The domestic use of heating oil has become more competitive over the last four years claims OFTEC, according to independent figures from the Sutherland tables.

The figures show that the price gap between oil and mains gas has narrowed from 48% in the first quarter of 2008, to 37% in 2012. It also shows there is now very little difference between the price of heating an average three-bedroom home with oil, electricity or wood pellets.

Approximately two million homes and businesses in the UK and Ireland use oil for heating.

The results follow the announcement by the Department of Energy & Climate Change (DECC) that the number of fuel poor households in the UK fell to 4.75 million in 2010, from 5.5 million in 2009. The DECC report says that improvements in the energy efficiency of the housing stock and installations of energy efficient boilers (32% of households had condensing boilers in 2010 compared with 24% in 2009) enabled households to heat their home with less energy. There was also little change in prices for domestic energy between 2009 and 2010.

OFTEC director general Jeremy Hawksley said: "Oil is still one of the most competitive fuels for off-gas-mains properties in rural areas, and it's reassuring that the move towards condensing boilers has helped contribute to a reduction in fuel poverty."

OFTEC said LPG remains the most expensive fuel for off-gas-main customers, costing £1,929 per annum to provide heating and hot water for an average three-bedroom house. The organisation said in 2008, oil was 19% cheaper than LPG, whereas it's now 27% cheaper, costing just £1,408 to heat an average three bedroom home.

To find out more visit the OFTEC website at www.oftec.org.