Why has the UK seen higher domestic oil prices over the past number of years?

Over the past number of years heating oil prices have risen significantly in the UK, the main instigating factor being the wars in Iraq and Afghanistan. At Value Oils we watch heating oil prices on a daily basis and are often asked by our customers what factors are affecting domestic oil prices and kerosene prices. What has caused oil prices to rise over the last number of years? A number of additional factors influence heating oil prices from Government Policies, the exchange rate and other world events (amongst many other reasons). The price of oil has in fact been declining significantly for the past 18 months although political unrest in Ukraine and the Middle East has seen oil prices rise sharply (often rising around 3 pence per litre) in the short term.

What other factors influence kerosene prices?

Supply and demand is a key factor which drives oil prices, especially aviation demand, demand in the Far East and USA as well as stocks held in the USA. On average, heating oil users in the UK purchase between 2,000 to 5,000 liters of heating oil (kerosene) annually to keep their home warm. Going from year to year we have seen differences of up to 30% in the amount of oil which customers use to heat their homes annually, mainly down to the mild winter in 2013/14, although many customers have also began to implement various energy efficiency measures in their home to reduce their heating oil usage.

Interest rates also have some effect on pricing however, the impact from interest rates normally tends to be fairly minimal. They could affect oil prices short term, especially if the Bank of England was to announce an increase in interest rate, but it is unlikely that this would affect prices over the longer term.

How to keep your heating oil bills down

There are a number of ways which you can help keep your heating bills down, some don’t cost much while others can be extremely expensive and you must weigh up the cost vs. saving. Some low cost methods include buying insulated curtains, draft excluders, chimney balloons etc. While more expensive options include replacing an old boiler with a new condensing boiler, having walls insulated and installing double glazing. As mentioned earlier, the price of oil has been declining for the last 18 months so now may be a good time to fill the tank. Keep in mind though that prices may continue to fall. Also bear in mind that the more you order the lower the pence per litre rate generally tends to be, so if you can afford to purchase a large quantity take advantage of these savings.

We provide a wide range of services from boiler cleaning to oil spill clean-up and gas boiler servicing. We can easily help you with all your oil needs by visiting us at: http://www.valueoils.com