Strange that all oil companies locally charge the exact same price.

anotherquestion

Hello folks, 

It comes across to me that its strange that all the oil companies where I live charge the exact same price for oil, yesterday it was £218 across all the companies I checked online, and today it is £223 across the same companies.

Is this anti competitive I wonder and could it be that there is something of a cartel operating?

Just wondering what your views are?

Rodders53

Online pricing and the 'best price please' when calling by phone may be different?
Not all oil suppliers quote online even in this day and age.
Online quoters will run programs to scrape and capture competitor prices so it may seem they 'fix' the cost...  just like Supermarkets do.

Be grateful you get better prices that I do https://homefuelsdirect.co.uk/home/heating-oil-prices/county-armagh vs https://homefuelsdirect.co.uk/home/heating-oil-prices/bedfordshire

My 1000 litre fill was slightly cheaper from my local supplier, than that above figure - but still a lot more than you will be paying.

EDIT NB the linked website price is significantly cheaper than the prices you've found, BUT I have never used that company.  
Head over to the Energy ... heating oil sub forum for more on them, perhaps?

motorguy

anotherquestion said:

Hello folks, 

It comes across to me that its strange that all the oil companies where I live charge the exact same price for oil, yesterday it was £218 across all the companies I checked online, and today it is £223 across the same companies.

Is this anti competitive I wonder and could it be that there is something of a cartel operating?

Just wondering what your views are?

My opinion and understanding is that the market if extremely competitive and as per Rodders response they do track and scrape competitors prices (well the big ones anyway).  

So i think the prices are driven lower rather than being driven higher.

leskerr

Not all the same price here:
https://www.cheapestoil.co.uk/Heating-Oil-NI

Don't forget, there are a limited number of importers, so quite a few suppliers to consumers will be sourcing their fuel from the same places at the same prices.

I have a family connection in the industry, and the "friends and family" rates aren't any better than the best prices at the site I've linked to,

anotherquestion

leskerr said:

Not all the same price here:
https://www.cheapestoil.co.uk/Heating-Oil-NI

Don't forget, there are a limited number of importers, so quite a few suppliers to consumers will be sourcing their fuel from the same places at the same prices.

I have a family connection in the industry, and the "friends and family" rates aren't any better than the best prices at the site I've linked to,

Thanks for all replies, its interesting that you have a family connection to the industry. Usually I order 500 litres and have always being of the opinion  that for the price being charged for this amount at least £40 is straight profit for the delivery company (Nothing wrong in that they have to have a little profit to cover costs etc) Does this amount seem about right?

I usually get about five deliveries of 500 litres per year, and one of the local companies used to knock a pound or two off for me, but then they got their grown up kids to answer the phone and no go with them.

I changed my company, does gives me a little satisfaction though I am loosing maybe a £10 a year they are probably loosing £200 or more, oh  I know they won't be worried about that, but does make me feel better.

 

dsab

I would say their profit would be more along the lines of £10-12 per 500L rather then £40, i.e. roughly 2.5p - 3p per liter. That's similar to the margin a petrol forecourt would have.

qwert_yuiop

Profit is what you’re left with after you’ve covered costs.
Margins on petrol are notoriously tight. A couple of quid profit every time a full tank is bought is nothing great. No wonder they’re all determined to get you to buy a cup of coffee, crisps, anything to make a few pounds more.

qwert_yuiop

By the way, 2500 litres a year seems extreme to me. How much are others buying?

anotherquestion

qwert_yuiop said:

By the way, 2500 litres a year seems extreme to me. How much are others buying?

Well I do think its not bad actually maybe sometimes its on 2000 a year. I do have an old cast iron boiler that I get serviced every year, would maybe save on oil if I got a condenser but would be only entitled to a £500 grant or so, and I do hear that the condenser are not all they are put up to be, that they cant break down often enough, whereas the old cast iron boiler is fairly straight forward, I have changed the burner part maybe 17 years ago, but seems to be working ok at the moment.

The service guy does agree that just letting it run its course till it totally breaks down is the best option and then I will get a condenser.

Rodders53

How big is the storage tank?  
One can typically save about 1p a litre with 900 or 1000 litre orders cf the minimum delivery of 500 that is needed.  Not that easy to do always with (my) 1225 litre tank.

2500 litres use - high? - depends on the size of dwelling and how well insulated and draught-proofed it is surely.

qwert_yuiop

Well of course it does, but what’s the typical consumption on here?