By Emily Rivers
Last updated 4th May 2023

Heating Oil Tank Installation Cost Guide for 2023

If you've got an oil boiler, you’ll need an oil tank to store your fuel in. An oil storage tank will last at least 10 years, but they can leak when they get old, so it’s a good idea to replace yours when you notice signs of wear and tear. We’ll go through the average heating oil tank installation cost as well as removal costs in our guide.

How much does it cost to install an oil tank?

How much it costs to install an oil tank will depend on a few things, including whether it’s a new installation or you’re replacing a tank, whether you want an underground tank and where you are in the country.

On average, heating oil tank installation costs £2,100-£3,000, but here’s a breakdown:

Item

Average cost

1,000-litre single-skin oil tank

£1,100

1,000-litre bunded oil tank

£1,400

1,200-litre bunded oil tank

£1,500

2,000-litre bunded oil tank

£1,800

Underground oil tank plus installation

£10,000

Oil tank installation cost

£1,000

New 10m oil line and trench

£500

Removal of old oil from tank

£300

New oil boiler

£3,550

What does ‘bunded’ mean?

If you see the word ‘bunded’ to describe an oil tank, it means that it has a tank within a tank. This helps to prevent leakages as the oil is stored in the inner tank, while the outer tank is there to catch any spillages should the inner tank spring a leak.

Bunded oil tanks aren’t a requirement for domestic properties, but it’s worth thinking about getting one. As the homeowner, you are responsible for preventing your oil from polluting the environment, and if there is an oil spill you’ll have to pay possibly thousands of pounds to clean it up.

Cost to install a storage oil tank

What affects the cost of oil tank installation?

Factors affecting the cost of oil tank installation include:

  •   The type of oil tank you choose: Single-skin oil tanks will be cheaper than bunded ones, but they have more chance of leaking
  •   Tank material: Plastic tanks are cheapest as they’re lighter than metal ones
  •   Tank location: You’ll pay significantly more if you want your oil tank installed underground
  •   Whether you’re replacing an old tank: A straight replacement oil tank is likely to be cheaper than a new installation
  •   Your location: Where you live will affect how much a contractor charges to install an oil tank, with very remote areas being the most expensive

Types of heating oil tank

There are a few different types of heating oil tank to consider. The best one for you will depend on your preference and how much space you have in your home or in the garden.

Single-skin tanks

Single-skin tanks are simple oil tanks that have one layer. They’re normally the cheapest to buy.

Bunded tanks

Bunded tanks have two layers and are useful for protecting against spillages which can be extremely costly to clean up. If the first layer springs a leak, the second one will prevent oil from leaking out.

Above-ground indoor tanks

Above-ground indoor tanks are usually installed in a room like the garage or basement, so they can be easily accessed but don’t spoil the look of your home.

Above-ground outdoor oil tanks

Above-ground outdoor oil tanks are large tanks that can be single-skin or bunded and will often be installed close to the side or rear of your home.

Underground oil tanks

Underground oil tanks are an ideal solution if you don’t want a big oil tank spoiling the look of your garden. Due to the excavation work involved in installing an underground tank, these tanks are usually the most expensive to fit.

Oil tank removal costs

If you’re changing your heating system to the more environmentally-friendly LPG or a renewable source, you’ll want to remove your oil tank altogether. The cost to remove an oil tank is around £750 on average, but there are a few factors that will affect the cost:

  •   Tank size: Larger tanks will cost more to remove
  •   Location of your tank: If it’s underground or in a basement, there will be more work involved, so you’ll pay more
  •   Whether your tank is full: If it’s full of oil, you’ll need to pay to have it drained and safely disposed of
  •   What the tank is made from: Plastic tanks are easier to remove than metal ones, so will be cheaper to remove
  •   Where you live: Removal costs will differ depending on where you are in the country – generally costs are higher in the south east than other areas

Can I install my own heating oil tank?

We wouldn't recommend installing your own heating oil tank. You'll need to fit supply pipes and ensure that all the connections are fitted properly to avoid any leaks. If you cause a leak and oil spills into the environment, you have a duty to clear it up – and it could cost thousands of pounds.

It’s much better to leave installation to OFTEC-registered engineers who have had all the relevant training and can self-certify that their work meets building regulations.

How much does it cost to move an oil tank in the UK?

If you want to move your oil tank to a different position in your garden, expect it to cost between £600-£1,500. The final cost will depend on:

  •   Whether your tank is full: If it is, it will need emptying and putting in a holding tank before being moved
  •   How far it’s being moved: You may need a new oil line and trenches if it’s significantly further away from your property
  •   What your tank is made of: Since plastic tanks are lighter, they usually cost less to move

New oil tank installation is definitely worth it if your tank is getting old to prevent costly leaks. If you need a new oil tank installed or want your old one removed, post your job on HaMuch. We’ll put you in touch with OFTEC-registered engineers who are available to do the work.


Estimates for common heating engineer jobs;

Rates for other trades

Heating oil tank installation cost in the UK
Heating oil tank installation cost in the UK (excluding VAT or callout charges)
Location in UKHeating oil tank installation cost
Heating oil tank installation near London£1475
Heating oil tank installation near Birmingham£1185
Heating oil tank installation near Glasgow£1400
Heating oil tank installation near Sheffield£1220
Heating oil tank installation near Liverpool£1220
Heating oil tank installation near Edinburgh£1360
Heating oil tank installation near Manchester£1215
Heating oil tank installation near Bristol£1305
Heating oil tank installation near Cardiff£1185
Heating oil tank installation near Coventry£1180
Heating oil tank installation near Leicester£1165
Heating oil tank installation near Sunderland£1300
Heating oil tank installation near Nottingham£1165
Heating oil tank installation near Newcastle Upon Tyne£1310
Heating oil tank installation near Plymouth£1235
Heating oil tank installation near Wolverhampton£1185
Heating oil tank installation near Swansea£1165
Heating oil tank installation near Aberdeen£1455
Heating oil tank installation near Southampton£1375
Heating oil tank installation near Milton Keynes£1415
Heating oil tank installation near Northampton£1400
Heating oil tank installation near Portsmouth£1325
Heating oil tank installation near Luton£1445
Heating oil tank installation near York£1165
Heating oil tank installation near Bath£1335
Heating oil tank installation near Bournemouth£1355
Heating oil tank installation near Brighton£1365
Heating oil tank installation near Blackpool£1245
Heating oil tank installation near Dundee£1425
Heating oil tank installation near Basingstoke & Deane£1440
Heating oil tank installation near Oxford£1450
Heating oil tank installation near Isle of Wight£1320
Heating oil tank installation near Cambridge£1380
Heating oil tank installation near Salisbury£1360
Heating oil tank installation near Exeter£1260
Heating oil tank installation near Gloucester£1515