If you’ve ever heard someone mention “fuel oil,” you might wonder: what exactly is it? What is it used for, especially here in the UK? The truth is, fuel oil plays a lot of roles—some obvious, others less so—and its uses are shaped by laws, costs, and energy needs. Let’s explore.
What Exactly Is “Fuel Oil”
Before diving into its uses, let’s get clear on what fuel oil means. Fuel oil refers to heavier liquid petroleum products derived from crude oil (fractional distillation, etc.) that are used for burning to generate heat, power machinery, or for other industrial purposes. Depending on its grade, it might be called furnace oil, kerosene, gas oil, industrial heating oil, or boiler oil. These oils tend to have longer hydrocarbon chains, which makes them slower to evaporate but good at delivering steady heat.
Common Uses of Fuel Oil in the UK
Fuel oil is versatile. Across homes, farms, industries, and businesses, it’s used for several key applications:
Heating Buildings and Water
In many rural homes, cottages, and commercial buildings such as schools or hospitals that aren’t connected to the gas network, fuel oil (often kerosene or home-heating oils) is burned in boilers to provide central heating and hot water. The fuel is stored in tanks on-site, and the system is designed to deliver steady, reliable heat.
Industrial Heating & Processing
A large portion of fuel oil use in the UK is in industrial settings: factories, food processing plants, distilleries, and places needing drying, baking, or heat processing. For example, industrial heating oil (IHO) is used to feed boilers, heaters, dryers, and furnaces. It’s a go-to fuel when large, steady heat output is required.
Commercial Buildings & Institutions
Besides homes and industry, commercial buildings (offices, hotels, hospitals, schools) often use fuel oil for backup heating or primary heating where gas is unavailable or impractical. In many cases, an industrial-grade heating oil is more cost-effective or better suited for large boilers or heating systems in such settings.
Backup Power & Generators
Fuel oil (or gas oil, which is a type of fuel oil) is also used in diesel generators to provide emergency power (for hospitals, data centres, remote sites) or for continuous operations where mains electricity is unreliable or unavailable.
Specific Uses: Kilns, Incineration, Drying, Manufacturing
There are more specialised uses too. Fuel oil is burned in kilns (bricks, ceramics, glass) and incinerators for waste treatment. Industries that need to dry grains, process metals, or run large-scale manufacturing often use fuel oils for these processes.
What’s the Difference Between the Types of Fuel Oil
Not all fuel oils are the same. Depending on the exact blend, sulphur content, and whether it’s for heating or engine use, there are regulations, costs, and performance differences to consider.
- Industrial Heating Oil (IHO) is tailored for heating applications—not to power vehicle engines. It often has different tax treatment and may avoid some of the fuel levies applied to road fuels.
- Gas Oil is a type of fuel oil used in off-road engines (such as agricultural vehicles), heating, or industrial machinery. However, recent UK legislation (from April 2022) has restricted entitlement to rebated gas oil in some sectors.
- Home Heating Oil / Kerosene is usually cleaner (lower sulphur) and used in smaller boilers, often for domestic heating. It tends to be more costly per litre but necessary where safety, cleanliness, or regulations demand it.
Legal, Cost & Environmental Considerations
Using fuel oil isn’t just a technical decision—it’s also about rules, cost, and environmental impact.
- Because fuel oils are taxed differently, you often get “rebated” rates (lower tax) if the oil is used for non-road, heating, or industrial purposes. But the rules are strict; misusing fuel oil for unintended applications (e.g. in road-engines) can result in penalties.
- Costs vary depending on the type of fuel oil, the sulphur content, the volume, and whether it’s being delivered in bulk. Businesses ordering large volumes usually get better rate per litre.
- Environmental concerns are increasingly important. Fuel oils emit more CO₂ and sulphur than many cleaner alternatives. Because of the UK’s decarbonisation goals (net zero by 2050), some sectors are looking to switch to lower-carbon fuels, renewable heating, or more efficient systems.
Summary: When & Why Fuel Oil Is Used
Fuel oil is used wherever reliable heat or power is needed, especially where gas supply isn’t possible or where industrial processes demand a steady burning fuel. It’s used in homes (heating & hot water), institutions, factories, for backup power, drying, incineration, manufacturing… and more. The particular type of fuel oil, cost, and regulatory framework will depend on the application.
How 123 Oil Can Help
If you’re looking for fuel oil for your home, farm, business, or industrial facility, 123 Oil can help. We supply high-quality fuel oil, with reliable delivery across the UK, in volumes to suit you—whether it’s for domestic heating, industrial boilers, backup generators or other uses. We know the regulations and standards, and can give you advice on choosing the right fuel oil type for your needs so that you stay compliant, save money, and keep everything running smoothly.
