Average UK heating oil prices 19% lower than this time last year.
Average heating oil prices have continued to fall in recent weeks and are the lowest seen since November 2010.
The mild winter and relatively warm spring in the UK has reduced demand for heating oil significantly over the last few months and this has resulted in prices hitting lows not seen for nearly three-and-a-half years. A typical heating oil user could, on average, be paying in region of 12 pence per litre less than this time last year – that’s a 19% saving equating to £120* on a 1000 litre order of heating oil.
Heating oil is certainly bucking the energy prices trend at the moment whilst other major sources of fuel continue an inexorable rise upwards. Towards the end of 2014 the Big Six announced price increases of between 6% and 10.8% for gas and electricity and it was only in February this year that OFTEC, the Oil Firing Technical Association announced that heating oil was the only fuel that has actually dropped in price in the last three years.
Lower Heating Oil Prices May Not Last
How long the low prices will continue is difficult to predict. Paul Ward, managing director of Boiler juice said: “Lower prices are always good news for our customers and to be able to offer a 19% saving on average heating oil prices from this time last year is fantastic. Typically, as we move into the warmer months prices do drop, but with such historic lows it is difficult to see these prices being maintained in the longer term. It takes very little to spook the markets and cause a price rise. Last summer was a classic example when the Syrian crisis resulted in price spike in late August.”
With growing unease about the intentions of Russia over Ukraine, continuing problems with oil supply from Libya and more positive economic growth forecasts for most of Europe that will increase demand, heating oil prices may not stay low for very long and, whilst the general consensus in the oil industry remains that prices will be below 2013 figures, it is unlikely we will see prices at 2010 levels continuing.
BoilerJuice are urging customers to top up their tanks and take advantage of the opportunity to make significant savings on their annual energy bill.
* based on UK average heating oil prices from participating BoilerJuice suppliers on 14th April 2013 and 2014.