LPG Heating Cost in 2026 (UK)
LPG heating costs around 8–9p per kWh to run in 2026, sitting above mains gas but usually below heating oil and well below direct electric. A new LPG combi boiler fitted costs £2,000–£3,500, and most households rent the storage tank from their supplier rather than buying it. LPG suits off-grid homes that want gas-style instant heat and hot water without an oil tank. Here is the full 2026 breakdown of running costs, boiler prices and tank options.
2026 LPG heating cost breakdown
| Item | Typical cost (2026) | Notes |
|---|---|---|
| LPG running cost | ~8–9p per kWh | Above mains gas, usually below oil |
| New LPG combi boiler (supply & fit) | £2,000–£3,500 | System/regular a little less |
| Tank rental (from supplier) | £50–£120 per year | Often free with a fuel contract |
| Bought above-ground tank | £800–£2,000 | Frees you to switch suppliers |
| Underground tank (supply & install) | £2,500–£4,500 | Discreet but higher upfront |
| Annual boiler service | £80–£130 | Keeps warranty valid |
How much does LPG cost to run?
LPG is priced per litre but works out at roughly 8–9p per kWh in 2026 once you account for calorific value. That makes it more expensive than mains gas but typically a little cheaper than heating oil per unit of heat, and far cheaper than old-style direct electric heating. A well-insulated three-bed home off the gas grid might use 12,000–18,000 kWh a year for heating and hot water.
Tank rental vs buying your tank
Most households rent the tank from their LPG supplier, which is cheap or free but ties you to that supplier's prices. Buying your own tank costs £800–£2,000 above ground (more underground) but lets you shop around for the cheapest fill, which can pay back over several years if you use a lot of gas.
LPG vs oil vs electric
Oil often edges LPG on pure fuel price but needs a larger tank and OFTEC servicing; LPG boilers are near-identical to mains-gas boilers and give instant combi hot water. Direct electric is simplest to install but usually the most expensive to run. A heat pump can beat all three on running cost where the home is well insulated.
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