Domestic Heating Oil Prices

Find out how to reduce your heating oil bill and avoid fuel poverty! We explore how to make it last longer, and also how to pay less: understand the latest heating oil price trends; get tips on energy efficiency; and get a decent service at a reasonable price.

The price of 28-second Kerosene, or home heating oil as it is more commonly known, can vary enormously. Sometimes you will pay more for a rapid service, but you should usually save money by shopping around.

You should read our research article, Who are you buying your domestic heating oil from? as it gives details about how uncompetitive the retail buying market appears to be. Also read about Impartial voices on heating oil for perspectives on who to trust for independent oil buying advice.

When you do buy direct from a heating oil supplier, beware of the hidden credit charge they may slip in to the invoice!

A bit of history

In the UK, historical oil prices for home heating oil stood at 20-30p/L for many years, but a supply squeeze and unprecedented global demand sent the price to 55-65p/L over the Summer of 2008, dropping at the end of the year to under 40p/L. At the end of 2009 it was steady at around 38p/L.

The bad weather at the beginning of 2010 caused an oil price surge to 40-50p/L, and for a few weeks after that it settled back down to the 37-44p/L region. During icy and snowy weather, oil delivery companies needed snow-bound home-owners to clear their access routes, as the drivers refuse to attempt delivery if they fear getting stuck in drifts or unable to get traction on icy surfaces. If you have icy conditions again, use your common sense to make sure that they can get through, and you should get your oil!

Global oil pressures are reasonably steady, and with crude at between $80 and $90 per barrel for the last few months of 2010 we saw domestic prices of 41-45p/L - up until December when it sky-rocketed to 70p or more and with unpredictable delivery dates. The summer season eased heating oil prices, but not much below 40p/L. As the cooler autumn months rolled in, more people's minds turn to securing their winter tankful, and sure enough prices meandered up to 60p/L.

The current situation

The nation has experienced a reasonably mild Christmas period, so January oil prices are heading back down very slowly. If you are starting to run short then it's worth getting a few quotes in now and maybe going for a half-fill if you can. If you can wait, it's quite likely that prices will continue to drift down to around 55p/L over the next several weeks - although the odd cold snap will probably create short-term spikes.

It really is amazing how much the price (both crude and home heating oil) can fluctuate; from its $147/barrel peak in 2007, crude is now under $90/barrel, but has also fallen as far as $35! Now that crude has settled at around the $85 mark, you should in theory expect the domestic rate to be around 40p/L. The biggest influence on the domestic price of oil will be demand pressures, and cold weather typically pushes prices above 50p/L - well above in some places.

You can keep up to date on Facebook, at the Heating Oil page.

Heating Oil Consumption

In this climate of ever-increasing prices, the issue is not so much where to buy your oil, but how to cut your consumption. Here is a summary of your options:

Invest in home insulation (such as wall and roof insulation, or double glazing)
Invest in a new boiler
Invest in solar water heating for hot water
Install a wood-burning stove for heating
Consider money-saving green options to reduce oil consumption (such as reducing car journeys, or avoiding the purchase of cheap plastic products). You need to spread the word to friends and family!
Try and offset the much higher cost of filling your oil tank, by investing in high-yield oil stocks.