Ordering Heating Oil in the Summer Could Save You Money
If you use home heating oil, also known as kerosene, you may think that ordering it is something to look at during the winter months, when the weather is a lot colder.
Heating oil may be the last thing on your mind whilst the sun is shining and the temperature is warm. However, research carried out by Which? found that buying heating oil in the summer can make it significantly cheaper since there is less demand and heating oil prices typically tend to be lower. Oil prices can also be affected by location, weather, political unrest and production levels around the world. But how much of a saving can there be, precisely?
Average national heating oil prices
Oil prices on any given day are decided by numerous factors, and for the same reason predicting future prices is impossible. But we can look at how past prices have behaved to gain an idea.
We looked at ONS data for heating oil prices over the last three years and found a distinct pattern – that August average national heating oil prices differed (on average, over three years) from December average national heating oil prices by 14%.
For homes ordering 1,000 litres of domestic heating oil, this represents a difference of £60. August prices over the last three years (2016 – 2018, 2019 not available) totalled £432.60, while the average December price over the last three years amounted to £492.70
With an estimated 1.5 million households in the UK relying on home heating oil to stay warm in winter, a £60 price rise for a tank of fuel amounts to £90 million pounds, so there’s every reason to order early and avoid overpaying and guarantee your fuel will be delivered in good time.
National average heating oil price (in pence/litre)
If you leave your tanks to run low you could leave no choice but to use emergency oil deliveries as the winter approaches, resulting in you most likely having to pay a premium. Buying ahead in the summer months can help you avoid any potential issues caused by bad weather spells.
Icy roads and heavy snow downfalls could hamper heating oil deliveries, causing delays and disruptions. Road conditions during the summer are likely to be free of such weather problems so it’s good practice to take advantage and order your heating oil whilst the weather conditions are known to be more reliable.
As well as not leaving it too late to place an order for the winter, we recommend buying in bulk, since the bigger the order, the lower the cost per litre will be.
On average, people tend to order fuel around 2-3 times a year – although this depends on the size of the tank and the amount of energy being used. Stocking up on fuel early, for example during the summer or as the Autumn starts to fall, will hopefully lead to lower prices and shorter delivery periods.
Here at Crown Oil, you can order home heating oil all year round at competitive prices. Our highly trained fuels team can provide you with a competitive quote and offer advice on how to store heating oil and protect your tank.
5 handy hints to reduce your heating oil price
- Order in August – oil prices are at their cheapest; 6p cheaper than in December
- Buy in bulk – one large delivery will be cheaper than two smaller deliveries
- Shop around – some suppliers might be able to offer you a better price on the day
- Track global market price – keeping an eye on oil price fluctuations can help you buy heating oil at the best price
- Order in advance – leaving your tank running low could leave you no choice but to use emergency deliveries which can often mean paying a premium