There are approximately 1.6m homes in the UK that heat their homes using heating oil. Many will be overpaying for their oil because there is no regulator to check for transparency or fairness for heating oil prices in the UK.
Factors that impact price
The kerosene that is burnt to heat some homes is refined from crude oil. Therefore, the prices of heating oil costs are related to crude oil prices.
Crude oil prices
Supply and demand affects heating oil prices, like anything else. Heating oil is also needed for running cars and airplanes. The recession has meant reduced expenditure on holidays, cars and petrol. The lower demand for fuel should theoretically reduce costs. However crude oil prices are affected by worldwide supply and demand not just in the UK.
Crude oil is sold in American dollars, therefore, a weak pound equates to buying less oil for your money. Political unrest and extreme weather conditions can push up crude oil prices.
Key tips for keeping heating oil prices down
You can reduce your heating oil costs by:
- Comparing heating oil prices and finding the best possible deal
- You could invest in a bigger tank and stock up on heating oil in the summer when costs are normally lower. Do not wait till the last moment in the winter when prices and demand are high.
- You could buy in a group and see if the supplier will give you all better rates.
- Insulate your home. Governmental grants are available for cavity wall and loft insulation so that you retain heat in your home and use less fuel. The Energy Saving Trust website tells you what is available.
- You can make energy savings by just turning your thermostat down or putting a timer on your heating system.