Heating oil prices can fluctuate daily, often varying dramatically. There are a number of external factors that can affect the price of oil, which are beyond the control of our suppliers. Due to the following factors it’s extremely difficult to predict changes in price, however we will always endeavour to provide you with the best quote for your fuel and will update our prices daily.
What Affects Heating Oil Prices?
The Organisation of the Petroleum Exporting Countries (OPEC)
OPEC is an intergovernmental organisation of 15 oil exporting nations that work together to stabilise global oil prices and maintain a regular supply. They meet regularly to coordinate policies and any changes made to agreements can affect the price of Crude Oil, which in turn affects the price of domestic fuel.
Foreign Exchange Rates
As the UK import oil, any changes in exchange rates can directly affect the cost of your heating oil.
Conflicts in Oil Producing Countries
The cost of exporting oil can rise if there is conflict in an oil producing country. This is because there is often the need for additional security measures to safely export the oil.
Supply and Demand
The demand for heating oil fluctuates through the year, depending on factors including the seasons and weather. When oil is in high demand, the price rises as it puts a strain on the supply. This is common in the winter months, so we always recommend trying to keep your tank topped up during the summer months so that you’re able to take advantage of the typically lower prices.
Crude Oil Prices and Refining Costs
The price of crude oil can be affected by all of the factors mentioned above. As heating oil is refined from crude oil, any fluctuations in price, and also any changes to refining costs can directly affect the cost of your oil.
Fuel Duty and VAT Rates
Whilst fuel duty and VAT rates don’t change regularly, it’s still important to remember that they contribute to the cost of your heating oil. More information on this can be found here.
Distribution and Delivery Costs
The price of petrol and diesel can fluctuate often. Suppliers need to respond to these changes in order to cover any increases in delivery costs. They are also able to pass on savings to you by grouping together deliveries. If possible, it’s recommended to try and order your fuel in plenty of time so that the suppliers can plan their delivery route and group together orders. This means they use less fuel and you pay less for delivery.
Changes in weather conditions can directly affect the cost of delivery. Poor weather can mean that deliveries take longer and changes to routes may be needed, resulting in increased petrol/diesel costs and an increase in driver time.
Heating Oil Price Trends
The graph below shows the recent trend in UK heating oil prices, along with average UK temperatures.
If you have any additional questions surrounding heating oil prices, please get in touch and we will be happy to help in any way that we can.