More and more households in the UK rely on their own oil supplies to fuel their homes; an educated estimate suggests 2.5m properties do so, some through choice and the majority through necessity as they’re unconnected to a regular gas supply network.
There’s no denying that oil is an expensive commodity with global prices creeping ever upwards. This is scary enough at the petrol pump when filling up your car, but when you’re living in a rural area and reliant on heating oil to keep you warm through the long winter months.
As with all financial transactions, bulk buying provides economies of scale so it seems sensible that communities are clubbing together to use their collective bargaining power to pit oil companies against each other, challenging them to lower their prices and become their preferred supplier.
With roads that are tricky to navigate in a huge tanker, oil companies can attach premiums to rural deliveries escalating the price beyond reasonable and affordable levels. With full tankers guzzling fuel at 8 miles to the gallon, fewer deliveries mean lower costs, and consumer-cooperatives are seeing approximately 5-10% savings for members.
Following a pilot scheme in Oxfordshire, syndicates are now springing up across the UK, driving down the costs and benefiting local areas which will in turn creates a knock on effect for local businesses, as people increase their disposable income.
A village of 250 households will generally place an order for around 100,000 litres of fuel, which could collectively save them well over £3,000. Even with a small admin fee of around £20 to join the group that represents a significant reduction.
Schemes are open to anyone who can add to the influence of the group, which means high consumption community buildings, schools and churches are particularly important if they want to get the best price.
Cheap heating oil is just one of the benefits of this people power; managing your own domestic oil supplies can be a real time-sapper, especially if you shop around every time to find the most cost efficient supplier. And groups are less likely to have to worry about minimum orders, as more and more people join the buying circle, the average volume increases and prices plummet.
So residents are happy, communities are happy, environmentalists are happy and so are the heating oil suppliers. Everyone wins, and all it takes is a little organisation.







Sorry Mark, buty I cannot agree with you entirely on this. The only problem that I see with this scheme is that every householder, organisation or business that pays a fee is paying upfront money to “middlemen” for doing very little apart from feathering their own nests. What safeguards are there? Have the officials been investigated? Bet not.
Let me explain, a householder pays the £20.00 which is 2000 pence. The average heating oil consumption per annum is about 2000-2200 litres. Oh my, oh my! why spend the £20 with this organisation when you could put the £20 to negotiating a price down with your supplier ( same difference). The clever bit about is the “community county” gets your money irrespective of whether you the customer buys or not through the group.
Sorry, not for me and I discourage this sort of blatant attempt to reduce prices by having customers part with money up front. What a con!
Thanks for your comment, David.
Of course individuals should weigh up the benefits of any scheme before joining, but if doing so will save them money above the cost of participating, why not?! Surely most people would agree that a “blatant attempt to reduce prices” is actually a good thing – by not paying up front, consumers will always pay more in the long run, so I fail to see the merits of your argument unfortunately.
David,
I think there are some do-gooders ot there trying their best for the community and its people – especially rural areas. They are to be commended for their efforts.
BUT – the unfortunate side of this is for every good person, there any several trying to make a buck for themselves and this can get out of sync very quickly. For example, using the community group name, I was approached to join a so called “buying group” – yes with a £20 up front payment. They were even giving 50% of “profit” to the local parish fund to help with community activities. Like you David, I’m a bit of a sceptic and did some digging around. The individual running the “group buying scheme” was not appointed by anyone from the community ! Also, he had told me that he had been doing this for over a year – then the local treasurer in our village told me he had never received or been promised any funds from this person but he had been aware that a scheme existed.
Needless to say, I quickly pulled away from being involved. I dont want to mention names as it is a small area and everyone knows eachother and they will know me. The scheme quickly dried up and we mostly buy from our local distributor who seems to treat us fair.
I operate a buying gorpu of sorts in Scotland. Does valueoils offer this as an option ?
Hi Mr JJohnston,
If you are managing a buying Group for Home Heating Oil, ValueOils.com can offer you a very efficient option and of course the all important cheap price. If you send an e-mail to us on Sales@valueoils.com when your group wishes to buy their heating oil, we can provide you with the competitive price and let you know how our group buying system operates.
kind regards
Donall
I would be very interested in saving some money by joining a large community group. I live in a semi-rural area some 10 miles from Belfast City.
The problems I foresee are somebody not paying their money on any given proposed purchase and everyone else having to wait on that person. Or as Joshua has eluded to; self-appointed do-gooders (or worse) siphoning off a percentage of the savings to local community organisations like churches which I particularly detest since the churches in my county have a poor history with the money-tree scams.
I’m unsure how they would do this though as surely there would be no money ‘left-over’ as each member should only be paying for their own set amount of oil?
Maybe someone who has been involved in a group can explain the process briefly for me and others.
Thanks,
Ivan