Heating Oil Prices

[Deleted User][Deleted User] Posts: 346
Forum Member
Heating oil prices have risen 50% since start of November. Who is reaping in the proffitts? Who is proffitteering?
«1

Comments

  • SigurdSigurd Posts: 26,610
    Forum Member
    ✭✭✭
    Heating oil prices are indeed utterly ridiculous. See this graph:

    http://www.boilerjuice.com/heatingOilPrices.php

    At the start of November the average price was about 45p per litre; now it's over 66p and still climbing. That means that at the start of November 500 litres would have cost £225 excluding VAT, whereas now it'll be £330. 500 litres isn't much and I think is the minimum delivery for some suppliers.

    Unfortunately my house was built to rely on oil heating and doesn't have a fireplace or chimney. About twelve years ago when heating oil was about 9p per litre that didn't seem a bad sort of design, but clearly things have changed dramatically. I think I'll get through this winter and then look into getting an air-source heat pump, but installing that wouldn't be cheap either. Anyway, the fluctuations in heating oil prices are ridiculous, and though the price will eventually fall from the current high, the general trend is always upwards.
  • Everything GoesEverything Goes Posts: 12,972
    Forum Member
    ✭✭
    I'm guessing a lot of this may be due to transportation issues with the snow. Oil companies are using it to profiteer saying "we cant make deliveries and it will cost you more" sort of excuse. Crude oil has risen but not at this sort of rate.
  • shirlt9shirlt9 Posts: 5,085
    Forum Member
    I had 500 litres delivered last week and it was £278..

    5 years ago we put in a wood burning stove and 18 months ago put in another so we have 2 on our ground floor one at the front of the house and one at the back..it is certainly cheaper than oil..even in this weather I have the oil heating on for 2 hours in a monri ng and 2 hours just before we go to bed..2 fires lit the rest of the time as I am home with a little one..our house is very hot with these fires going and I have a kitchen maid so dry most of my washing at the same time..a thick pair of jeans dry in a good hour..so have cut down on tumble dryer costs too..which for a family of 5 can be high when weather is like this..

    I would seriously consider another form of heating to go with your oil boiler..you can add a wood brner with no chimney..just use the small flue going into larger double skinned flue out of the wall..we fit our own burners its easy to do and cuts heating bills right down.
  • SigurdSigurd Posts: 26,610
    Forum Member
    ✭✭✭
    Oddly enough the current prices in Northern Ireland don't look quite as bad as I would have expected:

    http://www.cheapestoil.co.uk/

    They're higher than they were, but not completely outrageous. Unfortunately I'm not in Northern Ireland, though, so that isn't a great deal of help. I've still got enough oil in my tank to last for a few more weeks, but should I top it up now in the expectation that prices will only get higher, or assume that there will be a thaw and prices will fall? Frankly, I don't know.
  • IggymanIggyman Posts: 8,021
    Forum Member
    The current heating oil prices are undoubtedly the result of profiteering, but by who? The oil producers? The oil distributors? Both?

    Whatever, there are some real greedy, uncaring bastards out there. Welcome to the real world. :(

    Latest prices:

    http://www.boilerjuice.com/heatingOilPrices.php
  • AM ScannerAM Scanner Posts: 164
    Forum Member
    Sigurd wrote: »
    Heating oil prices are indeed utterly ridiculous. See this graph:

    http://www.boilerjuice.com/heatingOilPrices.php

    At the start of November the average price was about 45p per litre; now it's over 66p and still climbing. That means that at the start of November 500 litres would have cost £225 excluding VAT, whereas now it'll be £330. 500 litres isn't much and I think is the minimum delivery for some suppliers.

    Unfortunately my house was built to rely on oil heating and doesn't have a fireplace or chimney. About twelve years ago when heating oil was about 9p per litre that didn't seem a bad sort of design, but clearly things have changed dramatically. I think I'll get through this winter and then look into getting an air-source heat pump, but installing that wouldn't be cheap either. Anyway, the fluctuations in heating oil prices are ridiculous, and though the price will eventually fall from the current high, the general trend is always upwards.

    You dont want a chimney either as coal prices are hideously high, gas seems dirt cheap in comparison to other fuel sources
  • [Deleted User][Deleted User] Posts: 4,317
    Forum Member
    ✭✭✭
    Sigurd wrote: »
    Oddly enough the current prices in Northern Ireland don't look quite as bad as I would have expected:

    http://www.cheapestoil.co.uk/

    They're higher than they were, but not completely outrageous. Unfortunately I'm not in Northern Ireland, though, so that isn't a great deal of help. I've still got enough oil in my tank to last for a few more weeks, but should I top it up now in the expectation that prices will only get higher, or assume that there will be a thaw and prices will fall? Frankly, I don't know.

