Heating oil prices 2014 – what trends to expect

Heating Oil Prices 2014

What heating oil price trends can you expect in 2014? ValueOils.com monitor heating oil prices on a daily basis and often find that the price will do the opposite of what would normally be expected, with peaks and troughs throughout the year. We recommend keeping an eye on political unrest around the Middle East and the UK Exchange Rate as well as the weather forecast. We always recommend that you stick to your budget and order well in advance of running out. A number of factors which played a key part in heating oil price movements throughout the 2013 are listed below. There are significant savings to be made – in Northern Ireland for example, where margins tend to be particularly tight, a customer purchasing 1,000 litres of heating oil could save up to £100 by buying at the right time.

Cold weather in spring 2013

According to the Met Office, March 2013 was the second coldest in the UK since records began in 1910 with the UK average temperature around 2^oC. As any fuel distributor will tell you, when the mercury drops and temperatures are low, demand increases. Spring 2013 also saw a significant snowfall across the UK which put added pressure on distributors as many roads throughout the country became dangerous or impassable. Extremely cold weather and rises of up to 60% in demand can often see prices increase.

Political Unrest in Egypt / Syria

As Andy Murray was playing in the Wimbledon Final, (and the court side temperature hit of 104^o Fahrenheit!) there was serious political unrest developing in Egypt and Syria. Although neither of these countries produce a large volume of oil, the tension made traders wary of the potential closing of the Suez Canal. There was a surge in heating oil prices during July of almost 3 pence per litre, which went against the expected norm for the time of year.

UK £ vs $ Exchange Rate

The UK currency has been performing well recently against the dollar and this has helped heating oil prices remain substantially lower than they were in December 2012. The pound was weakest against the Dollar during July and has recently risen to its strongest level of 2013. Unusually, prices are currently lower than they were during the summer which shows that it doesn’t always pay to stock up during the summer months.

How to lower fuel bills in 2014

Finally, the key question for customers is how to reduce fuel bills in 2014. Assuming the price of oil does not change, there are a number of factors which you can consider that will increase the fuel efficiency of your home:

Upgrade your boiler to a condensing boiler – OFTEC suggest this could save you up to £200 per year.
Have your boiler serviced by an OFTEC approved engineer – we now offer this in most areas of the UK.
Insulate walls and upgrade your windows to double glazing if you currently have single glazing.

If you have any questions about our heating oil prices or have any suggestions on how to help others save on their heating bills, please get in touch with us below and we will get back to you as soon as we can.

Read more @ http://www.valueoils.com/

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Heating Oil Buying Groups – ValueOils.com Investigates

Heating Oil Groups are made up of people who want to buy oil in a thrifty fashion. People can come together and order oil in bulk amounts for several homes. Generally speaking, the more oil you order, the lower the price per litre will be. There are other benefits, though there are also some common problems, which you should be aware of. Listed below is the key information regarding Oil Buying Groups:

Fill your Tank for Less: As you purchase larger volumes of oil the price per litre should fall. If a group of people decide to share a large delivery of oil between them; they would expect to pay less than filling their own tank individually. Delivery costs may also be cheaper. If a delivery driver only has to visit one area or street, to complete several orders, diesel costs will be lower and time will be saved. Small word of caution on the headline grabbing savings, they may not turn as great as promised.

Be Part of Something: Joining an Oil Group may help make you a visible member of your community. Community cohesion is important to lots of people and this could be a way of helping to maintain or improve that. You may make new friends or strengthen existing ties in your neighbourhood.

It’s Good to be Green: Lowering carbon dioxide (CO₂) levels in the Earth’s atmosphere has long been on scientists’ agenda. However it is a relatively recent trend for people to take matters into their own hands and, no matter how small, contribute to the health of the world. Joining an oil club means there will be fewer vehicles on the roads delivering small amounts to individuals. Fewer vehicles on the roads will result in less CO₂ being released.

Difficulties may arise when it comes to the running of the oil group. It is important to have a competent administrator in the group for key decisions. Problems will appear if the wrong decisions are made. Below are some of the key problem issues:

Ordering Oil at the Right Time: Oil prices vary sharply at different times in the year. When ordering a bulk amount it would not be advisable to order when the prices are at a premium.

Communication: For the group to run smoothly, they will have to communicate, even more so if it is a large group. It is important to know if anybody wants to cancel, change their order, move house, go on holiday etc. Problems and arguments are likely to develop if decisions are being made without the proper consultation.

