Domestic heating oil, otherwise known as 28 second oil or kerosine can be expensive and the fluctuations in price can be frequent and unpredictable. The cost of heating oil is mostly governed by the price of crude oil and there are many factors that could cause this figure to rise and fall such as production, politics and more recently, the global Covid-19 disruptions and the warm weather. But how can the weather directly affect local domestic heating oil prices? Read on to find out more.
The warm weather can have a direct impact on the consumption and cost of heating oil. As you enjoy the warm temperatures, the supply and demand for heating your home when it is hot outside, as you can imagine, reduces greatly over the summer months and vice versa for the winter period. During these colder spells, the higher demand for oil being delivered for central heating can be interrupted by delivery delays due to bad weather. This can impact our domestic oil suppliers who may not be able to group your orders together, resulting in a higher delivery cost which could then affect the overall cost of your oil rate.
Whilst you are making a saving from using less oil to heat your home when it’s warmer, assuming that summer is the cheapest time to buy isn’t always the best approach. Carefully monitoring oil prices will get you better results. It is important to note, even though the weather can directly affect the cost of domestic heating oil, it’s usually a combination of other factors that result in the overall price fluctuations.
Since January we have seen some unusual activity where oil prices in the UK have dropped to their lowest level for 18 years. However, the Office for National Statistics has seen a big increase in the average cost of heating oil recently, taking the price from 29.9p in May to 35.3p per litre in July. The below graph shows the latest price information for domestic heating oil compared to the average UK temperature from July 2019 to July 2020. It’s worth bearing in mind that despite the cost of oil rising in June, the price is still significantly cheaper than what it was at the start of the year.
Top Tips to Save Money on Domestic Heating Oil
- Planning ahead to buy heating oil in plenty of time you can save you money by taking advantage of our economy delivery service where our domestic oil suppliers can plan deliveries by area, reducing the overall cost. These savings are passed directly on to you in the way of a cheaper oil rate.
- Ordering larger volumes of domestic heating oil can also work out to be more economical. If your tank is large enough, consider ordering more than usual while the prices are lower. Because of the larger volume, it means our domestic fuel suppliers make less deliveries which will save on transportation costs and these savings are passed on to you. Rest assured, if you order too much oil we will only fill what your tank can take and refund the rest.
- Monitoring your tank level will help you keep track your oil usage which can also help with household budgeting. To download a handy tank level monitor form click here.
At FuelFighter, we aim to keep prices competitive. To take advantage of the current lower heating oil costs, click here to get a quote and see how much you can save.