    I'm in Lisburn, NI and the cheapest for 500 litres is £283.50

    Bloody ridiculous when a few weeks ago it was £214
  • SigurdSigurd Posts: 26,610
    Forum Member
    ✭✭✭
    The Federation of Petroleum Suppliers has recently issued a statement:

    SUPPLY AND PRICING OF HEATING OIL - DECEMBER 2010

    However, despite what they say, I agree that there has been profiteering or that at least the reasons for the outrageously high prices need to be investigated by some independent body.
  • jassijassi Posts: 7,895
    Forum Member
    AM Scanner wrote: »
    You dont want a chimney either as coal prices are hideously high, gas seems dirt cheap in comparison to other fuel sources

    Which is interesting when you consider all the whining about gas prices that people have been making over the last few months :D
  • SigurdSigurd Posts: 26,610
    Forum Member
    ✭✭✭
    Lins_81 wrote: »
    I'm in Lisburn, NI and the cheapest for 500 litres is £283.50

    Bloody ridiculous when a few weeks ago it was £214
    Bear in mind that I wrote my post on the 7th of December, and prices certainly haven't improved since then,

    ETA: I ordered 500 litres on the 13th of December, and the bill (including VAT) came to £293.48, so I'm certainly no better off in that respect than you are.
  • IggymanIggyman Posts: 8,021
    Forum Member
    Sigurd wrote: »
    The Federation of Petroleum Suppliers has recently issued a statement:

    SUPPLY AND PRICING OF HEATING OIL - DECEMBER 2010

    However, despite what they say, I agree that there has been profiteering or that at least the reasons for the outrageously high prices need to be investigated by some independent body.

    That 'report' (I mean, catalogue of feeble excuses) is the biggest load of bollox that I've read for some time.

    Patronising w*nkers. Perhaps they're so busy lining their pockets that they don't realise that this will bite them in the arse, ie people will be looking at installing cheaper and perhaps 'greener' heating alternatives.
  • [Deleted User][Deleted User] Posts: 402
    Forum Member
    Stating the obvious here, but purchase the oil in bulk when it's summer or autumn if you want to avoid inflated prices. It's a private sector, so they'll charge you as much as the market will accept, and in winter people are much more willing to pay over the odds.
  • IggymanIggyman Posts: 8,021
    Forum Member
    I usually do, but I'm not just thinking of myself - I'm also sure that after this fiasco the oil companies will expect people to purchase more this spring and summer (to beat high winter prices) and hence try to keep the prices articifically high.
  • SigurdSigurd Posts: 26,610
    Forum Member
    ✭✭✭
    MalUK wrote: »
    Stating the obvious here, but purchase the oil in bulk when it's summer or autumn if you want to avoid inflated prices. It's a private sector, so they'll charge you as much as the market will accept, and in winter people are much more willing to pay over the odds.
    That's true. However, why should users of oil be subject to such volatile prices? The price of electricity or mains gas doesn't suddenly shoot up in a cold spell just because demand has risen. I suppose the answer is that the prices of heating oil and LPG are completely unregulated, so maybe we need the equivalent of a body similar to Ofgem to apply some controls to the supply and pricing of oil and LPG?
  • [Deleted User][Deleted User] Posts: 402
    Forum Member
    Sigurd wrote: »
    That's true. However, why should users of oil be subject to such volatile prices? The price of electricity or mains gas doesn't suddenly shoot up in a cold spell just because demand has risen. I suppose the answer is that the prices of heating oil and LPG are completely unregulated, so maybe we need the equivalent of a body similar to Ofgem to apply some controls to the supply and pricing of oil and LPG?
    Technically, since the utilities are privately run, gas and electric should be volatile too. I think the main difference is you are using a minority fuel, so there's less pressure on politicians and other decision makers to help. Whenever British Gas puts up prices the tabloids go crazy, so they can't take full advantage of the situation.
  • GlastonGlaston Posts: 1,926
    Forum Member
    ✭✭✭
    Sigurd wrote: »
    That's true. However, why should users of oil be subject to such volatile prices? The price of electricity or mains gas doesn't suddenly shoot up in a cold spell just because demand has risen. I suppose the answer is that the prices of heating oil and LPG are completely unregulated, so maybe we need the equivalent of a body similar to Ofgem to apply some controls to the supply and pricing of oil and LPG?

    World prices.
    Electricity is UK generated although we do import quite a lot from France.

    Oil, oil products and LPG follow the vagaries of world prices. World prices tend to rise during bad weather.

