Is Heating Oil Cheapest In Summer?

Online, August 5, 2010 (Newswire.com) - It is a widely held view that home heating oil is cheapest at summer. We are aware of at least one oil distributor in Northern Ireland that suggests that this is the case and recommends that people should order now when, they claim, prices are traditionally lower.

Cheapest Oil Ltd monitor home heating oil prices across the UK (in particular Northern Ireland) and across the Republic of Ireland and have started to question the importance of summer in the cost of heating oil.

The most expensive heating oil has ever been in Northern Ireland was in July 2008 when it topped £600 for 900 litres. Within 6 months, the average price for 900 litres had dropped almost in half to nearly £300. This fact alone would seem to disprove the suggestion that heating oil is cheapest in summer.

So is there any merit in this widely held view?

Cheapest Oil Ltd looked at comparing the price of oil on the stock market with the price of average price of home heating oil. There did tend to be a difference in the summer months compared with winter months. This usually equated to 1p or 2p a litre which is not insignificant. For 900 litres, this could mean a difference of around £9 to £18. However this variation pales in comparison to fluctuations that can occur on the world market

So the next time an oil distributor tells you oil is cheapest in summer, ask them when it was the most expensive. (Answer: July 2008)