Throughout our guide, we will help you to understand what heating oil is, the current prices, what causes them to go up and down, how Rix calculate heating oil prices and how you can work out your own heating oil prices & costs.
In addition, as a heating oil supplier, we have all the latest information on the movement of oil prices. So there is no place better to find out how much your fuel costs.
Heating oil is a liquid petroleum product used for residential and commercial heating. It is similar to diesel fuel but formulated specifically for use in furnaces and boilers.
Key facts about heating oil:
Heating oil is an efficient and reliable heat source for homes and businesses in cold regions.
Energy, including heating oil usage, is measured in Watts (named after Scottish scientist and engineer James Watt). However, the measurement more commonly seen is kilowatts (kW) – the equivalent to 1000 Watts – as it takes many Watts to heat a home.
To break down energy usage, you need to know how long the heating is on in hours. Therefore, total energy use is measured in kilowatt-hours or kWh.
From our customer data, we know the average UK household using heating oil as their primary source of energy expends around 26,000 kWh each year on heating.
If you have moved into a house that uses home heating oil, be sure to ask the previous owners for an estimate on how much heating oil they used. You could also ask your neighbours, as it's likely that they will also be using heating oil for their homes.
Firstly, we need to identify how many kWh are in a litre of heating oil. We know that kerosene contains circa 10.35 kWh of energy per litre.
To calculate the volume of heating oil, an average UK home uses in a year, you need to:
Divide the total energy expenditure (in this example 26,000 kWh), by the amount of energy in one litre of kerosene; 10.35 kWh
This equals:
2,512 litres of heating oil, or 2 – 3 tanks
This is about what we would expect to deliver to an average-sized property in a year.
Next, we need to consider seasonality, because even the coldest person doesn’t have their heating on all year round.
So, as an example scenario, if the average UK household has their heating on for six months of the year (six hours each day), and six months is roughly the equivalent of 180 days,:
Dividing 26,000 by 180 gives us the amount of energy used by your home every day it is on
This equals:
144.44 kWh each day
To get a figure for daily usage, you need to: we simply:
Divide 144.44 kWh by 10.35 kWh (the energy value of kerosene)
This equals:
Just under 14 litres
Working out how much you use per hour then becomes easy, you need to:
Divide 14 (litres used per day) by 6 (hours the heating is on per day)
This equals:
2.33 litres
There are many factors that affect heating oil prices across the globe that impact the oil market. Heating oil prices often fluctuate due to certain factors which influence the markets. Some factors include:
OPEC - OPEC stands for The Organisation of the Petroleum Exporting Countries. There are 12 member countries that meet regularly to coordinate heating oil policies. Their aim is to try to stabilise the price of oil globally and to maintain reliable supplies of oil. The agreements and decisions made can directly impact the price of heating oil.
Demand increases - demand tends to fluctuate for oil and is also dependent on many external factors. However, when demand for oil increases, so does the price
VAT rates
All of these factors cause the price of heating oil within the UK to fluctuate.
Heating oil prices are always subject to fluctuation, however there are general trends and top tips you should keep in mind when planning your next heating oil purchase. These could help you save money or see better value for money on your heating oil order.
It's never too early to consider how to save on heating oil. It's important to keep up-to-date with the price of domestic heating oil, as this fluctuates with the global markets; tracking these fluctuations can help you to buy your kerosene at the best price.
Placing your order in advance is probably the most important factor when it comes to how to save money on oil heating. Typically, if you can purchase your heating oil ahead of the winter peak, you’re likely to enjoy a cheaper cost per litre as prices generally rise in line with demand.
Generally speaking, the larger the quantity of heating oil you buy, the lower the price per litre. This is because the more we deliver per customer, the better it is economically for our vehicles, so we can pass the savings on to you.
When buying home heating oil, the choice between many different suppliers can seem overwhelming. A great first place to start is by asking for recommendations.
Asking friends and family, or the local community if you have moved to a new area, for recommendations will give you honest accounts of heating oil supplier experiences as they will personally have tried and tested the services on offer.
At Rix, you can purchase heating oil for domestic or agricultural use at the best market price. We have plenty of fuel options for you to choose from.
Contact us here for more information
