Weekly Price Update: Energy Costs Rising This Autumn

The main energy story in the mainstream news this week is the expected 9% increase in gas and electricity costs in October, but what does that mean for those on heating oil?

Heating oil customers don't have the luxury of knowing in advance when prices are going to change. That's why it is important for you to stay price aware, we can’t say for sure where heating oil prices are headed, but it's often seasonal. One key trend that we see most years is prices often rise in autumn and winter months as demand increases.

With autumn and those chilly evenings just around the corner, now could be the best time to grab a top up while prices remain favourable.

What could impact heating oil prices over the coming weeks?

• Geopolitical tensions: Ongoing instability in the Middle East, particularly around the Strait of Hormuz, is causing concern about potential oil supply disruptions. This creates risk around oil prices, which could push them higher if the situation worsens.
• Supply constraints: Even though OPEC+ may ease some production cuts, global oil supply is still tight. Plus, upcoming refinery maintenance this autumn could limit the availability of oil, potentially pushing prices up further.
• Seasonal demand: As we approach autumn, the demand for heating oil naturally rises, leading to potentially higher prices. If you haven't topped up so far this summer, now’s the time to consider ordering whilst prices remain at summer lows and before cooler weather arrives possibly increasing the cost.
• Economic uncertainty: The global economy is in a bit of a flux, with concerns about China’s slowdown and potential U.S. interest rate cuts. This uncertainty may cause oil prices to fluctuate in the coming weeks.

Are prices still at summer lows?

Although there was a slight bump in heating oil prices last week, they’re still close to their lowest point in the last 12 months, around 16% lower than this time last year. For a standard 650-litre order, that’s about £76 in savings!

If you haven’t ordered yet, now’s a great time to do so before autumn arrives. If a large order isn’t an option right now, you might still be able to take advantage of these low prices by ordering a smaller amount.

Get a Quick Quote now to see if smaller top-ups are available in your area today!