Cheaper Oil for Fuel?

benood

Is some of the reason for the price increase of heating oil this year due to the fact that until 1 Jan it used to be the same stuff as aviation kerosine but now (due to an EU directive) has to be sepearately blended as <1% sulphur?

Anyone know the answer?

annetteo_2

Just wondering were you got that price for oil as I also live in northern ireland

TechTeacher

An obvious comment but if you can coordinate your oil requirement with neighbours, particularly now with that summer fill up you can cut at least another 2p off a litre. There is a community in Aberdeenshire that has gone further and 40 plus oil users negotiate their oil deliveries and are saving even more. Again negotiate your annual boiler servicing.

king100

oap wrote: »

Someone I know who says they know someone 'in the know' says the reduction is not yet being passed on, so we wait!!

It solely depends on how the oil company price their oil.

Example

Oil company A buys 1 million litres every Monday.

On Monday they buy 1 million litres @100 ppl. But the price on Tue Wed Thur and Friday falls by 2ppl.

What should he do as he has bought at 100ppl yet the true cost is 98ppl. If she sells at 98ppl he is losing 2ppl. So he will sell it at 100ppl so not to lose money.

The same would account if there is a price rise he has stock that is cheaper than what you can buy it on that day for.

Thats one way that oil companies buy. The other is this method.

Oil Company B buys 1 million litres every Monday.

Again a drop in price 3 days in a row. The actual price that you would get the oil for is the cost to replace the stock, not the actual price that was paid for.



This is how you will find sudden huge differences in prices if you ring round.

My opinion is to look online for buying groups/syndicates.

EcoLady_2

Came across this by accident whilst looking for something else! A friend of mine lives in Suffolk and has two oil boilers. He is delighted with a fuel treatment unit which he put on each boiler and reckons he is saving about 25%. Don't have oil heating myself but can find out more if you wish.

nesssie1702

I checked the price of oil here on the Isle of Lewis yesterday and a litre of kerosene is 61.77p + VAT. At least it's come down a bit

andycharger

Hi there,
One thing Boilerjuice offer is discounts for people buying together. Thats great if they gave you the ability to communicate with other residents in your post code area but they dont. I wrote to them ages ago asking them for a Forum type facility but they said they were not looking into that at the moment. Why not? Surely if they are all for bringing the price down ,they would welcome that!

Anyway, enough of my ranting. Is anyone on here a Boilerjuice user? If so, Im thinking about setting up our own community forum so we can email all people in our post code areas that are members and co-ordinate a group buy. I for one cannot normally afford a chance buy of 500 litres of oil at the drop of a hat so would be better to arrange it with other locals.

Anyone out there up for this idea?

Please message me or reply on here if you are interested.

Their email claims 46% get a discount on group buy weekends. Yet ive bought from them 6 times and never had a discount!

benood

I looked at boilerjuice a while ago but I found I could get better prices by just phoning round the local suppliers.

jhspjhsp

Boilerjuice were the cheapest for me (Cambridgeshire) but I went with a small local supplier who were only a fraction more and could deliver much sooner. The problem with group buying is that the discounts aren't really big enough for the hassle involved. The nice thing about boilerjuice is that you don't have to co-ordinate all your neighbours. If it happens that a few others in your area are using them, it'll shave a few pence off the price. If they aren't, you can go elsewhere.

What we really need is a proper commodities market for the general public and small traders. We place legally binding offers to buy a certain amount of oil at a certain price. The offers expire at a deadline of our choosing. Then, oil companies can accept offers that work for them - e.g. a bigger order at a lower price, a lower price order that's on their way home, a high priced order that expires tomorrow (e.g. a punter who has run out of fuel). Meanwhile, oil sellers do the same - posting offers to sell oil at various prices, with various minimum quantities, date ranges etc.

This isn't rocket science - betfair is an example of an online market exchange - although they are letting people buy and sell bets in sports events, which is a much more complicated thing than litres of kerosene.

dougk_2

I can only conclude the same as benood.

Boiler Juice does not gibve you the best prices available - why?
Well its simple I guess that they get comission from the suppliers. I have found the same supplier 1.5p litre cheaper if you go direct. Doesn't sound much but when buying 2000 litres + VAT on top its over £30 extra.

Also its worth noting the "news" on boilerjuice is always negative (eg prices going up) to encourage you to buy now. I posted this on the have your say forum on their site and it was deleted along with some other peoples posts.

My tip is get a quote from boiler juice and then go to your suppliers and get the price down, knowing that it will be at least 1p a litre cheaper than the price quoted.

BTW why are we being conned - despite the oil price being the same as last march we are paying 6 or 7p a litre more still for heating oil.