High oil prices mean that people who rely on heating oil to heat their homes are struggling to buy at a reasonable price.
Around 1.5m homes in the UK, usually those in rural areas, depend on heating oil, but prices have risen dramatically this past year. There is no cap on domestic heating oil costs, as there is for gas and electricity prices, which means when it comes to costs, the sky’s the limit.
The government announced that homes heated by oil would receive a one-off payment to help with rising energy costs as a top-up to the £400 payment going to all UK households. This extra payment of £200 was delivered as an automatic credit on the electricity bills of eligible homes in February – if you did not receive this payment and believe you should have, you can use this service on GOV.uk.
With the price of oil finally trending downwards and warmer weather on the way, households that depend on heating oil will hopefully start to gain back some of their budget soon.
According to the website BoilerJuice, kerosene was selling for around 74p per litre on March 1, which makes the cost of 500 litres about £370 (including VAT at 5%). Comparatively, the same amount of oil bought in January 2022 would have set you back at around £307.
We’ve put together a few tips on what you can do if you use heating oil for your home and are finding costs unaffordable, or if you’re finding it difficult to get your hands on any at all.
Compare costs
Ring around several different suppliers to try to find the most competitive price possible for your heating oil. There can be quite wide price differences depending on which supplier you go to. Heating oil comparison sites include Boilerjuice.com, Heatingoilshop.com and Fueltool.co.uk, but it’s worth ringing round smaller local suppliers too.
You may want to check whether there is a local oil club you can join in your area. These work by grouping together orders and bulk-buying heating oil, which enables members to benefit from cheaper costs.
A spokesman for group-buying site The Oil-Club, said: “We aim to provide the best savings possible by purchasing heating oil in bulk for each village. Most of the vehicles our suppliers use will hold up to 15,000 litres of heating oil. So once we have enough orders for your village we will start the order and delivery process. The more members you have in your village the more frequently we can arrange deliveries, and the better the price. Once a member you can see the progress of your group.
“Ordering smaller amounts such as 500 or 1000 litres from your supplier directly is costly. But because The Oil-Club will be ordering a large quantity for a number of other people in your area, you are able to top up 500 or a 1000 litres and benefit from the overall bulk purchase, thus saving you money on every order.”
Plan ahead
Deliveries in many areas of the country during the winter months may take much longer than usual, so keep a close eye on your oil supply and order well in advance. It’s usually worth placing your next order when your tank gets down to around 35-40% capacity, so that you have enough oil to last you for the next few weeks.
If you’re still struggling to find anyone to supply you with oil, you may have to settle for a different amount of oil than you usually get – some buyers say that they can only place exact volume orders instead of ‘tank fill’ orders.
If you’re having a really tough time getting hold of any oil at short notice, ask around your local garages – some sell heating oil in canisters which may help tide you over until you can get a delivery.
Compare cheap car insurance quotes
Car insurance renewal premiums have a habit of increasing every year, even if you haven’t made a claim. Compare car insurance quotes from over 110 UK providers – you could save up to £530* per year.
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Are there any other ways to heat your home?
If you have any other methods to warm your home while keeping your oil usage low then these could be worth making the most of.
If you have a wood-burning stove, for example, then you may need to rely on this more than usual if you’re finding it hard to come by heating oil at a price you can afford.
If your home is poorly insulated, there may be improvements that can be made to your home to make it warmer via insulation and heating schemes which provide funding to make properties more energy efficient.
You can use the links below to find out more about schemes that may be available to you depending on where you live:
Secure your oil supply
Rising heating oil prices often lead to an increase in oil theft, with thieves draining tanks while homeowners are out, or under the cover of darkness.
Make sure your oil tank is in a well-lit area, or fit security lighting near it. It’s also a good idea to install an alarmed lock to prevent your supply being stolen.
What if you can’t afford to buy oil?
Get in touch with your local Citizens Advice Bureau if you can’t afford to buy heating oil – they may be able to point you in the direction of charities which might be able to provide you with financial support or grants to put towards your heating oil costs.
You may be eligible for a Winter Fuel Payment if you were born on or before 5th April 1954. There are different rates of payment depending on age, whether you are receiving pension credit or social security benefits, and whether you live in a care home. You could be entitled to between £100 – £300, which can be used to help cover heating oil costs. Find out more in our guide Are you eligible for help with heating costs?
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