Heating Oil Prices
All about heating oil prices
Heating is often something that we take for granted – at least until the time comes to place an order. Only then do we have questions, especially when it comes to the prices.
We thought we’d answer a few of those that we’re most commonly asked.
Why do the prices change?
There are a huge number of external factors that impact on the price of heating oil. Most of these are beyond our control and are fixed between the oil producers. Prices fall and rise depending on the value of crude oil, which in turn is dictated by supply and demand. As the prices are changeable, we can’t give you any definite figures on where it is at this precise minute. However, we quote our lowest possible prices when you get in touch.
What’s the price of crude oil?
Crude oil is the name for unprocessed fuel. Both kerosene and gas oil are crude oil products so if the cost of crude changes, then heating oil prices normally follow. It’s hard to predict crude oil prices – again, this depends on supply and demand. For the past couple of years, producers have pumped more oil than is needed, resulting in a surplus. With supply outstripping demand, the prices are lowered. In these situations, however, the production can be cut to create demand – though it would push prices back up. It simply can’t be forecast very easily.
When is domestic demand at its highest?
If we’re talking about demand in the UK, then you’re looking at the peak periods when people use oil – namely in the colder months. More people heat their homes in winter, so historically this is when heating oil prices are at their highest. Heating oil can keep for a long time, and we recommend that customers buy their supplies early, provided they have a safe storage facility.
Why does the price of home heating oil go up for quicker delivery times?
Our drivers try to make their deliveries as efficiently as possible – it’s kinder for the environment if your drop off is part of a planned route, rather than a one-off. Quick turnarounds mean creating routes that are uneconomic, causing the increase in cost. Hence, the longer you can wait for your heating oil delivery, the more economic (and environmentally friendly) the drivers’ routes will be.
Does the price for heating oil include VAT?
Yes, your quote will be for the price per litre including VAT. This stands at five per cent for domestic heating oil as at the current date.
If you have any other questions or would like to talk to one of our friendly team please call us on 0800 032 3865 or send us a message.