![]() ![]() The fierce competition between local Northern Ireland Oil suppliers actually drove end user prices lower than usual as they battled for market share. During the wet and stormy but relatively mild winter of 2014//16, prices actually fell in the UK. Indeed, some more inaccessible places such as the Highland of Scotland can only receive deliveries during non-winter months and must buy fuel during summer. This can be an ideal time to buy and to stock up for winter. Local supplier competition is always fiercest during the summer months when local demand collapses due to warm weather. The high cost of road diesel can impact upon the delivered price of fuel. Rural areas can often be slightly more expensive for fuel than urban areas, but not always. ![]() The cost of product collection either ex-rack from the terminal or in haulage to the supplier’s depot for storage and then the cost of delivery to your home will impact upon the price paid. Local supply prices are very interesting and will generally vary depending on where a supplier is located in relation to a refinery or major storage facilities. Similarly, kerosene is used in producing ultra-low sulphur diesel and again when demand for ULSD is high, this impacts on kerosene demand. Therefore, if the air travel industry is buoyant, demand for kerosene remains high. In addition, kerosene which is used widely in the UK for heating oil, is also virtually the same product used to fuel aircraft. At a local level, the price can vary depending upon the number of suppliers concentrated in the area and their access to wholesale stock or indeed how effectively they purchase their fuel oil on contract. weather conditions, the price can temporarily rise, this issue is particularly prevalent in Northern Ireland where oil is shipped in and storms can prevent the large oil tankers from docking. If there is a regional issue hindering supply e.g. The national supply and demand for kerosene will impact the price. Recent examples include Libya and previously the war in Iraq which both witnessed oil prices spike and drop. Decreases also follow when political circumstances settle down and production resumes. The same could also be said for other large producers including the USA and Russia. Geopolitical factors and civil unrest in OPEC countries (or neighbouring countries) in the Middle East, Southeast Asia, North and West Africa, and South America, can often lead to concerns over supply and result in price increases. ![]() If there is a global production decrease or shortage in supply and the level of demand remains consistent, the price in the UK is likely to increase, while the reverse is also true. The global supply of kerosene and the price of crude oil will impact on the price of heating oil. This falls into 3 categories which can all influence heating oil prices: 1. This will normally only affect prices at a local level and only in the short term. Extreme weather or unseasonal or freak weather can also significantly influence the logistical costs of distribution for oil suppliers. WeatherĪs the temperature drops and weather conditions worsen, the demand for oil will increase locally as customers will turn their heating on for longer periods. In contrast, the summer months of June and July will usually provide the lowest rates, but will not necessarily be the case. Winter months are typically more expensive than the summer due to the rise in demand across Europe & North America. Here are some of the key factors to consider when you buy heating oil: Season The popular theory of UK consumers, that weather is the main (or only) influence on heating oil prices is incorrect. Some of these can be predicted to a degree, while other geopolitical factors are often hard to predict. monitors heating oil price movements on a daily basis and note the factors which often play a key role in influencing prices. What factors affect the price of heating oil? Heating oil prices during 2022 have been extremely volatile due to the Russian invasion of Ukraine and remain higher than they had been in previous years. ![]() The UK average 500 litre rate can be viewed in the graph above. ![]()
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