Heating Oil Prices

JBGXX

This morning i got a quote from our heating oil supplier, price excluding VAT was 109p per litre. I spent 20 minutes comparing prices, went back to accept the quote and the prices had increased to 114p per litre .. How can this continue to happen, for context the price is 100% more expensive than last year..

What are the government doing about it? Oil is not like gas or electricity where you pay monthly, you have to pay upfront and wait 3 weeks to get the cheapest litre price.

Why is nobody talking about this?

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/6683511/heating-oil-prices

It can happen because the market fluctuates based on an international commodity.

The government are probably not doing anything about it, just as they are not really doing anything about other energy costs (mains gas, electricity, diesel, petrol, LPG, solid fuel), any more discussuion there would get political.

Some people are talking about it, most are not. Many oil (and LPG) users are removing their boilers and converting to heat pumps as a solution.

Netexporter

https://forums.moneysavingexpert.com/discussion/6683511/heating-oil-prices

The Government are giving a £9000 grant towards changing from oil/LPG to a heat pump. I'd be looking at that.

QrizB

How can this continue to happen, for context the price is 100% more expensive than last year..

Someone started another war in the Middle East. Oil supplies are disrupted, prices are rising. It's headline news, I'm surprised you haven't seen it!

What are the government doing about it?

What exactly do you expect the government to do? A year ago oil was $60 a barrel, and now it's $110.

https://tradingeconomics.com/commodity/brent-crude-oil.

Tourer

Sure market conditions but heating oil is not that much different from diesel. That has gone up by around 50% when heating oil by over 100%. That surely is the issue. I think the heating oil companies are sure making a killing!

QrizB

Sure market conditions but heating oil is not that much different from diesel. That has gone up by around 50% when heating oil by over 100%. That surely is the issue.

That surely is a thoroughly illogical way to look at the problem.

Back in February I was paying £1.36 for diesel. Fuel duty on diesel is 53p/litre, and VAT is 20%, so I was paying 60p/litre for "diesel" plus 53p/litre duty plus 23p/litre VAT.

According to this thread heating oil was 62p/litre at that time. VAT on heating oil is 5%, so that price was 59p/litre for "oil" plus 3p/litre VAT. So before taxes, heating oil and diesel were essentially the same price.

Today, my local garage wants £2.02 a litre for diesel. That's £1.15/litre for "diesel", 53p/litre for duty and 34p/litre in VAT. Diesel has gone up by 55p/litre.

The original poster in this thread was being asked for £1.14 for a litre of oil. That's £1.09/litre for "oil" and 5p/lite in VAT. Oil has gone up by 50p/litre.

I think the heating oil companies are sure making a killing!

Or you can look at how the prices are made up and see that the ex-tax costs for diesel and heating oil are still practically identical.