    You could try regulating the prices, LOL
  • tingramretrotingramretro Posts: 10,974
    Forum Member
    ✭✭
    MalUK wrote: »
    Stating the obvious here, but purchase the oil in bulk when it's summer or autumn if you want to avoid inflated prices. It's a private sector, so they'll charge you as much as the market will accept, and in winter people are much more willing to pay over the odds.

    Good advice, I'd say.
  • SigurdSigurd Posts: 26,610
    Forum Member
    ✭✭✭
    Glaston wrote: »
    World prices.
    Electricity is UK generated although we do import quite a lot from France.

    Oil, oil products and LPG follow the vagaries of world prices. World prices tend to rise during bad weather.

    You could try regulating the prices, LOL
    As far as I can gather, the recent rise in world oil prices has been very much smaller than the increase in the price of heating oil in the UK.

    According to this graph, the world price of crude oil went from around $84 at the end of November to a high of $91 or thereabouts in late December. (Presumably those prices are per barrel.) If I've done my sums right, that's an increase of 8.3%

    However, UK heating oil prices rose from around 49p per litre at the end of November to a high of about 73p per litre in late December, and that's a rise of 49.0%. See:

    http://www.boilerjuice.com/heatingOilPrices.php

    Yes, the world oil price obviously affects the UK price of heating oil, but it seems to me that there are other market factors operating within the UK, and that the principal one is probably that oil companies want to make as much profit as they possibly can when people are in greatest need of their product.

    (Feel free to check my sums, because arithmetic has never been one of my strong points!)
  • IggymanIggyman Posts: 8,021
    Forum Member
    Glaston wrote: »
    World prices.
    Electricity is UK generated although we do import quite a lot from France.

    Oil, oil products and LPG follow the vagaries of world prices. World prices tend to rise during bad weather.

    You could try regulating the prices, LOL

    World prices? Doesn't wash I'm afraid. Look at the graphs on this page:

    http://www.icsheatpumps.co.uk/blog/ripoff-claims-heating-oil-price-rise/

    Crude oil - up 10%

    Heating oil - up 51%
  • SigurdSigurd Posts: 26,610
    Forum Member
    ✭✭✭
    Iggyman wrote: »
    World prices? Doesn't wash I'm afraid. Look at the graphs on this page:

    http://www.icsheatpumps.co.uk/blog/ripoff-claims-heating-oil-price-rise/

    Crude oil - up 10%

    Heating oil - up 51%
    I'm relieved to see that the figures that you provide are pretty much in line with my own rough calculations — though I'm not relieved at all about the current price of heating oil.
  • IggymanIggyman Posts: 8,021
    Forum Member
    Sigurd wrote: »
    I'm relieved to see that the figures that you provide are pretty much in line with my own rough calculations — though I'm not relieved at all about the current price of heating oil.

    Quite. But what can be done about it? The government won't give a damn as they are too busy lining their pockets with the extra tax collected. The oil producers and distributers are rubbing their greedy little hands with much relish. Us heating oil users are in the minority compared to gas consumers so we have little say in the matter.

    Think I'll invest in a wood burning boiler, some solar panels and a wind turbine ..........
  • shirlt9shirlt9 Posts: 5,085
    Forum Member
    Sigurd wrote: »
    Bear in mind that I wrote my post on the 7th of December, and prices certainly haven't improved since then,

    ETA: I ordered 500 litres on the 13th of December, and the bill (including VAT) came to £293.48, so I'm certainly no better off in that respect than you are.

    Just paid £353 for 500 litres today..
  • BunnyfooBunnyfoo Posts: 3,610
    Forum Member
    ✭✭✭
    We had this same problem. There was no oil in the tank went to order some and it was £560 for 500 litres instead of £230 (which we paid only 2 months previously!) outrageous! we didnt buy any and are using gas heaters which have worked out a lot cheaper thankfully!
  • dave81ukdave81uk Posts: 1,407
    Forum Member
    ✭✭✭
    Ours is about to run out and don't know what we'll do as we can't afford those prices. Anyone know anything about electric heaters? Which kind are the most efficient?
  • SigurdSigurd Posts: 26,610
    Forum Member
    ✭✭✭
    Iggyman wrote: »
    Quite. But what can be done about it? The government won't give a damn as they are too busy lining their pockets with the extra tax collected. The oil producers and distributers are rubbing their greedy little hands with much relish. Us heating oil users are in the minority compared to gas consumers so we have little say in the matter.

    Think I'll invest in a wood burning boiler, some solar panels and a wind turbine ..........
    What can be done about it? Well, not a lot, probably, but like you I'm going to have to think about some alternative form of heating. Unfortunately, changing from oil won't be cheap, but I'm beginning to think about installing an air source heat pump some time in the next few years.
Sign In or Register to comment.