Discretionary Fund for Heating Oil and Bulk LPG

kassy64

annabanana82 said:

wwally said:

QrizB said:

We'll have to wait and see, but hypothetically they could decide to cap bulk oil and LPG prices at the same level as mains gas.

Eg. if gas is capped at 10p/kWh, oil and LPG could be capped at the same price.

This would mean a price cap of around 100p a litre for oil, and 70p a litre for LPG.

Those aren't particularly attractive cap figures! Market rate for me is below both at the moment (c 95p and 55p). They did say the saving would be equivalent for these fuels.

I looked back at my last orders 

Sept 21 - 750l £364
Sept 22 - 750l £680

Capping at £1ppl would be a further increase, yet I guess that's not so fundamentally different to electric and gas.

Are those orders for oil or lpg. I suspect any cap will be well above what I currently pay (until Jan next year anyway) as I’m fixed at 38 ppl for lpg since January 2021. 

kassy64

Based on what I’ve been reading on these forums most users of lpg are re-contracting at about 55ppl give or take so setting the cap rate at around that figure or 60ppl would seem about right. 

Mister_G

I hope not, mine's 38ppl!

strawb_shortcake

kassy64 said:

annabanana82 said:

wwally said:

QrizB said:

We'll have to wait and see, but hypothetically they could decide to cap bulk oil and LPG prices at the same level as mains gas.

Eg. if gas is capped at 10p/kWh, oil and LPG could be capped at the same price.

This would mean a price cap of around 100p a litre for oil, and 70p a litre for LPG.

Those aren't particularly attractive cap figures! Market rate for me is below both at the moment (c 95p and 55p). They did say the saving would be equivalent for these fuels.

I looked back at my last orders 

Sept 21 - 750l £364
Sept 22 - 750l £680

Capping at £1ppl would be a further increase, yet I guess that's not so fundamentally different to electric and gas.

Are those orders for oil or lpg. I suspect any cap will be well above what I currently pay (until Jan next year anyway) as I’m fixed at 38 ppl for lpg since January 2021. 

That's for oil.

kassy64

Mister_G said:

I hope not, mine's 38ppl!

But it would be a cap so if you are fortunate to be in a contract at a lower amount then you can carry on with (I’m same currently 38ppl until Jan next year). The cap would protect those not in contract or who will be in the coming years (most users). 

Ps this is all hypothetical anyway, we shall just have to wait and see !

wwally

My annual usage is:

LPG 1600 litres. Was 41p, then 55p, then 72p. Recontract offered at 82p. Switch supplier to 55p. (ongoing)
Heating oil 2000 litres. Historically 40p. Feb 22 65p. Peak 100p. Now 95p.

So the principle could be that the cap protects us from the excessive price, eg to 20% off the peak. That would be c 80p for oil and 58p for LPG (based on my observed figures).

My worry is that both of these markets seem rather unscrupulous and unregulated, so I have low confidence that the suppliers will not fiddle the numbers to their advantage.

shinytop

kassy64 said:

Based on what I’ve been reading on these forums most users of lpg are re-contracting at about 55ppl give or take so setting the cap rate at around that figure or 60ppl would seem about right. 

EDIT - comment removed I was talking nonsense 

kassy64

shinytop said:

kassy64 said:

Based on what I’ve been reading on these forums most users of lpg are re-contracting at about 55ppl give or take so setting the cap rate at around that figure or 60ppl would seem about right. 

No it wouldn't.  That would make oil substantially cheaper than gas per kWh.  As @QrizB said upthread, £1/litre is about right. We all have to take some of the pain here.    

I can only go by LPG prices as that’s what I use. As I said what would be the point of setting any per litre price cap way high when most are getting 2 year contracts at or around the 55 ppl mark. It would be pointless and no one would get any benefit. I’m sure the government have their top boffins on the case so don’t panic. Anything we say here at present is purely hypothetical anyway. 

shinytop

kassy64 said:

shinytop said:

kassy64 said:

Based on what I’ve been reading on these forums most users of lpg are re-contracting at about 55ppl give or take so setting the cap rate at around that figure or 60ppl would seem about right. 

No it wouldn't.  That would make oil substantially cheaper than gas per kWh.  As @QrizB said upthread, £1/litre is about right. We all have to take some of the pain here.    

I can only go by LPG prices as that’s what I use. As I said what would be the point of setting any per litre price cap way high when most are getting 2 year contracts at or around the 55 ppl mark. It would be pointless and no one would get any benefit. I’m sure the government have their top boffins on the case so don’t panic. Anything we say here at present is purely hypothetical anyway. 

sorry my mistake I thought you were talking about oil but you clearly weren't. 

2Gundogs

I don't understand how this will work for heating oil. I filled my tank just as the price troughed in August, but that was still almost twice the price it had been 12 months before. Do people like me get nothing because we're not buying our oil after the announcement has been made?