.

The same average figures for homes using electricity and LPG – the other main heating fuels used by off gas grid homes – show an increase in heating costs of 23.9% and 2.2% respectively with LPG, used by some 170,000 off mains gas properties, remaining substantially more expensive than oil. The cost of heating a three bedroom home with a condensing boiler on LPG is £1,924 per annum – £734 more expensive than oil at £1,190 per annum.

According to a new report from DECC published last month, the downward trend in oil prices is set to continue over the next two years with wholesale prices forecast to fall 11.9% by 2016. In contrast, gas prices are predicted to rise by 14.5% over the same period.

Jeremy Hawksley, director general of OFTEC, said: “This is further positive news for oil households which have continued to benefit from relatively consistent heating costs over the past three years.”