The best advice to prepare for heating oil prices this winter

Summary of Tim Buckman's Interview

• Heating oil prices were volatile in March 2022 due to the Russian invasion, and prices spiked to over £1+ ppl.
• Since April, prices have started to settle but stayed around 85-100 ppl on average.
• Some heating oil households are looking at a 50% increase in heating bills this winter in comparison to last year.
• Apart from the Russian invasion, other factors that impact heating oil costs are the cost of storage and distribution.
• BoilerJuice data shows that some heating oil households have been delaying their top-ups. If prices see no movement before winter, there may be a spike in demand leading to longer delivery windows and higher prices this winter

Tim's 5 Top Tips To Help You Prepare For Heating Oil Prices This Winter

1. If possible, order outside of the peak times to reduce the chance of paying higher prices.
2. Top-up now if there is space in the tank, as oil prices may rise in the winter.
3. Keep an eye on prices with the BoilerJuice Price Checker.
4. You can prepare for heating oil prices this winter by storing away funds ready for your next order. The Payment Plan or the Connected service both provide an option to spread the cost of your heating oil bills.
5. Keep your boiler serviced to make sure it is as efficient as possible.

Read the full interview with Tim Buckman below

What's Been Going On With Heating Oil Over The Last Year?

" Let’s start with what have we seen in the domestic heating oil market. Heating oil prices were around 60p a litre prior to Russia invading Ukraine in March.  At that level, the average UK household would be spending £1200 a year to heat their homes.   

In March, heating oil prices rocketed above £1 a litre and were extremely volatile, fluctuating daily. After a couple of weeks as demand and the market settled, prices dropped to around £1 and they have fluctuated between 85p and £1 since.  

So households now face the prospect of their bills being 50% higher this winter. "

Apart from the Russian invasion, what other factors affect heating oil prices?

" There are other factors that affect the price you pay, cost of storage and distribution, for instance, along with other increasing costs that a fuel distributor may face.  

But really the other key factor is demand; if everybody needs fuel at the same time, historically that translates to higher prices and longer lead times.  You can often see this in the lead-up to Christmas or if we have snow. "

BBC Oil Price Chart 2022                                                                                   

BoilerJuice Average Heating Oil Price Chart 2022

What does BoilerJuice think will happen to heating oil prices this winter?

" Inevitably the price of heating oil will fluctuate based on cost of crude oil, but what will happen to crude prices – that’s not something we’d be confident in speculating on.  But let's just assume no major movement up or down.

What we can be more confident in, is that demand will increase as we get to winter, if that is compounded by latent demand from the summer, that could result in a demand spike as we come into winter.  In that event, we would expect longer delivery windows and a higher prices. "

Is there any advice or suggestions that BoilerJuice can give to heating oil households in preparation for the winter?

" If you can order outside of peak times such as the run-up to Christmas, or when there is no severe weather forecast do so. But more importantly, this year, don’t wait until it gets cold!  Top-up if possible, to help take yourself out of that potential peak.  

We are not saying fill up, but top up, so you have extra time.  This means you won’t find yourself in a position of paying higher prices or worse still, the risk of running out. 

Keep track of what prices are doing on our website, and maybe you may want to consider a Payment Plan or our Connected service to help you spread the cost of your heating oil bill.

The last piece of advice, keep your boiler regularly serviced, and reduce the risk of a costly breakdown but also your fuel will burn more effectively, and with high prices this will save you money in the long run. "

Where can I find prices right now?

• Keep an eye on heating oil prices with the BoilerJuice Average Price Charts
• Prepare for heating oil prices by saving for your next order. Setting up a Payment Plan is quick and easy; just click here to get started.
• Need a boiler service?  Click here now for a local quote.

Ready to top-up now?