Many families in the UK use heating oil in their homes, but how much is heating oil, and why do prices seem to fluctuate so much? In this article, we will cover what heating oil is, how much it costs, why prices fluctuate throughout the year, and more.

We understand the frustration that can follow when dealing with heating oil, and how the costs can add up. So, if you want to learn how to bring costs down, too, simply keep reading.

Here at South West Gas Services we offer industrial and commercial, as well as domestic and oil services, to those who need it.

What is Heating Oil?

Simply put, the term ‘heating oil’ is an umbrella description that we use when talking about a number of different fuels that can be used for heating. This includes carbon-clean kerosene, kerosene, IHO, and gas oil (red diesel, but not for vehicles).

The oil can be used for central heating, but can be expensive, so is something that landlords should always bear in mind when purchasing a house.

How Much is Heating Oil?

The price of heating oil will vary from one supplier to the next, but only marginally. This is because proving heating oil is competitive, and the only way to compete with your competitors is to offer reasonable prices for the product – because the customer is more likely to choose whichever can offer them the best deal.

As it stands, the cost of heating oil in October 2024 is 58.83 per litre. However, as we will discuss below, this price is bound to fluctuate, and has already done so many times just this year. For example, earlier in 2024, the price was 69.131 per litre for more than 900 litres. This price will likely change by November 2024, and will change again in the months that follow.

Why Do Prices Fluctuate So Much?

Unfortunately, the price of heating oil will constantly fluctuate, and there is little that we can do about this. Below, we will go through some of the key reasons why domestic and international heating oil prices will go up and down, and why there is never one consistent price.

Domestic Heating Oil

Below is the reason why domestic oil prices can fluctuate so much:

• Supply and demand – the more demand there is for something, the higher companies will change for it, whether it’s a necessity or not. This is why prices are higher in the winter, when demand is higher.
• Delivery costs – buying in bulk can help with delivery costs, but it’s important to remember that an oil tank can never be 100% filled to capacity due to the potential for spillage.
• Location – distant locations, or locations that are more difficult to reach, will incur additional costs for delivery. This is why we will always recommend opting for a company with a good network, so you don’t need to fork out to get your oil, no matter where you live.

International Heating Oil

Below are the key reasons for why the price of international oil can fluctuate so much:

• Conflicts around the world – additional security and protection needed in countries where there are conflicts will inflate the price of heating oils, and the higher exportation costs all impact the price of heating oils.
• Foreign exchange rates – most heating oil in the UK is imported, and exchange rates vary greatly from one country to the next, which will in turn impact the price you pay for your oil in the UK.
• OPEC agreements – the Organisation of the Petroleum Exporting Countries (OPEC) is made up of 12 countries that regularly meet and coordinate policies to stabilise global oil prices, which can lead to the increase or decrease of these prices.

Is Oil or Electric Better for Heating Up a Home?

If you are wondering if oil or electricity is better for heating your home, you aren’t alone. In the sections below, we will be looking at all the pros and cons to consider, so that you can make your own mind up and see which one works best for you.

Pros and Cons of Oil

Let’s have a look at the pros and cons of using oil for heating your home in the sections below. This will give you a good idea of what to expect if you use oil, and why you might want to consider changing it if possible.

Pros of Using Heating Oil

• More affordable than electricity
• Some oil boiler can be installed outside
• More choices for oil boilers compared to electric ones

Cons of Using Heating Oil

• They emit carbon
• Not as efficient compared to electric boilers
• Prices will continue to go up
• More space is needed for the oil tank
• Oil tanks can leak
• Separate fuel might be necessary for cooking
• More likely to have faults due to more moving parts

Pros and Cons of Electric

Below, we will explore the pros and cons of going electric or your boiler to heat your house. Please remember that you will need to compare and contrast to see which option suits you, your lifestyle, and your house the best, as this is only a decision that you can make.

Pros of Using Electricity

• No leak risks
• Free heating when paired with solar panels
• No emissions
• Flexibility in placement due to no flue pipe being needed
• Almost noise-free
• Less likely to come up faulty
• No fuel storage needed

Cons of Using Electricity

• Currently more expensive than oil boilers
• Better for small houses
• Most electricity is created by burning fossil fuels

How to Keep Costs Lower When Buying Heating Oil

If you want to try and keep costs down when you buy heating oil, there are a number of things that you can do to work towards this. We will explore these in sections below.

Buy Heating Oil in the Summer

Buy heating oil in the summer months when demand is lower. This means putting in your orders in June, July and August so that you beat the autumn and winter rush and price increases, when most other people will be fuelling up.

It’s important to note that this will not always be the case, though. Some years, such as 2022, have shown us that oil prices can go up during the summer because of the increased number of people choosing to get the oils in the warmer months.

Never Buy Last-Minute

Another major factor that shoots the price of heating oil up is when it gets delivered last-minute. Try and plan ahead wherever possible and gauge when you will need a refill. If you can determine this, you can put an order in ahead of time and secure a more affordable price on both the oil and the delivery.

Remember that we pay for convenience, and this can put the price up a lot. By planning and taking steps to figure things out ahead of time, this price for convenience can be reduced significantly.

Compare Heating Oil Providers

Finally, we will always recommend that you compare providers to find the best deals for you. However, when doing this, please bear in mind the delivery dates that you have in mind. As we already mentioned, anything last-minute will cost more.

You can compare prices by using an online instant quote tool (like this one) to help you get started.

Final Thoughts

So, how much is heating oil? While prices fluctuate throughout the year, October 2024 prices stand at 58.83 per litre. However, earlier this year it was 69.131 per litre for more than 900 litres, so you should always be prepared for the fluctuations that come with supply and demand, among other things.

For more information, read the about us page or contact us, and stay up-to-date through our news.