Group Size: It is important to make sure your oil group does not expand out of control. Limits on the amount of members you can expect to handle should be in place. It is easier to manage a smaller group of like minded people; easier to keep them focused on wanting the same thing. If there is a large membership it is likely to affect the unity of your group. However if you have the time and resources to deal with this then it shouldn’t be a problem.

Oil Distributors: During periods of peak demand, many oil distributors will give priority to their individual loyal customers who buy regularly at normal prices. Many distributors will not even quote buying groups at certain times of the year or will actually surcharge them as they are only being used if any when it suits the buying group.

Buying Group Leader: This person should be chosen carefully. They should be upright and of independent mind. There have been examples of the leader getting a “special or preferential rate” for their own property if and when a bulk buying group order is placed with a distributor. There are also examples of leaders actually charging members of the group for their services to the buying group.

Regionalisation: The success of buying groups also depends upon the area of the UK in which they operate. The most successful buying groups operate in Southern England where prices seem to be higher than UK averages. The least successful buying groups try to operate in Northern Ireland where heating oil prices are most competitive in the UK.

Boiler Efficiency: We strongly recommend servicing your boiler annually as many boilers in Northern Ireland operate at 55% efficiency. No matter what the savings from group buying are you could still be wasting money.

Heating Oil Groups are becoming more and more popular. In a tough economic climate all savings are important. Having read this information, if you are thinking of joining a buying group or are part of one already, feel free to contact us.

Fuel poverty – What can be done?

Fuel poverty has long been recognised as a problem in society. It is generally assumed that a home spending more than 10% of its income on heating is in fuel poverty, though the actual definitions have recently changed slightly. You can read more about official government fuel poverty statistics by clicking here.

Causes of Fuel Poverty

Fuel poverty has unfortunately become an increasingly common term over recent years. There are a number of factors which have contributed to the rise in fuel poverty experienced throughout the UK, including:

Rises in the cost of wholesale energy
Inflation which is squeezing families disposable income
The recession caused many people to lose their jobs and cuts to hours and incomes were also made.
Inefficient heating systems – oil became a popular heating form in the 1980’s and many boilers have not been replaced since then (we even read of a user using a boiler form the 1960’s!)
Poor quality of housing / lack of insulation in the home.

Government Legislation to Combat Fuel Poverty

At the turn of the century parliament passed the Warm Homes and Energy Conservation Act. This set legally binding targets to ensure that nobody lived in fuel poverty. Government attention around this time helped to dramatically reduce the numbers of people experiencing fuel poverty. However, since 2004, energy prices have been on an upward trend and more people are being affected by higher energy costs.

In recent years legislation has been passed, such as the 2008 Climate Act, which aims to lower carbon emissions in the UK. This will please green enthusiasts as there will be obvious environmental benefits. However, questions are now being asked as to whether or not the UK Government can limit its carbon footprint, while also tackling the fuel poverty suffered by low income families.

Wholesale Energy Market

The fuel industry is a volatile market. It is not practical for the Government to attempt to lower energy costs as the prices are often dependent on the politics and stability of oil rich areas. The heating standards of households affected by fuel poverty are often inefficient. This could mean a substandard boiler or a lack of insulation. It has been suggested that measures are introduced to improve the energy efficiency of low income households. The more efficient the heating systems of these homes are; the less they will have to spend on their heating bill. Those who are concerned with climate change also believe that this is the best way to reduce the amount of energy being used.

Energy Efficiency

The UK has implemented a number of initiatives which aim to make the methods of improving energy efficiency affordable to those who need it the most. However, if everyone does maintain efficient heating systems, demand for fuel would drop. This would be considered a success for environmentalists but may adversely affect fuel prices. To combat that possibility it is not enough for the Government to combat fuel poverty by improving fuel efficiency.

Recommendations to combat fuel poverty

If money is tight, contact your local Citizens Advice Bureau, who will be able to ensure you are receiving the correct benefits.
Keep an eye on fuel prices and buy as much as possible when prices are low – we have seen a £70 difference in the price of 700 litres in 12 months!
Visit the Energy Saving Trust at http://hec.est.org.uk/ who can provide details on energy efficiency improvements which can be made to your home with estimated cost savings.
Visit our blog for some further money saving tips.

How Storms can affect the Oil Industry

February 2014 has witnessed heavy rain, gales and floods across the UK. It has also been one of the wettest winters on record. This type of weather can cause homeowners endless problems and has done so in many areas, particularly south west England and south Wales, in the winter of 2013-2014.

