The average price per litre for kerosene* has decreased by more than 7 pence per litre since the 12 month high of 59.63p in September 2013. This represents a 4 pence drop from the May 2013 price per litre and is good news for home heating oil users, who are benefiting from the falling cost of oil whilst gas and electricity users are seeing year on year increases to their energy bills.
UK Heating oil prices are low despite crude prices rising. Prices have been helped by a weak dollar and a mild winter in the UK.
Will heating oil prices remain low?
The simplest answer to this question is that, as we approach the summer months heating oil prices traditionally drop as demand falls, which represents a good opportunity to buy your heating oil should prices rise again as the weather gets colder. However, there are many factors that could affect prices such as conflicts in oil producing areas – the situation in Ukraine, continuing unrest in Libya for example – and global supply and demand.
The positive outlook for world economies in general could also drive up heating oil prices in the coming months as demand for oil will increase. However, this could be counterbalanced by the US boom in shale production, which is decreasing the demand for oil from North America.
It’s always difficult to predict the price of oil, but generally we would always advise to purchase during the warmer months when demand is lower. For our latest home heating prices please fill in our quote form or contact your local depot.