Average Oil Tank Installation Cost in 2023 | Checkatrade
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Last updated on September 9th, 2022

Oil tank installation cost guide

Although it’s not the most common source of energy for homes in the UK, many British homeowners use fuel oil for their heating systems. In this guide, we look at the average oil tank installation cost – for both a new tank or the replacement of an existing one.
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As a clean-burning fuel, oil can produce a lot of energy, making it an effective option for heating systems. To run a heating system with fuel oil, you’ll need an oil tank installed to store your oil in. It’s not like gas, where there’s a constant supply – you need to keep an independent storage of fuel oil for your property.

The costs referred to in this article have been included as a guide for average prices of oil tank installation in the UK. For accurate costs in your area, we recommend speaking to your local oil tank specialists.

How much does a heating oil tank installation cost?

The price you pay for installing an oil tank can vary depending on whether the tank is going to be above ground or installed into an underground or basement location. The average cost for a heating oil tank installation is about £1,000. This covers labour and materials to install a new tank assuming minor modifications to an existing outdoor base. It excludes supply of a new tank.

If the location where you want the tank to be installed is easily accessible, there won’t be additional costs. However, if you need to make a special access opening to install the oil tank, then you can expect to pay an additional cost of £1,000 – £2,000.

For an underground tank, the average cost will be around £10,000. This will include the cover design, supply of a 1,400 litre tank, excavation and installation.

ItemRange - LowRange - HighAverage cost
Average oil tank installation--£1,000
Replacing an existing oil tank£1,500£4,000£2,500
Making an access opening for new oil tank£1,000£2,000£1,500
Standard 1,100 litre oil tank (unit only)£800£1,200£1,000
Double-walled 1,100 litre oil tank (unit only)£1,200£2,000£1,500
Install a new oil boiler£3,000£3,675£3,350
Trench a new oil line--£500
Drain oil tank--£350
Supply & install new underground oil tank£10,000

Our costs are ballpark averages – get a local tradesperson to quote now

Oil tank replacement cost

If you already have a heating oil tank in your home, then you’ll need to consider the cost of replacing it. The price of replacing an existing oil tank can vary considerably, ranging from £1,500 – £4,000 – depending on the type, size and location of the tank. An average price of £2,500 would cover the supply of a new tank, removal of an existing tank, minor modifications to an existing outdoor base and installation of a new tank.

Although oil tanks are hard-wearing, you’ll need to replace them roughly every 10 years. The type of tank you choose will affect both the cost and how long they last before needing to be replaced.

The average cost of a standard oil tank is around £1,000, but they can be prone to corroding as a result of water settling at the bottom of the tank – which can reduce their lifespan. The more robust double-walled oil tanks are much better in terms of corrosion levels, but they cost most at around £1,500 per tank.

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Factors affecting the cost of oil tank installation

The main factors that impact the total price you pay for your oil tank installation are the size of the tank and the location of the installation. The larger the oil tank, the higher the price to install it. And the more complicated the location, the more it will cost to carry out the installation.

Other factors affecting the cost include:

  • Type of oil tank
  • Quality of tank
  • Complexity of installation
  • Location of the tank (above or below ground)
  • Hourly rate of the oil tank installer
  • Where you live.

heating oil tank installation cost

Oil tank and boiler installation costs

When you have an oil tank supply for your home’s heating system, you want to make sure your boiler is compatible. If not, you’ll need to install a new oil system boiler. The average cost of installing an oil boiler to go with your oil tank ranges from £3,000£3,675.

To find out more about boiler installation costs, check out our new boiler cost guide.

Additional oil tank installation costs

As well as the cost of the tank installation itself, there are some other costs that you might need to factor in. If you need to trench a new oil line from the tank to your heating system, it will cost you around £500.

If you’re replacing an old oil tank, you’ll need to drain your old one first. The average cost of draining an oil tank is about £350.
oil tank replacement cost

Types of oil tank

There are a number of options to choose from when it comes to the type of oil tank you install in your home, and your choice will affect the cost.

Above-ground indoor oil tanks. These are large oil tanks and are typically stored in a building or space attached to the main property, such as a garage or basement.

Above-ground outdoor oil tanks.  These are generally located close to the property either to the side or rear.

Underground oil tanks. Perhaps the most costly to install, these oil tanks are stored underground where they’re out of sight and generally go unseen. The supply pipes for the tank are usually installed underground too, although the fill pipe has to be above ground to allow for easy filling of the tank.

Do I need planning permission to install an oil tank?

That depends. There are rules and regulations regarding oil tanks, their installation and maintenance as set out by OFTEC – the trade organisation responsible for the heating industries in the UK.

Depending on the height of the tank and the location compared to the property boundary, you may need planning permission. Also, if you live in a listed property you’ll need planning permission to install a new oil tank. We recommend speaking to your local council before installing an oil tank for your property.

Useful oil tank installation checklist

  • Once you’ve decided you want to install an oil tank for your home, speak to your local planning office to confirm if you need planning permission.
  • Speak to your local oil tank specialists for their professional advice and to find out options for tanks and installations.
  • Shop around for fair and competitive oil tank installation costs.
  • Always hire tradespeople with relevant experience and appropriate qualifications and/or accreditations, such as being an official OFTEC engineer.
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