Cheaper Oil for Fuel?

oap · 19 January 2011 at 12:43AM

ps can anyone tell me who makes the profit and sets the high prices, the people we buy from, or the people they buy from?
Somebody is making a lot of money!! oap:(

ulsterman · 19 January 2011 at 12:23PM

Your fuel distributor will set their own prices - though obviously what they pay for the fuel strongly influences what you pay. As a general rule in Great Britain, end distributors make more money from each litre of fuel sold than their suppliers.

So it is ultimately up to your distributor how little or how much they add on to the cost of the fuel... so that before Christmas whilst some distributors were quoting c.60ppl, others were quoting 200ppl!

oap · 20 January 2011 at 10:28AM

Suppose you cannot blame them, but it does not seem fair at all when we HAVE to purchase the oil, or be cold. We were thinking of a wood burning stove and opening up our chimney again, but at 75 and almost 80 do not want to go back to clearing out grates and carrying wood and stuff, so we cannot do that, We are in their hands,

We were told last October by one supplier when the oil was not as high, but high, that it costs them so much a litre just to bring the oil to us, plus overheads etc., but I still feel we are being ripped off.

It is about time the government stepped in and controlled oil like they do electricity and gas, that might help, or better still take off the VAT. Will send Mr Cameron another e mail!!

Cheers and thanks for the info, oap

home-heating-oil · 21 January 2011 at 11:41AM

I did some research on this topic yesterday having read the Inflation news on the Independent. The Consumer Price Index (CPI) shows an increase on heating oil of 48.7% in December so I checked the Brent crude price for the same period, we use Brent blend for heating oil, and the price did increase on the Crude price but only by 8.14%. Hence the remaining 40.56% is added profit and as reported,dcc /boilerjuice, the biggest culprits are the comparison websites extending their profit.

Of course I am not suggesting that all the 40.56% is pure profits as the 8% rise in crude also added to transportation costs and the comparison websites needed to recoup the cost of being cheapest during the summer months but even so it was unnecessary to be quite so greedy. Maybe the outcome will be a regulated industry so a good result longer term.

FYI the full article is at http://heating-oil.blogs-uk.co.uk/cpi-results-prove-heating-oil-profiteering/

benood · 21 January 2011 at 10:58PM

home-heating-oil wrote: »

I did some research on this topic yesterday having read the Inflation news on the Independent. The Consumer Price Index (CPI) shows an increase on heating oil of 48.7% in December so I checked the Brent crude price for the same period, we use Brent blend for heating oil, and the price did increase on the Crude price but only by 8.14%. Hence the remaining 40.56% is added profit and as reported,dcc /boilerjuice, the biggest culprits are the comparison websites extending their profit.

Of course I am not suggesting that all the 40.56% is pure profits as the 8% rise in crude also added to transportation costs and the comparison websites needed to recoup the cost of being cheapest during the summer months but even so it was unnecessary to be quite so greedy. Maybe the outcome will be a regulated industry so a good result longer term.

FYI the full article is at http://heating-oil.blogs-uk.co.uk/cpi-results-prove-heating-oil-profiteering/

I'm not sure that in general brent crude was quite as much affected by the coldest december for 100 years. I don't believe that the soviet union did a very efficient job of extracting oil when they had 5 year plans running.

fyr · 22 January 2011 at 9:54AM

See

http://www.dailymail.co.uk/news/article-1349490/Heating-oil-firms-face-inquiry-profiteering-prices-soared-50-winter-cold-snap.html

oap · 22 January 2011 at 12:38PM

Well we are very relieved to read this article, am sending yet another e mail to David Cameron's office with a link to this page and the Mail page, somebody may read it!!!! cheers oap

fyr · 23 January 2011 at 9:43AM

Useful if you could post address for Cameron's office, so we could follow suit.

He comes from village I live in, and his Mother & Brother still reside in Peasemore....however, doubt whether either ever have to worry about such costs!

On the investigation, I hope that regulatory authorities also consider bringing in requirements that non independent price comparison sites like BJ, have to clearly state the prices shown only reflect their subsidiary companies pricing.

Most will assume, as with utility & insurance comparison sites, that they are independent of companies they are showing prices for, and that there is real competition prevailing.

fyr · 23 January 2011 at 9:44AM

oap wrote: »

Well we are very relieved to read this article, am sending yet another e mail to David Cameron's office with a link to this page and the Mail page, somebody may read it!!!! cheers oap

That would assume Cameron & his cadre are Tory's; they're not in my view, and more inclined to read the Indie or even The Guardian.

oap · 23 January 2011 at 11:47AM

Well we can but try, maybe if every single person who has to use oil for their heating wrote in, something might happen!

It annoys us that we cannot get better value electricity as we do not qualify for duel fuel reduction therefore getting cold weather payments. We have no choice where we live, it is electric oil or lpg.

cheers oap

Cheaper Oil for Fuel?

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