Around 1.5 million homes in the UK rely on heating oil to heat their homes. This increase could see the cost of 1,000 litres rise to £399 (based on the UK average), an additional £55 since September.
"Whilst the recent price rise has been dramatic, heating oil still represents the cheapest form of energy available after historic price lows earlier in 2016. We do recognize times are uncertain for heating oil users, and we will continue to work hard for customers to provide the best price, service and convenience through our nationwide network of selected local suppliers."
- Ian Ronald, BoilerJuice CEO
The last time prices increased to these levels (December 2010), suppliers were struggling to make deliveries as blizzards caused chaos across the UK.
This time around, prices have soared due to recent world events: the weakened Pound Sterling following the UK referendum result; and speculation that many major oil producers, in particular Russia, were open to striking a deal with OPEC to reduce oil output.
Considering that heating oil prices increased sharply following speculation around the last OPEC meeting where the organization reached an 'agreement to agree', it is reasonable to assume that prices could increase further before the next OPEC meeting takes place on 30th November.
Many traders have speculated prices rising above $65 per barrel in 2017.
BoilerJuice are the UK's #1 independent heating oil website, with over 20,000 Trustpilot reviews averaging 9.4/10. By providing the cheapest price from a nationwide network of local and national suppliers, over 1 million orders have been placed with BoilerJuice since the business was founded in 2004. In the process, we've saved customers over £3m.
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