Heating Oil Buying Groups

What is a Heating Oil buying group?

A heating oil buying group is where a group of properties aim to buy their heating oil at the same time. By placing their orders together, the aim is to secure the oil at a reduced price from the supplier.

Heating oil buying groups can also known as oil syndicates, buying clubs or oil clubs.

Generally speaking, the more oil you order, the lower the price per litre will be. There are other benefits, though there are also some common problems, which you should be aware of.

Key Oil Buying Group Information

Listed below are some of the benefits of joining an oil buying group:

Fill your Tank for Less: As you purchase larger volumes of oil the price per litre should fall. If a group of people decide to share a large delivery of oil between them; they would expect to pay less than filling their own tank individually. Delivery costs may also be cheaper. If a delivery driver only has to visit one area or street, to complete several orders, diesel costs will be lower and time will be saved. Small word of caution on the headline grabbing savings, they may not turn as great as promised.

Be Part of Something: Joining an Oil Group may help make you a visible member of your community. Community cohesion is important to lots of people and this could be a way of helping to maintain or improve that. You may make new friends or strengthen existing ties in your neighbourhood.

It’s Good to be Green: Lowering carbon dioxide (CO2) levels in the Earth’s atmosphere has long been on scientists’ agenda. However it is a relatively recent trend for people to take matters into their own hands and, no matter how small, contribute to the health of the world. Joining an oil club means there could be fewer vehicles on the roads delivering small amounts to individuals. Fewer vehicles on the roads will result in less CO2 being released.

However, there are also a number of negatives which arise from being tied in to a buying group.

Organising the group: Difficulties may arise when it comes to the running of the oil group. It is important to have a competent administrator in the group for key decisions. Problems will appear if the wrong decisions are made. Many groups also charge a joining or administration fee, which will wipe out most of the savings.

Ordering Oil at the Right Time: Oil prices vary sharply at different times in the year. When ordering a bulk amount it would not be advisable to order when the prices are at a premium. Also, if you are running low on fuel, and the buying group are not placing an order for a few weeks, this can cause issues, especially if you run out of oil.

Communication: For the group to run smoothly, they will have to communicate well, even more so if it is a large group. It is important that everyone knows the delivery date and leaves access available for the supplier, as if just one property can't be accessed, the CO2 savings will be reduced as the truck will have to return on another date.

Data Protection: Often, group organisers will not hold your data securely, or be aware of the legislation which they should be adhering to.

Oil Distributors: During periods of peak demand, many oil distributors will give priority to their individual loyal customers who buy regularly at normal prices. Many distributors will not even quote buying groups at certain times of the year or will actually surcharge them as they are only being used if, and when it suits the buying group.

Buying Group Leader: There have been examples of the leader getting a “special or preferential rate” for their own property if and when a bulk buying group order is placed with a distributor. There are also examples of leaders actually charging members of the group for their services to the buying group.

Regionalisation: The success of buying groups also depends upon the area of the UK in which they operate. The most successful buying groups operate in Southern England where prices seem to be higher than UK averages. The least successful buying groups tend to operate in Northern Ireland where heating oil prices are most competitive in the UK. Often if you would normally order 2,000 litres, you may end up paying more as part of the group by subsidising the smaller orders.

If you are part of a buying group, why not get a quote from us today - we give you our best price every day of the week and don't charge you for using your personal credit card. You may be able to make significant savings even compared to a buying groups price. If you have any queries, please get in touch with us and we'll be happy to help.