Consumers in Northern Ireland who use oil for heating have been warned to get ready for heating oil prices to rise this autumn and winter. Home heating oil prices have been reaching all-year highs recently, and this follows a 40% rise in prices in just the last six months. This means that the average yearly bill for a three-bedroomed home is likely to rise by £175.
The boss of a price-comparison website spoke to the Belfast Telegraph and told them that the price of putting 900 litres into a tank had previously gone down to not much over £220. However, the current cost would be nearly £320. He blamed the heating oil price rises on the fall in sterling against the dollar, because oil is always priced in dollars.
From this point on, it’s hard to say which way this trend will go. If the pound strengthens, then prices will start to fall back. However, there is very large variation in heating oil prices, and the Belfast Telegraph reports that when it surveyed companies supplying home heating oil, their prices for the same amount varied by over £40.
Consumers will be wondering how they can reduce their bills, and there are a couple of points to bear in mind. Firstly, try to cut down on the number of deliveries you have each year. That probably means emptying your tank and then filling it right up.
Next, try to pay by debit card and not credit card – many companies pass on the surcharges from the credit card providers.
And it may make sense to compare yourself to gas consumers – Phoenix Natural Gas is still more expensive than heating oil. And this summer, petrol prices rose for the first time in a very long time. So heating oil is not necessarily out of step with the market.
There are 1.3 million UK homes that use oil-based heating to warm their homes. Some feel that heating oil prices get little political attention because the user base is small. Heating oil costs tend to move with the seasons, so it makes sense to buy soon before winter sets in. Use our quick quote tool to see the savings you could make.
