Leaking oil tank

If oil is coming out now: stop the flow if you safely can, keep it out of drains and water, and if it could reach a stream, ditch, pond or well call the Environment Agency incident hotline on 0800 80 70 60. Then call your insurer.

Once it is contained, a leaking tank almost always needs replacing. This page covers the first hour, insurance, and getting a new tank in.

Replacement after a leakfrom £1,900a guide, not a quote

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Signs of a leak

  • A smell of heating oil near the tank, the pipe run or the boiler.
  • Oil use is suddenly higher than usual for the weather.
  • Dead grass, staining or a sheen on puddles near the tank.
  • Oil in the bund of a bunded tank, or a bund alarm going off.
  • An oily taste or smell in a private water supply.

Typical costs after a leak

Replacement bunded tank, fitted
1,000 to 1,250 litres, plastic		£1,900 to £2,900
Emergency drain-down
Pumping the remaining oil		about £350
Removal and disposal of the old tank
Contaminated tanks may cost more		£250 to £600
Soil and water clean-up
OFTEC figure, can be more		over £20,000
How we got these figures

The figures above are our own bands, drawn from three UK cost guides dated 2024 to 2026 and checked in November 2026. They describe the country as a whole rather than your county, and the guides leave VAT unclear, so when quotes arrive check whether each one adds it. Budget with them; the installer's written price is the one that counts.

Work out your price in the cost estimator

The first hour, then the replacement

Contain it

Find where the oil is coming from and stop it if you can do so safely: close the outlet valve, plug a split with a putty-type sealant or tape as a stopgap, or transfer oil to containers. Use sand, soil, cat litter or absorbent pads to stop it spreading. Block or cover nearby drains. GOV.UK and council guidance agree on one thing above all: do not wash oil away with a hose or use detergent, which just spreads it.

Call the right people

If oil could reach a watercourse, a drain or groundwater, report it to the Environment Agency's 24-hour hotline on 0800 80 70 60. Your oil supplier can often collect what is left in the tank. Tell your insurer straight away; delays can affect a claim. If your drinking water tastes or smells of oil, stop drinking it and contact your water company or, for a private supply, your council.

What insurance usually covers

OFTEC's advice is that home insurance usually pays for the lost oil and for damage to the building, but often limits or excludes environmental clean-up of your own land and water, and may cover only sudden incidents, not slow leaks or wear and tear. OFTEC puts a domestic spill clean-up at more than £20,000. The tank itself, if it failed through age, is almost never covered.

Replacing the tank

Once the leak is stopped and any clean-up is underway, the replacement is the same as any other, with two differences. The new base may have to wait until contaminated soil is dug out, and the installer will want to know if the old tank is contaminated before cutting it up. Choose a bunded tank: if there has been one leak, the site has already shown where oil goes.

See oil tank replacement for prices by size, and our oil tank regulations page for where the new tank can stand.

Leak contained and need a new tank? Get a quote for a replacement.

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After a leak, in order

The order matters: containment and reporting come before the new tank.

  1. Contain and report

    Stop the flow, protect drains, call the hotline if water is at risk, call your insurer.

  2. Empty the tank

    Remaining oil pumped out by your supplier or an installer.

  3. Assess the ground

    Specialist or insurer decides what soil must be dug out before a new base goes down.

  4. Replace

    Old tank removed, new bunded tank fitted, certified and labelled.

Leaking oil tank questions

What should I do if my oil tank is leaking?

Stop the leak if safe, contain the oil with sand or absorbent, keep it out of drains, and call the Environment Agency on 0800 80 70 60 if water could be affected. Then call your insurer and your oil supplier.

Does home insurance cover a leaking oil tank?

Usually the lost oil and damage to the house, sometimes not the clean-up of your land or neighbouring land, and rarely the worn-out tank itself. Check your policy wording on pollution.

Can a leaking oil tank be repaired?

A temporary seal can stop a leak for long enough to empty the tank. A permanent repair to a split plastic tank or a corroded steel one is not reliable; replacement is the norm.

Who is responsible for an oil leak?

The tank owner. The Environment Agency says clean-up costs fall on the owner, and that household insurance does not always cover them.

How much oil does it take to cause pollution?

Very little. The Environment Agency says two litres can seriously pollute enough fresh water to fill an Olympic swimming pool.

How quickly can a leaking tank be replaced?

Often within a week once the tank is empty and the ground has been assessed. Tell the installer it has leaked when you ask for a quote.

Related tank guides

Get a quote to replace a leaking tank

Three steps: the postcode, the tank, and how to reach you. It takes a couple of minutes at most.

We are a free introduction service, not an installer. We find an OFTEC-registered tank installer who covers your postcode and tell you their name; that firm only hears from us once you give the go-ahead.

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