What does an oil heater cost to run?
By Sithum Imarsha Last reviewed
The same as any electric heater giving the same heat. A 1.5 kW oil column heater on full costs about $0.48 an hour at 32c/kWh, and about $183 a winter with the settings below.
Your result
Per winter
$183
Oil column heater: 573 kWh of heat at 32c each, plus — gas supply charge for the year (only if you would cancel gas without this heater)
- An hour on full
- $0.48
- Over the cheapest
- $131
- Heat output
- 1.5kW
- Hours a winter
- 546
- Cheapest at this heat
- Reverse-cycle air conditioner,
$52 a winter - Rates used
- 32c/kWh · 5.06c/MJ gas
Fix the highlighted field to update.
| Heater | An hour | A winter | Extra |
|---|---|---|---|
| Fan heater | $0.48 | $183 | $131 |
| Oil column | $0.48 | $183 | $131 |
| Panel or convection | $0.48 | $183 | $131 |
| Radiant or infrared | $0.48 | $183 | $131 |
| Reverse-cycle | $0.14 | $52 | Cheapest |
| Flued gas | $0.34 | $131 | $78 |
Each row gives 1.5 kW of heat for 546 hours at 70% thermostat on-time. An hour is on full. Extra is the winter cost above the cheapest heater, marked "Cheapest".
How we calculated this
- The room size sets the heat needed. Hours, days and thermostat on-time add it up over a winter.
- Each heater type has its own price for a kWh of heat, from its efficiency and its fuel.
- The cost is the heat times that price, so every heater is compared on the same heat.
Full method, tables and sources: Heater running cost comparison
Work out the heat the room needs
1.5 kW
Add up the heat over a winter
573 kWh of heat
Price 1 kWh of heat for each heater
32c electric · 9.14c reverse-cycle · 22.77c gas
Multiply out your heater
573 kWh × 32c = $183
An oil column heater turns each kWh of electricity into 1 kWh of heat, exactly like a fan heater. This version starts with a 15 m² room, about 1.5 kW of heat. The table shows every other heater giving the same heat.
What we found
Not yet checked
- CHOICE measured an average draw of 1.62 kW for oil column heaters and 2.04 kW for fan heaters: about 65c and 82c an hour at 40c/kWh (updated 27 May 2026). The oil heater cost less an hour because it drew less power, so it also gave less heat.
- Comparisons that call oil cheaper often put a smaller oil heater against a bigger fan heater. At the same heat output, the kWh and the cost are the same.
Why compare at the same heat? Read the full guide on the main heater running cost comparison.
Questions
Are oil heaters cheaper to run than fan heaters?
No, not at the same heat. Both turn 1 kWh of electricity into 1 kWh of heat. An oil heater only costs less an hour when it is smaller or its thermostat has it switched off more of the time.
What does a 2400 W oil heater cost per hour?
On full, 2.4 kWh an hour: about $0.77 at 32c/kWh, the Australian average in our table. Its thermostat switches it off once the room is warm, so a typical hour costs less.
Why do oil heaters feel cheaper?
The oil holds heat, so the heater warms up and cools down slowly. The heat feels gentler and lasts after the element switches off. It does not make more heat from each kWh.