There has been extra pressure on household pipes and central heating systems due to the heavy rainfall. The main problems are flooding due to burst pipes. Surface water and extremely wet soil from rain can cause the ground to shift. This can put stress on household pipes which can cause them to crack and collapse. By having your pipes and heating oil system maintained and inspected regularly by an OFTEC / GasSafe qualified engineer, you can avoid these problems.

Action which can be taken by home owners

It is advisable to take preventative action by insulating the fuel pipes that connect the boiler to the oil storage tank. This will stop them from freezing and then breaking. Ensure that your home is protected from potential floods as unexpected water can cause a host of problems and can prove costly. For Heating Oil users, it is important to ensure that your oil tank is securely fastened and equipped with a shut off valve in case of high water and floods. Locate your oil tank where it is above any potential flood level and sheltered from storm force winds. Contact your local council for more information on how likely floods will be in your area and find out what options are available to protect your home.

Changes in temperature, precipitation, sea level, and the frequency and severity of extreme events will likely affect how much energy is produced, delivered, and consumed in the United Kingdom. A large portion of UK energy infrastructure is located in off-shore areas and therefore sensitive to sea level rises and storm surges. Changes in the frequency and severity of storms and other extreme events may also damage energy infrastructure.

Disruptions caused by severe weather

Disruptions to energy supply due to compromised infrastructure can affect many activities, depending on the destination and final use of the fuel. Disruptions in the supply of oil would affect the production of transportation fuels. Disruptions in natural gas supply could affect electricity generation, residential and commercial heating, and industrial processes. There are many examples of at risk energy infrastructure in the UK.

The North Sea

The North Sea oil and gas industry is set to lose hundreds of millions of pounds a year as global warming threatens to unleash increasingly frequent and intense storms, producing bigger waves that could damage oil rig platforms and make it harder for staff to do their jobs.A rise in sea levels and more intense storms and hurricanes in coastal areas could increase the risk of energy supply disruptions. The stormier weather could possibly increase of the costs of the North Sea oil and gas industry, in the form of damage, lost production and, most of all, the construction costs to strengthen the platforms.

On-shore, flooding and intense storms can damage power lines and electricity distribution equipment. These events may also delay repair and maintenance work. Electricity outages can have serious impacts on other energy systems as well. For example, oil and gas pipeline disruptions following extreme weather events are often caused by power outages rather than physical damage to the infrastructure.

Oil Tanks – What you need to know

Oil storage tanks are available in a wide range of sizes and materials. Tanks are a vital part of oil fired heating systems. The condition of the tank is therefore an important factor in the efficiency of a domestic heating system. It is recommended that oil tanks are serviced at least annually.

Common Maintenance Issues:

If your oil tank is unsteady or bevelled it could lead to an oil spill. This can also prove hazardous to those making deliveries to the tank. If you are concerned that your tank is in a dangerous position – seek expert advice.
Water entering your oil tank can cause various problems. The tank wall should be impermeable to prevent oil from spilling out and also to stop water going in. Water can also form inside the tank due to condensation in certain conditions.
Water will fall to the bottom of the tank and can lead to sludge formation. If that rises to a level that reaches the fuel supply line, this could prevent the boiler from operating at its maximum efficiency or it could lead to a boiler failure. It can also corrode the tank and fuel lines, which could lead to leaks. These are costly consequences of an avoidable issue.
Over time, plastic tank lids can go concave. This means water can fall directly into your tank.
In colder conditions, ice can form in the tank. Heating oil is more likely to thicken to soft wax than freeze. This could prevent the oil from reaching the boiler or clog the fuel filter. Kerosene is unlikely to freeze in the UK as it has a freezing point of around -39°C. However, if there is water in the tank this can freeze which can cause similar problems to an oil freeze.
Plastic tanks can become brittle and crack after years of use. It is wise to keep an eye on the condition of the tank. This way you can replace it, if needs be, before any spillages or leaks occur.

Types of Tank

There are large tanks for commercial operations and smaller ones for domestic uses. The size, shape and material of a tank can be tailored to fit various installation requirements. If your tank is located near natural water sources, there are laws in place to ensure that tanks are contained properly. Spills are damaging to the environment and costly to clean up.

