As the price of crude oil continues to plummet, we take a look at how declines have lead to an incredible 5 year low for home heating oil users.
UK Heating Oil Price Trends in 2014
Heating oil prices continued to decrease throughout 2014, culminating in a 5 year price low towards the end of December. Declines in the barrel price of brent, combined with a surplus of oil and mild weather conditions saw our average UK price fall in line with the crude market, dropping 23.44% year on year (that’s an average saving of £70.45 per 500 litre order!).
Comparison: Average Petrol, Kerosene and Crude Oil Prices for 2014
Comparison: Percentage Change for Oil Prices in 2014
Heating Oil ‘Cheapest’ Fuel for Off Grid Homes
Following fantastic prices over autumn, OFTEC released a report in November 2014 naming heating oil as the cheapest fuel for off grid homes.
The article stated that, according to the Sutherland Tables, an independent source on domestic heating prices in the UK, homeowners using heating oil paid on average, 12% less in 2014 than they had over the past four years, with houses running on heating oil costing homeowners roughly 40% less than LPG and 26% less than electricity-powered systems.
Jeremy Hawksley, director general of OFTEC, stated: “With this in mind, these latest figures should provide much comfort to off-gas grid households using oil who can be assured they are choosing the least expensive fuel option. In fact heating is the only fuel to have fallen in price over the past three years.”
What Affects UK Heating Oil Prices?
Although changes in the crude oil market have a large influence on Kerosene prices, there are several factors that contribute to fluctuations in home heating oil prices across the UK.
Sutherland Tables – http://www.sutherlandtables.co.uk/
Petrol Prices – http://www.petrolprices.com/the-price-of-fuel.html
Crude Oil Prices – http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=RBRTE&f=M