Heating oil prices can be affected by several external factors and
fluctuate on a regular basis, often throughout the day. So, what is it that affects
heating oil prices?
Weather conditions can have an impact on the cost of fuel as bad
weather can cause deliveries to take longer. Changes to routes may also be
required if usual roads are inaccessible, which means that there is likely to
be an increase in the petrol/diesel cost to deliver your fuel, along with
increased driver time. The impact of weather not only affects how quickly and
easily we’re able to deliver to you, but also the delivery of fuel into our
depots from the main terminals.
Distribution and Delivery Costs
When pricing heating oil for our customers we need to take into
consideration the price of the petrol and diesel to fuel our delivery vehicles.
Therefore, we can offer you more competitive rates when you select our economy
delivery option. By planning and ordering your fuel on the economy 10 working
day delivery window, this gives us more time to be able to plan a cost
effective and efficient route, grouping deliveries together by area. This way
we use less fuel, and less driver time, and can pass savings on to you by way
of a lower rate. Fuel duty and VAT rates are also a factor we need to consider
- more information on this can be found here.
Supply and Demand
The demand for oil fluctuates throughout the year and can be
affected by both the seasons and the weather. When oil is in high demand, the
price we can purchase it for typically rises as it puts a strain on the
supply. For the likes of kerosene, this
can be common in the cold, winter months, when people are using more heating
Crude Oil Prices and Refining Costs
The price of crude oil can be affected by all the factors
mentioned above. As heating oil is refined from crude oil, any fluctuations in
price, and any changes to refining costs can directly affect the cost of your
The Organisation of the Petroleum Exporting Countries (OPEC)
OPEC is an intergovernmental organisation made up of 15 oil
exporting nations. OPEC’s objective is to stabilise global oil prices and
maintain a regular supply. The group of nations meet on a regular basis to
coordinate policies and any changes made can affect the price of Crude Oil.
Foreign Exchange Rates
As the UK imports oil, any changes in exchange rates can directly
affect the cost.
Conflicts in Oil Producing Countries
The cost of exporting oil can rise if there are conflicts in an
oil producing country. This is because there can be the need for additional
security measures to safely export the oil, which can also mean it takes longer
to export it.
We’re dedicated to offering you competitive heating oil prices,
so our teams always stay up to date with the market.