Are Oil Heaters Expensive to Run in Australia? Costs Compared
On a cold morning in Melbourne, Canberra or Adelaide, an oil heater offers a quiet way to warm a bedroom or home office. The cost can still become noticeable when it runs for several hours each day. So, are oil heaters expensive to run? Wattage, your electricity rate, daily runtime and room insulation all shape the final bill. This article calculates hourly, daily and winter costs, compares oil heaters with other heating options and helps you plan your heating budget.
Are Oil Heaters Cheap to Run in Australia?
Oil heaters can keep individual rooms warm at a manageable cost, but using several units across an entire home can add noticeably to your power bill.
When They Are Cost-Effective
Heating a small bedroom or home office for a few hours can be relatively affordable. The heated oil continues releasing warmth for a short period after the element switches off, which helps maintain a steadier temperature between thermostat cycles. Oil heaters can work well for:
Renters and strata residents: Portable heating without permanent installation.
Home office workers: Targeted warmth in one occupied room.
Bedrooms: Quiet operation and steady heat with suitable thermostat or timer settings.
When Running Costs Rise
Oil heater electricity costs increase when:
The heater runs for most of the day: Longer runtime has a greater effect on the final bill than occasional use.
The room loses heat quickly: Draughts and poor insulation keep the heating element active for longer.
Several heaters run at once: Heating multiple rooms separately can become expensive.
How Much Does an Oil Heater Cost to Run in Australia?
Your oil heater running cost depends on its wattage, your electricity usage rate and how long the heating element stays active. Once you have these figures, you can estimate the oil heater electricity cost per hour, day, month or winter.
Oil Heater Running Cost Formula
Wattage and runtime determine most of an oil heater’s energy consumption. Use this formula to estimate the hourly cost:
Hourly cost = Heater wattage ÷ 1,000 × Electricity rate
For a 1,500 W oil heater and an illustrative electricity rate of $0.31 per kWh:
1,500 W ÷ 1,000 = 1.5 kW
1.5 kW × $0.31 per kWh = $0.465
The heater therefore costs about $0.47 per full-power hour.
For longer periods, use:
Total cost = Heater wattage ÷ 1,000 × Hours used × Number of days × Electricity rate
The same method can help you calculate kWh usage for other household appliances. Replace the electricity rate with the usage charge shown on your latest bill for a more accurate estimate.
Oil Heater Cost per Hour by Wattage and Electricity Rate
The table below compares the estimated oil heater cost per hour across several common wattages and electricity rates.
Oil Heater Power | Electricity Used per Full-Power Hour | $0.25/kWh | $0.31/kWh | $0.40/kWh | $0.45/kWh |
500 W | 0.5 kWh | $0.13 | $0.16 | $0.20 | $0.23 |
1,000 W | 1.0 kWh | $0.25 | $0.31 | $0.40 | $0.45 |
1,500 W | 1.5 kWh | $0.38 | $0.47 | $0.60 | $0.68 |
2,000 W | 2.0 kWh | $0.50 | $0.62 | $0.80 | $0.90 |
2,400 W | 2.4 kWh | $0.60 | $0.74 | $0.96 | $1.08 |
These estimates assume that the heating element runs continuously at full power. In practice, the thermostat may switch the element off once the room reaches the selected temperature. A cold, draughty or poorly insulated room can keep it active for longer.
A lower-wattage heater does not always deliver a lower final cost. An undersized unit may run for much longer without warming the room properly, so match the heater size to the space rather than choosing wattage alone.
Households on time-of-use tariffs may pay different rates during peak, shoulder and off-peak electricity times. Check the tariff schedule on your bill before assuming that overnight heating automatically uses the cheapest rate.
Daily, Monthly and Winter Oil Heater Running Costs
The hourly figure may look manageable, but regular evening use can add noticeably to your winter bill. The examples below use an illustrative rate of $0.31 per kWh and assume continuous full-power operation.
Usage Scenario | 1,500 W Oil Heater | 2,400W Oil Heater |
4 hours per day | $1.86 | $2.98 |
6 hours per day | $2.79 | $4.46 |
8 hours per day | $3.72 | $5.95 |
30 days at 6 hours per day | $83.70 | $133.92 |
500 hours over winter | $232.50 | $372.00 |
These full-power estimates may overstate actual costs when the thermostat cycles regularly. However, a high-wattage heater running for most of the day in a large or draughty room can still add hundreds of dollars to a winter bill.
How Long Can You Run an Oil Heater on Your Budget?
Once you know the oil heater running cost per hour, you can work backwards from a daily or monthly budget.
At $0.31 per kWh, a 1,500 W oil heater costs about $0.47 per full-power hour.
$1 daily budget: Around 2 hours
$2 daily budget: Around 4 hours
$3 daily budget: Around 6 hours
$60 monthly budget: Around 4 hours per day over 30 days
Use this formula for your own estimate:
Daily runtime = Daily heating budget ÷ Hourly running cost
These figures use continuous full-power operation. Thermostat cycling may allow the heater to run longer within the same budget, though the result depends on how quickly the room loses heat.
