About Heating Oil
In off grid domestic central heating systems in the UK, heating oil is the most widely used fuel. We refer to it as home heating oil or domestic heating oil.
It is chosen for its winter performance, affordability, and because it offers a cleaner, more efficient and hotter burn compared to other liquid fuels.
Buying heating oil when prices are low could save you hundreds of pounds.
However, you’ll need to keep an eye on prices as cheap product may not last.
Heating Oil Market Rates
Prices for heating oil, including sudden peaks and troughs, are largely affected by the price of crude oil.
This can fluctuate depending on the weather, political unrest and global production.
Recently, prices have been affected by the collapse in demand owing to the coronavirus pandemic. Local weather can affect the demand for heating oil, which in turn affects the price.
This includes prices for delivery, the amount you buy and depends on how far you are from a supplier.
How much does heating oil cost?
The price of heating oil can fluctuate and quite dramatically over time.
Having hovered between 30 and 35p per litre in 2016, it shot up to nearly 55p per litre in late 2018, and stayed around 50p per litre until January 2020.
However, the price dropped dramatically in the spring and summer of 2020.
As at September 2020, domestic home heating oil costs 46% less than it did last year. Furthermore, It has also reached its lowest price in 4 years and is 20% cheaper than in September 2016.
According to heatingoilshop.com’s records, the average UK cost of a litre of heating oil calculated between May 1st and today (16/9/2020) is is 26.62ppl (inc vat). Prices can vary greatly depending on your UK postcode, delivery to that postcode, the time of year you buy, crude oil prices and the amount you buy.
At this moment in time, crude oils were pushing higher as OPEC considers further production cuts so that crude oil prices can recover. As a consequence, when crude prices rise, domestic heating oil prices often follow 2 -3 days later.
In addition, we are a couple of weeks into the UK heating oil season where prices tend to creep up. By the same token oil distributor stocks of cheap oil are dwindling and prices will rise. Stock up now!
Why are home heating oil prices low?
Historically, prices rise in the Autumn and Winter seasons but, are dependent on weather conditions, global production, political unrest and supply issues.
Heating oil is the most widely used off grid fuel. Consequently, such price fluctuations can be a nightmare for many to manage.
Prices can also vary greatly depending on where you live in the UK, the time of year you buy, and the amount you buy.
As heating oil (kerosene) is a traded commodity, prices can vary from hour to hour, and day to day.