heatingoilcost.com

The two grades

Kerosene against gas oil

The short answer

28 second kerosene is the UK domestic heating fuel. 35 second gas oil is a heavier rebated fuel, dyed red, for agricultural and commercial plant. They are not interchangeable, the duty treatment is different, and putting the wrong one in a domestic boiler is a service call.

Domestic grade

28 sec

Commercial grade

35 sec

Duty on heating kerosene

Nil

Kerosene reading

90.01pper litre

Two fuels, two names, one common mistake. Here is what actually separates them.

28 second kerosene35 second gas oil
Also calledStandard grade burning oil, premium kerosene, heating oilRed diesel, tractor diesel, rebated fuel
ColourClear to pale strawDyed red with a fiscal marker
Typical useDomestic and light commercial boilers, some cookersAgricultural plant, static engines, some commercial burners
ViscosityLighter, flows and atomises at low temperatureHeavier, more energy per litre, waxes in cold
Duty treatmentNil rate for heating useRebated rate, restricted to qualifying uses
Goes in a domestic kerosene boilerYesNo
The working distinction, grade by grade.

DESNZ Quarterly Energy Prices / QEP 4.1.1 standard grade burning oil / published 27 August 2026 / checked 23 September 2026 / lag 27 daysone to four weeks oldtier A

Typical price for a delivery of up to 1,000 litres, VAT at 5% included. Observed on the Monday nearest the 15th. The official series covers standard grade burning oil, which is the domestic grade in the left hand column.

Why the price gap is not what you would guess

Gas oil carries more energy per litre than kerosene, so on energy content alone it should be the dearer fuel. The reason it is not always dearer at the pump is duty. Heating kerosene is charged at a nil rate. Gas oil carries the rebated rate, which is low but not zero. That difference shifts the ranking and it moves whenever rates change.

We do not publish a live gas oil retail figure here, because the domestic buyer on this site does not have a legitimate use for it. If you are running agricultural plant, the fuel duty guidance is the document to read, and the restrictions on qualifying use have tightened rather than relaxed.

What happens if the wrong grade goes in

  • A kerosene burner fed gas oil will typically smoke, soot the heat exchanger and lock out. It is a service call and a clean, not a catastrophe, but it is not free.
  • The red dye is a fiscal marker. It stays in the system, and it is detectable long after the fuel has burned.
  • Using rebated fuel outside its qualifying use is a duty matter, not a quality matter. That is the reason to care rather than the boiler performance.
  • If a delivery went wrong, ring the supplier before you fire the boiler. Draining a tank is cheaper than cleaning a heat exchanger.

The American reader

None of this maps onto the United States. American home heating oil is No. 2 distillate, which is closer to the UK gas oil end of the range than to kerosene. A price quoted in dollars per gallon and a price quoted in pence per litre are not describing the same fuel, which is why this site keeps the two desks apart.

Primary sources for this page