Many using heating oil have made savings from the falling price, LPG users and those filling up their cars with fuel have not benefitted quite so well.
The AA has claimed that motorists are being ‘ripped off’ by petrol companies not passing on cheaper oil prices to the pump, although government figures suggest that a litre of unleaded petrol fell from 127p in January to 107p and the perceived bonanza in increased margin is against a backdrop of heavily depressed sales volumes. At worst throughput has been 60-70% down and, currently, is around one third reduced.
Malcolm Farrow also suggests that users of LPG for central heating have not benefited as much from cheaper crude oil “because they are locked into longer-term contracts,”
“As they renew their contracts, they’ll get a better deal if the LPG suppliers think prices are likely to stay low for a period.
“But with LPG, particularly if you’ve got a larger tank, it’s usually owned by the supplier, so changing supplier is not quite so straightforward.”
The future of oil
Whilst the industry waits for the outcome of the pandemic on the economy, like everyone else, Carol Bell, an industry expert highlights the ongoing challenge; “There was already a global conversation about the future of oil, as concern grows about climate change.”
“Add to that, the fact that many businesses have discovered during the pandemic that many of their staff can work from home, and you can see a situation where the demand for fuel could continue to be lower than pre-pandemic levels and decline over the longer term.”
Source: Fuel Oil News