Reducing your heating oil cost

Basics of Heating Oil Cost

Heating Oil cost in the UK generally follows the global oil price. As we saw during lockdown, the global demand dropped therefore the price fell by more than half in April. Overall this has been a great year for consumers with such a low heating oil cost.

The most commonly used heating oil in the UK is Kerosene. Kerosene is also known as kero, heating oil & home heating oil.

Choose the best Purchasing Time

The price you pay is directly affected by the wholesale price, this fluctuates daily and can be unpredictable.

Summer is often a good time to buy your oil as demand for kerosene nationally is lower, you can often get a good price with excellent delivery options. As more people buy in winter due to greater usage, delivery schedules can fill and cause a longer wait for your heating oil. Planning ahead can reduce the chance of having a chilly few days with no heating.

If you become desperate our 20L heating oil (kerosene) drums can top your tank up just enough to get you through a few days.

As the pandemic saw such low prices, many people choose to stock up around April. This means the amount of customers that will require a tank top up in the winter months could create long delivery timOil Tank Dipstickes.

If you can get into a routine of checking your oil tank level, this will certainly ensure you never run out. Most tanks come with a basic gauge, however using a dipstick (a long stick) can also help you gauge how full your tank is. You can get gadgets that automatically read your tank level, these can be more expensive but the initial outlay may be worth it for you.

How much heating oil should I order?

Your minimum heating oil cost is likely to be £125 upwards, based on 500L. 500L is the minimum order for heating oil in England, so it is worth ensuring you can manage your payments.

In order to get the best price for your heating oil, buy in bulk! The more you buy the cheaper each litre will be. Generally orders over 1000L will give you access to this greater discount.

Paying for your heating oil

MonthlyPay to spread your heating oil costFor first time customers, you will need to pay in full shortly after your delivery. We never take your payment before delivery to avoid you overpaying if the number of litres delivered is less.

After your initial order you can then choose to continue paying in full when you require a delivery or making use of our MonthlyPay scheme. MonthlyPay enables you to pay small amounts each month which are then used against your orders throughout the year. This gives you an easy way to save for your heating oil orders. If you have any questions just speak with Andrew.

Get set up on MonthlyPay today by calling 01423 396789

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Andrew Wells

Andrew Wells is the founder and owner of Yorkshire Oils. Yorkshire Oils was established following years of experience in the oil industry and the realisation that customer service was heavily lacking among oil suppliers.Andrew Wells, Owner of Yorkshire Oils

Andrew decided to become one of very few independent oil suppliers. This meant he could focus on offering a personal service and get to know our clients. Unfortunately many oil suppliers concentrate on the numbers. They have targets set by multinational companies and must sell huge quantities of oil. Sadly this leaves customers as just a number, instead of a valued client.

Andrew never felt this should be the case, hence Yorkshire Oils was built on getting to know customers. Andrew chose to serve specifically Yorkshire as he knows the county, being born & bred here. This also gives us a smaller area than the huge UK companies meaning we always have time for each & every customer.

Profile

Background: Andrew was in management for a multinational oil company for over 22 years.  During this time he was required to work within regional depots & head office. As with many large oil companies he saw his fair share of buy outs over this time.

Core Values: Andrew’s passion is for delivering personal service, along with spending time getting to know people. Anything Andrew can do for his home county, Yorkshire, is always high in priority.Oil Tank Dipstick

Yorkshire Roots: Andrew grew up around Ripon and attended school here as a child. He took part in many local activities and enjoyed his early years living the Yorkshire life. He was then offered the opportunity to attend Pocklington School as a teenager. Andrew has never been far from the county, living & working in the area ever since.

Where might we meet?: As you have probably gathered, Andrew loves meeting up with people and consequently has many loves outside of work. Andrew is a huge fan of sport, you might catch him at local Yorkshire Rugby matches, playing a spot of tennis or even on the golf course. He has also taken on a family tradition as Director of Ripon Racecourse, you will often see him here on race days. Keeping to his Yorkshire roots Andrew loves a visit to a Yorkshire pub for a tasty meal & refreshing drinks.

Keep up to date with Andrew and follow him on social media…

How is Coronavirus affecting the oil market?

How is coronavirus affecting the oil market you might ask. Well, China’s reaction to Coronavirus was initially to close down the cities and most would say rightly so. As a result, the shutdown of factories and the radical reduction of flights, has certainly justified the significant drop in oil prices.

China is the world’s largest importer of crude oil, of which they usually consume around 14 million barrels a day. (1 barrel=159L, so that’s 2 quadrillion litres a day!!!) Therefore their needs have dramatically declined to power machinery, fuel vehicles, and keep the lights on.

It is not just China who is using less oil. As airlines around the world suspend their flights & travel restrictions creep in the amount of jet fuel will decrease too.

But how do we expect coronavirus to affect oil prices to change over the next few months?

The main question to ask is whether the hysteria surrounding the Coronavirus has caused the oil demand forecasts to change considerably.

Many in the industry believe that if the epidemic dies out sooner than thought, then the Chinese oil demand has the potential to recover fully by the end of the year. In turn this would give a small reduction in the global oil market. Meaning your current price of home heating oil is unlikely to change dramatically.

It is worth considering that as the weather warms over the next few months, we would likely see a decrease in the coronavirus. Just as we do in England with the winter flu. This is not necessarily taken into account by the current forecast.

So far we have seen crude oil hit its lowest level in a year after it fell 20% from its January peak. This is the equivalent amount that the UK & Italy consume together. As a result this has shown the industry there is a strong link to coronavirus.

crude oil price, oil price drop due to coronavirus

Source: BBC News

What are oil producers expected to do about the Coronavirus impact?

The world’s largest oil producers are discussing more production cuts, on top of those which have been in place since 2016. The aim of this is to boost falling prices. Opec members have called for measures to support oil prices as the coronavirus continues to hit demand.

What does Coronavirus mean for your home heating oil price?

Well of course it is difficult to say, but we have been monitoring prices. Although the price has decreased since January it has remained relatively stable ever since. As we recover from Coronavirus and the oil market evens out, we would naturally expect an increase in price provided no additional epidemics take place.

oil price graph for Yorkshire

Source: Oil 4 Yorkshire