Why domestic heating oil prices are at an 8 year low

Over the years you might have heard friends, family members, those people “in the know” tell you that home heating oil is one of the most expensive ways to heat your home and that gas is so much cheaper. We’re here to tell you that it’s one of the biggest myths around heating oil in Ireland, and not at all true, as currently oil prices are at an 8 year low!

Normally, there are a lot of external factors that affect the cost of your home heating oil in Ireland, like global warming patterns, currency exchange rates, over-production and oil companies refusing to slow this down, readily available new sources of oil being found, and in this case it seems to be mostly attributed to a big drop in wholesale costs of crude oil which is being passed on to customers. The same can’t be said for natural gas customers however, which is why it really pays to be an oil customer at the moment. In fact, a lot of people are switching back to oil as it one of the most cost effective heating solutions.

So, should you start panic buying now while you can? Experts say no, there’s no need to rush out and buy all you can get your hands on at this price, as heating oil costs are predicted to remain low for some time. Considering the basic principles of supply and demand (when something is scarce, demand goes up and people are prepared to pay more for it), it would appear that because oil is so readily available at present there doesn’t seem to be any need to worry about the price escalating any time soon. That being said however, it’s coming into the coldest time of the year, so if you haven’t already topped up your tank to see you through Christmas and the new year, now is the perfect time to do it.

The additional good news is that this drop in home heating oil prices has also triggered a decrease in the cost of petrol, so now you can fill up on fuel for less too. However, environmentalists are concerned that due to this trend, it may trigger an adverse effect on the amount of carbon emissions, so just because you got it for a song doesn’t mean you should waste your oil or drive to the shop and back when it’s just as handy to walk!

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