Maintenance Tips:

The position of your tank is important. If you are installing a new tank avoid putting it where roof rainwater runoff lands.
To avoid your oil freezing or waxing you could consider building a heated enclosure around your tank – this step will also reduce the risk of water entering the tank.
Install properly sealed fill and vent pipes on the oil storage tank.
Make sure your tank has a filter bowl fitted and it keep it clean to stop it from becoming clogged or blocked.
Have your oil filter changed each year when your furnace is professionally serviced.
Be alert to any oil smells near the tank and inspect the underside of above ground tanks for oil spots or drips

If possible, install the oil tank so that the oil tank fill pipe end is sloped downwards. This will cause water entering at the fill pipe to pool right below the filler cap where it can be observed and pumped out.
Keep the heating oil tank filled during warm weather. By minimizing the air space above oil in the oil storage tank you will reduce the oil tank air “exhale” as the oil tank warms, and “inhale” as the oil tank cools, thus reducing outside air and moisture being drawn into the oil tank.

Watch for rust or corrosion where legs are welded to the tank.

Regularly check the outside of tanks for rust. Clean off rust and apply rustproof paint.

Check the tank for problems after each fuel delivery.

If you have an ageing tank, a clean out may be required. Water and sludge will build up over time. If your tank is a decade old this is an advisable step.

Tank locks, gauges and fuel additives are widely recommended by oil tank manufacturers. Alarms are also available to alert you when you run low on oil.

Oil tanks are unfortunately a common target for thieves. For more information on heating oil security click here.

Will Scottish Independence affect UK heating oil prices?

In March 2013, the Scottish Government announced that they would be holding a referendum to decide if Scotland should become an independent nation. The referendum is due to be held on 18^th September 2014 and could have implications for the exchange rate, North Sea Oil and Gas reserves and the economy. As well as this, Scottish voters must also consider changes in taxes, pensions and savings.

Scottish users of heating oil will be keen to know if they will see an increase in heating oil prices, if they vote yes, while users of oil throughout the UK will also want to keep a close eye on events in the chance that prices could be affected. If you are based in Northern Ireland, did you know that the main supply of heating oil into Northern Ireland comes from Scotland – the Petroineos Plant at Grangemouth. Read on for the key factors which could affect the price you pay to heat your home.

Currency / Exchange Rate

Likelihood to effect UK Heating Oil Prices: 80%

As oil is traded in US Dollars ($), the exchange rate plays a big role in the price consumers pay for their heating oil. A bad day for GBP (£) can see the price of oil go up, while on a good day it can drive the price of oil down. Recently, the leading UK parties have ruled out a currency share, so if Scotland does vote ‘Yes’ for independence in the referendum, it is likely to have an impact on the GBP exchange rate vs. the Dollar and this in turn may affect the price that UK consumers pay for their heating oil. Whether or not it would have a long term impact remains to be seen – if Scotland does become independent, expect a reaction from the currency one way or the other.

North Sea Oil and Gas

Likelihood to effect UK Heating Oil Prices: 40%

Outside of London, Aberdeen has the highest number of millionaires per capita in the UK, while unemployment is almost non-existent in the area. The reason for this is simple – North Sea oil and gas reserves. According to the BBC, “for 40 years, the industry has brought huge wealth to the UK, both in profits for the private sector and in taxes for public services”. There are an estimated 24 billion barrels of oil remaining in the North Sea which the Scottish Government estimates would bring tax revenue of £57B by 2018. Both governments are keen to show that their plans for the North Sea Oil reserves will best serve the population.

However, generally, as oil is traded on the world market, and the UK being a Nett importer of crude oil, the likelihood of an independent Scotland having a major influence on UK heating oil prices remains fairly low. In March 2014, the crisis in the Ukraine / Crimea has not had a major influence on heating oil prices.

UK Economy

Likelihood to effect UK Heating Oil Prices: 30%

With oil being traded on the world market, the focus is generally on news in the 2 big economies – the USA and China. The UK is currently 14^th on the worldwide oil consumption list and this would likely fall if Scotland became independent. The likelihood of this affecting heating oil prices would remain fairly low.

BP / Shell / Ineos Comments

Likelihood to effect UK Heating Oil Prices: 10%

While these companies will have relatively little impact on world oil prices, their comments are worth considering. Ineos, owner of the Grangemouth Refinery, who came into the news in autumn 2013 commented that “Grangemouth will survive” whatever way the vote goes. This is good news for the local economy, as up to 10,000 jobs rely on the plant and fuel users in general as Grangemouth supplies around 70% of fuel used at Scotland’s filling stations.

