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General Information

How to lower your oil heating costs:

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Price changes: At a refinery crude oil is separated into petrol, kerosene, diesel, heavy oil, bitumen, and sometimes coke. Prices for these refined products are dragged along by movements in the price for crude oil as it is affected by political, climatic, or economic factors. Other factors may also affect the local supply and demand for particular products - the budget for example.

Currency rates: Traditionally oil is traded in US dollars in the world's financial markets. The value of the UK pound sterling against the US dollar can significantly affect our oil prices. The weaker the pound the higher the oil price.

Seasonality: When crude prices are stable, heating oil prices tend to rise in the winter months when demand is higher. Typically a household may use 2000 to 5000 litres of heating oil during the winter, but consume very little during the summer. Prices can surge very quickly if a 'cold snap' occurs in either the USA or Europe.

VAT: VAT is charged at the reduced rate of 5% on all domestic energy. The government has defined deliveries of Kerosene and Gas Oil of up to 2300 litres as domestic, and these will only have 5% VAT added. If you have larger deliveries, providing at least 60% is for domestic use, and you tell us, VAT will be charged at the reduced rate. All other deliveries are charged at the standard rate of 20%. Click Here for more information.

RDCO: Much of the duty on fuels, such as petrol and road diesel, is rebated on Kerosene and Gas Oil. To supply rebated fuels suppliers must apply to HM Inland Revenue and Customs to become Registered Dealers in Controlled Oils. Each month HM Customs require an analysis of BfS deliveries of Kerosene and Gas Oil by customer and postcode, with an analysis of the use of the fuel, and where appropriate the customer's VAT number. By this means government has reduced the misuse in road vehicles of rebated fuel, particularly Gas Oil, thus saving otherwise lost duty. Click here for more information.

Central Heating Boilers: Boilers must be serviced regalarly in accordance with their manufacturer's recommendations. Remember, if you improve your boiler's efficiency by 5%, you need 5% less heating oil. Qualified engineers may be found through the Oftec website.

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