Oil Heaters vs Other Heating Options: Running Cost Comparison
To understand how oil heaters perform financially, compare them directly against other common room heaters. Different heating technologies deliver and distribute warmth in different ways, which affects how long they need to run.
The table below compares typical space heating costs using an illustrative electricity rate of $0.31 per kWh.
Heating Option | Power or Comparison Basis | Estimated Cost per Full-Power Hour at $0.31/kWh | Best Application |
Oil-filled column heater | 1,500 W to 2,400 W | $0.47 to $0.74 | Bedrooms and home offices used for several hours |
Panel or convection heater | 1,000 W to 2,000 W | $0.31 to $0.62 | Small enclosed rooms and shorter heating periods |
Ceramic fan heater | 1,500 W to 2,000 W | $0.47 to $0.62 | Brief personal heating at a desk or in a small room |
Reverse-cycle air conditioner | Varies by capacity and efficiency | Around $0.10 to $0.21 to deliver about 2 kW of heat | Regular heating in medium, large or open-plan spaces |
*Portable heater figures assume continuous full-power operation. Actual costs depend on thermostat cycling, room insulation and total runtime. The reverse-cycle estimate uses an efficiency range of around 300% to 600%.
Key Running Cost Insights
Oil, panel and ceramic heaters: Models with the same wattage cost roughly the same at full power. The main difference comes from how quickly they warm the space and how long you need to run them.
Oil heaters: Their quiet operation and steady heat suit enclosed rooms used for several hours, but thermal retention does not guarantee lower overall electricity use.
Reverse-cycle systems: These usually cost less for regular heating because they can provide around three to six units of heat for each unit of electricity consumed.
Oil heaters remain practical for targeted room heating. For larger spaces or daily winter use, a reverse-cycle air conditioner usually provides lower running costs.
Can You Run an Oil Heater with a Portable Power Station?
Yes, provided the portable power station has enough continuous AC output and battery capacity. Oil heaters draw substantial power while the heating element is active, so higher-wattage models require more output and reduce battery runtime.
Output and Battery Runtime Requirements
Add the wattage of the oil heater and every appliance you plan to run at the same time. Keep the combined load below the power station’s continuous AC output and allow around 20% to 30% of headroom.
For example, a 1,500 W oil heater and a 200 W television create a combined load of 1,700 W. A power station with at least 2,200 W of continuous AC output would provide a practical margin.
Use this formula to estimate runtime:
Estimated runtime = Usable battery capacity × inverter efficiency ÷ total power draw
Portable Power Options for Different Backup Needs
Once you have calculated the total load and required runtime, you can match those figures to a suitable backup power solution. Powering one oil heater and a few essential devices for several hours requires far less capacity than keeping heating, refrigeration, lighting and internet access available during an extended outage.
The following options cover both short-term room heating and longer household backup.
Short Outages and Single-Room Heating
The EcoFlow DELTA 3 Ultra Plus Portable Power Station suits short outages where you need to heat one occupied room and keep a few essentials running. It can support a lower-wattage oil heater alongside devices such as a router, lights or phone chargers, provided the combined load stays within its output limit. Extra battery capacity can also extend runtime when required.
Extended Outages and Whole-Home Backup
The EcoFlow DELTA Pro Ultra Whole-home Backup Battery powers high-consumption space heaters alongside major home appliances like refrigerators and core electronics. High solar input supports faster daytime recharging, while the EcoFlow Transfer Switch connects selected home circuits to the system and distributes backup power through the existing electrical setup, keeping heating and essential appliances available across the home.
Conclusion
Whether oil heaters are expensive to run in Australia depends on the heater’s wattage, your electricity tariff and how long you heat the room. A single unit can offer manageable, quiet heating in a small enclosed space, but running several heaters or using one for most of the day can raise winter costs quickly. Compare the cost per hour with your expected runtime before choosing one. For regular heating in larger areas, an efficient reverse-cycle air conditioner will usually use less electricity, while a suitable backup battery can keep heating and essential appliances available during an outage.
FAQs
Is it cheaper to leave an oil heater on all night?
Usually not. Leaving an oil heater on all night costs more than heating the room for a shorter period or using a timer. At $0.31 per kWh, a 1,500 W model could cost up to about $3.72 over eight hours at continuous full power, although thermostat cycling may reduce the actual amount. Set a suitable temperature and schedule the heater around the hours you need it.
Do oil heaters keep a room warm?
Yes. Oil heaters release steady heat and continue radiating warmth for a short time after the heating element switches off. They work best in small or medium enclosed rooms, such as bedrooms and home offices. Large, open or draughty spaces may take longer to warm and can require the heater to run more often.
What is the most inexpensive way to heat your house?
An efficient reverse-cycle air conditioner usually offers the lowest running cost for regular home heating because it transfers heat rather than relying solely on electrical resistance. You can reduce costs further by heating only occupied rooms, closing internal doors, sealing draughts and keeping the thermostat between 18°C and 20°C. Portable oil, panel and fan heaters may still cost less overall when you only need occasional heat in one small room and want to avoid installation costs.