Do I Need a Bunded Oil Tank? UK Regulations, Requirements & Best Practice Explained

If you rely on heating oil, understanding whether you need a bunded oil tank is essential for legal compliance, environmental protection, and peace of mind. UK oil storage regulations can be complex, and the requirements depend on factors such as tank location, capacity, and property type.

In this guide, we explain when bunded oil tanks are legally required, when they’re strongly recommended, and why they’re often the safest long-term option for homeowners and businesses alike.

What Is a Bunded Oil Tank?

A bunded oil tank is a double-skinned tank consisting of an inner tank that stores oil and an outer tank (the bund) that provides secondary containment. If the inner tank leaks, the outer layer prevents oil from escaping into the environment.

Because of their added protection, bunded tanks are widely regarded as the industry standard for safe oil storage and are increasingly required under UK regulations.

You can browse a full selection of compliant options in the Oil Tank Supermarket bunded oil tanks range.

When Is a Bunded Oil Tank Legally Required in the UK?

Under UK environmental and building regulations, a bunded oil tank is mandatory in several scenarios.

1. Proximity to Water Sources

If your oil tank is:

• Within 10 metres of a watercourse or drain

• Within 50 metres of a well, borehole, or spring

A bunded oil tank is required to prevent pollution from leaks or spills.

2. Oil Tank Capacity Over 2,500 Litres

Any oil tank with a capacity exceeding 2,500 litres must be bunded, regardless of location, to meet environmental protection standards.

3. Commercial & Non-Domestic Use

Businesses, rental properties, and commercial premises using heating oil are required to install bunded tanks to reduce environmental risk and liability.

Certas Energy provides a clear overview of whether bunded oil tanks are compulsory for homes here:
https://certasenergy.co.uk/news/certas-energy-news/what-is-a-bunded-oil-tank-is-it-compulsory-for-your-home/

When Are Bunded Oil Tanks Recommended (Even If Not Mandatory)?

Even where regulations don’t strictly require bunding, installing a bunded oil tank is often considered best practice.

Environmental Protection

Leaks from single-skin tanks can contaminate soil and groundwater, leading to expensive clean-up costs. Bunded tanks significantly reduce this risk.

Insurance & Property Protection

Many insurers:

• Prefer bunded oil tanks

• Offer better terms for properties with bunded systems

• May refuse cover after a spill from a single-skin tank

Long-Term Cost Savings

Although bunded tanks have a higher upfront cost, they can prevent:

• Environmental fines

• Remediation costs

• Insurance disputes

On the Tuffa website it’s explained why bunded oil tanks are often the safest choice even when not compulsory.

Practical Examples Where Bunded Oil Tanks Are Commonly Used

Rural Homes

Properties in rural or off-grid locations are often close to open land or watercourses, making bunded tanks a safer and often compliant choice.

Schools & Public Buildings

Safety, liability, and environmental responsibility make bunded tanks the preferred option for educational and public sector buildings.

Farms & Agricultural Sites

Farms frequently store large volumes of oil, meaning bunded tanks are usually required to meet both capacity and environmental regulations.

Bunded vs Single Skin Oil Tanks: Which Is Right for You?

To compare all available options, view the full Oil Tank Supermarket oil tank range!

Final Thoughts: Is a Bunded Oil Tank Worth It?

In many cases, a bunded oil tank isn’t just recommended — it’s required. Even where regulations don’t strictly apply, bunded tanks offer superior protection, better insurance acceptance, and long-term peace of mind.

If you’re installing a new oil tank or replacing an older system, choosing a bunded tank is often the most future-proof and responsible option.

Explore Oil Tank Supermarket’s range of high-quality, compliant oil tanks today and find the right solution for your property.