Both BP and Shell have a keen interest in Scotland and have invested heavily in the region. Both companies commented that they would prefer for Scotland to remain as part of the UK, as it reduces questions marks over their investments, currency and tax rates. However, both companies are used to dealing with volatile political environments and would be able to cope with a ‘Yes’ vote.

Conclusion

After considering the factors above, it is likely that whatever way the Scottish public vote in September, oil prices will be slightly affected. Whether or not there will be a lasting effect remains to be seen. The good news for heating oil users is that prices are currently down around 15% vs March 2013. It may be a good idea to fill up over the summer to avoid any volatility in prices after September – though a word of warning – prices were lower during winter 2013 than they were in the summer. We can’t be sure what will happen with prices, but one thing we can guarantee is that ValueOils.com will be priced at the sharp end of the market.

How long will my heating oil order last?

UK heating oil prices have been declining for around the last 18 months. The good news for heating oil users is that the average UK heating oil price has fallen by around £60 on 1,000 litres vs. the same time last year and over £100 vs. 18 months ago.

So, if you are thinking of ordering 1,000 litres this summer, you may want to know how long you can expect your heating oil to last. There are a number of variables which will affect how long your heating oil is likely to last. For some of our customers, 1,000 litres may last a full year, while for others it may last for only a matter of months. You will be able to influence how long your oil lasts to a degree, while other factors will remain completely outside of your control.

Weather

The winter of 2013/14 was much milder across the majority of the UK than the winter of 2012/13. Having examined my own heating oil usage, I found that I have actually used 15.2% less oil this year than in the previous year. When the price drops are also taken into account this has resulted in a 23.9% drop in my heating costs. For each 500 litre fill ordered this year, it lasted on average 18 days more than the previous year! Unfortunately, living in the UK, we are never really guaranteed anything weather wise – next year could be much colder and in turn heating oil usage could be much higher.

Boiler

Having an efficient boiler will increase the length of time that your heating oil will last. Many new condensing boilers operate at 90%+ efficiency, while many older boilers operate around 60-70%. Replacing you old boiler with a new one can be expensive (£1,000+ for just the boiler), so if this is not an option we really recommend having an annual boiler service by a qualified OFTEC technician. This will ensure that your boiler will run as efficiently as it can and you may get a couple of extra weeks out of your oil.

Insulation

If your house is well insulated, you will generally spend less money as the heat is retained in the house, rather than being lost through the roof, windows and walls etc. Low cost ways of improving home insulation include draught excluders, hot water tank jackets and loft insulation, while solid / cavity wall insulation and double glazed windows are more expensive ways of improving your homes insulation levels.

Size / type of house

This is an important factor when it comes to energy usage. If you live in a large detached home, it is more likely to use additional energy when compared to a smaller terraced house. Consider turning off radiators in rooms which aren’t used to keep your oil tank full for as long as possible. If you are moving house, remember there will be multiple changes (older boiler / insulation / size of house etc) and your fuel may not last for as long as you are used to. If you are moving home, you may wish to view the EPC rating which rates the home’s performance in terms of energy use per square metre of floor area, energy efficiency based on fuel costs, and environmental impact based on carbon dioxide (CO2) emissions. The higher the number the more energy efficient the home is and the lower the fuel bills will be.

Household demographic

Homes with young or elderly people generally tend to have their home warmer than those without. If you have just retired or are welcoming a new member to the family this may substantially increase your household fuel consumption. It is likely that you will be around the home more and in winter have the heating on for longer periods.

Summary

To summarize, due to the high number of variables, it is almost impossible for us to tell you how long you can expect your oil to last. However, with ValueOils you can look up old orders to establish a guideline for how long previous oil orders have lasted. You can use this as a basis for what to expect with your next order, but don’t forget to check your tank more regularly if there is a cold snap. If you can implement any low cost insulation methods, these will all help your fuel last longer, as will an annual boiler service.

How ValueOils.com is tackling fuel poverty in Northern Ireland

ValueOils.com customers in Northern Ireland may have recently received an e-mail detailing our new pricing policy. This change is part of our plan to combat fuel poverty, an issue wepreviously addressed and considered plans for solving on our blog. ValueOils.com’s new pricing policy is a solution to the problems posed previously that will break ground in providing the most affordable fuel possible for low-income families. In response to the interest generated by this alternation, we aim to answer questions and concerns and to shed light on what this change means in this article.

