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Posted: 19/07/2018

Heating Oil Prices Explained

Heating Oil Prices Explained

1. Global, National & Local Supply

Oil supply can be affected by anything from local weather conditions to worldwide political conflicts.

When global oil production levels fall below global demand levels, a shortage in supply is created, forcing the up the cost of importing heating oil up. As the importer has to pay more the increased cost is forced along the supply chain meaning your local heating oil supplier will have to increase their prices too.

2. Crude Oil Prices

The amount of crude oil produced by members of OPEC (Organisation of the Petroleum Exporting Countries) has a direct effect on global crude oil prices. As heating oil or 'kerosene' is refined from crude oil as the price of crude oil rises so will the cost of kerosene.

3. Weather Events

Heating oil prices can increase dramatically during extreme weather events. Severe cold weather snaps and winter storms in the UK, or abroad, have a direct effect on demand and the price of heating oil will typically increase as people stock up and use more fuel during these times.

Delivery and access can also prove much trickier during adverse weather conditions which can also increase the overall cost of your home fuel delivery.

4. Changing Seasons

Demand for heating oil in the UK is greatest between the months of October to March as seasonal temperatures drop and the need to keep our homes warmer increases.  The warmer weather of Spring and Summer sees a significant drop in the demand for fuel.

Timing your purchases to get the best heating oil price in line with the change in seasons can save you money on your home heating bills.

5. Distribution & Delivery Costs

Heating oil delivery costs will vary depending on how far your property is located from your nearest depot and the ease of accessing the area in which you are based. Goff Petroleum have a range of delivery vehicles to suit most delivery situations. 

At Goff our team constantly check prices to ensure we're giving you the best price possible for your home heating oil.

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