Domestic Oil Prices: Running Hot and Cold

The fluctuation in the cost of domestic oil prices adheres to a simple economic principle. When demand for oil is low, then domestic oil prices are similarly low and when demand for oil is high then domestic oil prices are, in turn, higher.

A Trendy Trend

Domestic oil prices in the UK tend to follow an annual trend which sees the price of the more popular forms of domestic heating oil, such as kerosene 28, fluctuate as a result of the time of the year and the temperature outdoors. In any given year the price of domestic heating oil in the UK tends to hit a low during the months of June and July and then steadily increase towards the end of October and the beginning of November as kerosene users stock up on their oil in preparation for the colder winter months.

Turn the Heating Up and Your Spending Down

In January of 2011 the Office of Fair Trading launched an investigation into the soaring cost of domestic heating oil over the course of the preceding few months amidst complaints from consumers of a massive hike in the price of heating oil. Concerns were raised over the fact that many of the larger heating oil providers had gained a monopoly of the domestic oil market and were in a position to charge excessive fees for their product and thus exploit the customers to whom they provided fuel. As a result of this inquiry,as well as the choice that the Internet affords the modern consumer, many kerosene users began to source their oil from smaller, independent domestic oil providers who offered them a stable price that was based on demand and not perceived exploitation. As such, those consumers who buy their fuel from independent companies stand to benefit from some of the cheapest heating oil process in the UK market.

Nestle Away Your Nuts and Oil for the Winter

The number of people in the UK that rely on domestic oil stored in a domestic oil tank is estimated to be in the region of 2.5 million. Whilst independent heating oil companies are unlikely to exploit the consumer you must also remember that independent domestic heating oil suppliers tend to factor in for demand when pricing their fuel in the colder winter months, further causing pricing to rise. Therefore it is advisable to purchase the cheapest home heating oil in months when demand is low in ready preparation for the colder climate.

Put Much Store in Storage

By learning about how to store domestic heating oil safely the average consumer can save themselves a lot of money. Kerosene oil and domestic fuel oil providers recommend that their products can be stored for up to three months; however if you store your heating oil away from light and moisture in a secure domestic oil tank then scientists estimate that the product will remain safe for many years.

A financially savvy consumer would opt to purchase their domestic heating oil when the market price troughs in June and store their fuel for usage during the winter. This ultimately helps to keep ones hands, feet and finances comfortably in the red.

James Charles is a frequent contributor for Fuelfighter and has written many articles pertaining to all things regarding domestic heating oil, energy saving tips especially on such subjects as making the best of your precious boilerjuice for your heating requirements.