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.
When pricing heating oil for our customers we need to take into consideration the price of petrol and diesel to fuel our delivery vehicles. Therefore, we can offer you more competitive rates when you select our economy delivery option. Planning and ordering your fuel on the economy 10 working day delivery window, 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.
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 oil.
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 oil.
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.
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.
To get a new quote for heating oil and see how much you can save on your next order, click here.