Background to Fuel Poverty

The definition of fuel poverty relies on a ratio between fuel costs and income. In general, fuel poverty can stand to mean that a household spends at least 10% of its income on fuel.

What fuel poverty means for an average consumer is that a significant proportion of funds are spent on buying small amounts of fuel and regularly, as they cannot afford to buy large amounts of fuel at once. This can be problematic considering the traditional pricing methods for home heating oil companies – households which don’t have the money to spare are required to pay more for the same amounts of fuel (when spread across more deliveries – ie 3 x 300 litre will generally cost more than 1 x 900 litre delivery).

In 2011, it was estimated that 42% of households in Northern Ireland suffered from fuel poverty – as many as 300,000 homes. However it’s not just Northern Ireland – fuel poverty affects the whole of the UK, with as many as 4.5 million households. The statistics for fuel poverty are dizzying.

Traditional Oil Distribution

It is, almost without exception, the case for home heating oil suppliers to price their orders based on the amount of fuel ordered. In other words, the pence per litre rate will vary for different order sizes. Large orders traditionally have a lower pence per litre rate, while smaller orders tend to be more expensive to compensate for the higher travel costs in proportion to the order’s profit.

For example, for traditional oil suppliers – and until recently, ValueOils.com NI used quantity price bands. –This meant that an order for 300 litres compared to an order for 900 litres, the price of the 300 litre order would be disproportionately large. Traditionally, there would be no stated charge for delivery, but the delivery costs are incorporated into the total order price. This pricing scheme is a major contributory factor to fuel poverty!

A household that, each time it orders fuel, cannot afford the example 900 litre payment must settle for the smaller 300 litre payment. When this amount of fuel is used up, they must purchase again, and the chances are they still don’t have enough disposable income to buy a large supply. This means that this buyer ends up spending far more for the same amount of fuel than someone who buys in instalments of 900 litres.

Almost every oil supplier, wherever you live – Northern Ireland, Scotland, England or Wales – uses this pricing system, which is strictly disadvantageous to consumers with limited income, especially those already in fuel poverty. If you’re a buyer who doesn’t need large amounts of oil, you may have participated in or considered using something like a buying group to order oil.

Buying Groups – a partial solution to fuel poverty

ValueOils.com has previously looked into Buying Groups and Oil Clubs and their many advantages to low-income buyers. Buying Groups are communities which come together to order a large amount of fuel together for their houses or neighbourhood. The traditional advantages of this option are:

Reduces the overall cost of the order – the pence per litre is lower for large amounts
Local Community – provides a platform for involvement
Reduces CO2 emissions – less deliveries to different houses, as there is only one delivery day for the combined community

Buying groups are an efficient measure for preventing or lessening the effects of fuel poverty – they are a means of addressing the contradictory traditional heating oil pricing system by taking advantage of the lower price per litre for larger orders.

Such options have their restrictions. If only a small amount is delivered to each person in a buying group, it may not be long before an order is needed again. Individual heating prices can also be very competitive in Northern Ireland and buyers may feel tempted to get a better deal this way. There is also the risk of ordering a bulk amount at a time when heating oil is more expensive, thus getting a bad deal. Most of these problems can be associated with trying to organize a large group of people. In other words, while this can work, there should ultimately be a better option for buying small amounts of heating oil. This is why we consider ValueOils.com’s new pricing policy to be a good solution for buying individually.

ValueOils.com’s New Pricing Policy

Our new policy aims to counteract fuel poverty in Northern Ireland by making purchases more accessible and less unfair for limited income buyers, while still maintaining excellent value for large orders.

We can outline the new policy as follows:

There is no margin added to fuel prices. The delivery cost, instead of being ‘hidden’ as an amount added to the fuel price quote, is taken out of the quote and a set standard charge identical for all customers of £19.90, no matter the travel distance.
No matter what the size of order, the price per litre is exactly the same.

These changes have great advantages compared to traditional pricing methods:

Combats fuel poverty – buyers with limited incomes aren’t charged a higher rate and get the same price per litre as someone buying more.
Often cheaper – the delivery price is ValueOils.com’s profit for each order, meaning we can focus on making the oil price itself as cheap as it can possibly be for you.
No ‘hidden’ costs – The oil quote price is exactly what you pay for the oil and the delivery charge is exactly what you pay for delivery. Nothing is added to either price.
Straightforward – there’s no longer any need to quote different amounts to see which one you’ll get the best deal with. Order exactly as much as you need for a fair and even price.

