Should I order heating oil now or in two months?

JayLou1

Help?! We have oil fired central heating and hot water, so no Government price cap! When I ordered my last lot of oil in October last year it was 62p a litre, now its £1.20 a litre and rising. I have to order a minimum of 500 litres, £600!!! I can’t only just about afford that as a one off cost. However, in addition I can’t find a company where I pay the price of the oil when I order it, they’re all saying I have to pay the price on delivery, which would be in three weeks… at which point it could have skyrocketed even more and I’m in the position where I can’t afford to pay. I have 300 litres left which should last me three months. 

Do I wait a couple of months to order and hope prices come down, or will the price just keep going up and up? 

BUFF

Ultimately the decision is up to you but in 3 months demand should be down (out of winter heating) so all other things being equal you would normally expect a drop in price. But the way that things are atm how good is your crystal ball?

Thrugelmir

Doesn't the price of heating oil fall away in summer as demand subsides? 

RG2015

Thrugelmir said:

Doesn't the price of heating oil fall away in summer as demand subsides? 

If only things were that simple.

Boilerjuice has a 4 year chart on its website, and even excluding the lockdown oil price plunge and the current surge, prices do not necessarily fall off in the summer months.

comeandgo

Thrugelmir said:

Doesn't the price of heating oil fall away in summer as demand subsides? 

Not where we are

strawb_shortcake

Boiler Juice for my area has fallen by 18ppl in 8 and 30ppl in 24  hours.
Personally I'd hold off, put some extra money aside between now and when you do order in case prices remain high. 

dunstonh

The tail end of panic buying is already seeing the prices fall. Back under 100ppl earlier today.   Hopefully, a little bit longer and that will be priced out.

However, in addition I can’t find a company where I pay the price of the oil when I order it, they’re all saying I have to pay the price on delivery, which would be in three weeks

Check your closest independents.   They may be focusing on existing customers only at the moment but they are typically next day to 3 days depending on how far away you are.

GrumpyDil

And oddly on boilerjuice my normal delivery quote is vastly higher than the express delivery. 

canaldumidi

Thrugelmir said:

Doesn't the price of heating oil fall away in summer as demand subsides? 

I've been hearing this for years, but at best the difference I've noticed has been marginal. There are too many other factors involved.

400ixl

Winter peaks to summer lows in the few years before the pandemic were around 10-15% typically, so there but not extreme.

Opec countries have stated they will increase supply over the next few months to fill the Russia void which hopefully will help increase supply and bring down costs. They could turn the taps on much more quickly but don't appear to wish to do so.

Hopefully the panic buying will subside which will also help to bring the price down. No one can tell you what will happen in the future, if I were in your position I would hold on for the moment.