Don’t forget – ValueOils.com also operate a ‘Pre-Payment Scheme’ which enables you to set money aside each month in advance of your order – helping you to plan in advance and spread the cost of your heating oil purchase.

We are happy to hear from you

ValueOils.com remains committed to providing the best prices possible for home heating oil, and we are confident that our new pricing policy will both save you money and start to mend the gap between NI households in fuel poverty and homes which can afford to buy large individual orders of oil, and we think other suppliers may decide to follow us after this step forward.

Are Oil Prices heading towards $30 a barrel?

So far, 2015 has seen oil prices plunge significantly against 2014 prices and lows of around $45 per barrel were reached in January 2015. Oil Prices then stabilised at around $55 – 60 per barrel from February – May 2015. Since then however, prices have been declining again and at the time of writing are just below $45 per barrel – 6 ½ year lows.

These lower prices are great news for our customers, who have become accustomed over the past number of years to paying over £300 for 500 litres of oil, putting substantial strain on household budgets. The average UK price for 500 litres is currently around £170 making purchases more manageable.

What is driving the oil price down?

A global surplus of oil has been created due to slowing demand in China, fracking in the US becoming financially viable at lower prices, OPEC (namely Saudi Arabia) refusing to lower their daily output and the potential for more oil to be on the market in the near future, after a deal was struck with Iran.

Could oil prices hit $30 per barrel?

The oil market as you may know is particularly volatile and prices will fluctuate daily. Keep an eye on the news for developments in China as this may play a key role in influencing oil prices.

According to Fuel Prices Online, “The recent drop in the price of oil confirms the global commitment producers have to their current levels of high output. Could we see $30 oil in the next 15 months? Absolutely, and headlines like China’s recent yuan devaluation and the prospect of sanctions on Iran being lifted will only contribute to such volatility. If prices do begin to rise, the recovery in prices from a six-year low may be short-lived as the U.S. enters the slow demand period in September.

We hope to see prices continue to fall lower, as this is good news for all. You can make even further savings on heating bills by turning down thermostats, improving insulation levels, upgrading to eco heat additive, buying in larger volumes as the pence per litre normally falls with higher order volumes. If you need any further information on oil prices, visit our Oil Prices Page. If you would like to contact us, please use our live chat facility, or visit our contact page for telephone number and email contact.

Heating Oil Prices 2015

As many heating oil users will know, heating oil prices hit a 5 year low in January 2015, with prices reaching around $45 per barrel, falling from around $120 per barrel in the previous summer – great news for our heating oil customers.

Prices tumbled due to a number of reasons, but in particular, fracking carried out across the US massively increased supplies. Despite these increased supplies OPEC, would have traditionally cut output in order to maintain higher prices decided to maintain their current output levels at the end of November – this single action saw 2.5 pence per litre (or 6.5%) fall off the price of oil in a single day, an unheard of in the industry.

What has happened to oil prices so far in 2015?

As we have mentioned already prices hit a low in January 2015 and currently, prices are trading at around $65 per barrel. A couple of global issues have allowed UK heating oil prices to increase.

Due to the costs involved, US fracking and drilling for oil in places where it is difficult to extract (eg North Sea) have been downscaled as it does not make economic sense to make a loss on every barrel of oil uncovered. Around $100 a barrel is required for many countries to ramp up production again. While supply remains depressed, prices will likely continue to rise.

Unrest and fighting in Yemen has yet to affect Saudi Arabia production, however the worry that it could has caused market traders to increase prices.

The GBP (£) has fallen significantly against the dollar ($). Oil is traded in dollars and this means that it is more expensive for the UK to purchase oil.

Should you buy heating oil now, or will prices drop again?

Many analysts are suggesting that the cart is moving before the horse, and that price rises are premature, given global demand levels. However, the recent rises do seem to be getting some traction, and prices for a barrel of crude oil have risen over 50% from the low levels reached in January 2015.

As many heating oil users will know, often purchases are dictated by necessity with heating oil levels in your tank running low, and even during the summer months you may have a requirement for heating at one stage or another due to the often promised UK summer heatwave not arriving!

We always recommend you stick to your budget when ordering heating oil, but with no real signs that heating oil prices may return to $45 a barrel, if you are thinking of putting in a larger order than normal, summer 2015 may be as good as prices get in the foreseeable future!