UK Heating Oil Market

When is the Best Time to Buy Heating Oil?

One of the most common questions we receive is: when should I buy heating oil to get the best price? While we can’t predict global events that impact prices, understanding key factors can help you make informed decisions and potentially save money.

What Affects Heating Oil Prices?

Heating oil prices fluctuate due to a variety of global, national, and regional influences:

Season & Weather – Prices typically rise in winter due to increased demand, as households use more heating oil. Summer often offers lower rates when demand is lower, but this isn’t always the case.

Global Supply & Geopolitics – Oil prices are heavily influenced by global events. Conflicts, trade restrictions, and production cuts can cause sudden price spikes, as seen in the 2022 Ukraine crisis and the 2019 Saudi oil facility attack.

Currency Exchange Rates – Since oil is traded in US dollars, a weaker GBP can keep UK heating oil prices high even when crude oil prices fall.

National & Local Factors – Prices also depend on UK-specific conditions, such as supply chain disruptions, refining capacity, and competition among suppliers in different regions. Areas with fewer suppliers often see higher prices due to reduced competition.

Heating Oil Prices in the UK

Domestic heating oil prices remain competitive compared to other energy sources.

As of Q1 2025, the average price has hovered between 60-70p per litre, though this can fluctuate daily based on the factors mentioned above. It’s essential to monitor pricing trends to secure the best deal.

The graph below provides an illustration of heating oil price movements throughout various regions in the UK - you can compare your region against the UK average price and other regions of the UK.

Please note these prices reflect the price in a single postcode. For a live price, please use our Quick Quote box on the right hand side of this page.

Simply tick the regions you wish to compare and select the time frame from the drop down list and click apply - the graph will then automatically update to display the relevant data.

The prices below are in £'s for 500 litres and include UK VAT of 5%.

Heating Oil Prices 2025

The UK average 500-litre rate can be viewed in the graph above. Heating oil prices have been extremely volatile since 2022 due to global disruptions, particularly the Russian invasion of Ukraine, and remain higher than pre-war levels.

What Factors Affect the Price of Heating Oil?

At ValueOils.com, we monitor heating oil prices daily and track the key factors that influence them. While some trends can be anticipated, geopolitical events and economic shifts can cause unexpected price fluctuations. Many UK consumers assume that weather is the main driver of heating oil prices, but multiple factors play a role. Here are the key influences to consider when purchasing heating oil:

Seasonal Demand

Winter months typically see higher prices due to increased demand across Europe and North America. Conversely, summer months, especially June and July, often offer lower rates, though this is not guaranteed.

Weather Conditions

Colder temperatures and extreme weather increase demand, leading to higher prices. Additionally, severe weather can disrupt delivery routes and impact distribution costs, affecting short-term pricing at a local level.

Supply & Market Influences

Heating oil prices are affected by supply conditions at different levels:

1. Global Factors

The price of crude oil and global kerosene supply directly impact UK heating oil costs.

Political instability in major oil-producing regions, including the Middle East, Southeast Asia, and the Americas, can cause price spikes.

Events such as trade disputes, economic sanctions, and production cuts (e.g., OPEC decisions) influence price trends.

2. National & Regional Factors

Local supply chain challenges, such as port delays or refinery outages, can drive up prices.

Competition among suppliers affects regional pricing—areas with fewer suppliers often face higher costs.

Kerosene demand for aviation and diesel fuel production can influence heating oil prices.

3. Local Market Conditions

Delivery costs depend on the distance from refineries or storage hubs, affecting rural and urban pricing.

Competitive pricing among suppliers is typically strongest in summer when demand is lower.

Some remote areas, like the Scottish Highlands, must purchase in summer due to winter delivery restrictions.

Economic Factors

Currency Exchange Rates

Oil is traded in US dollars, so the strength of the British pound affects heating oil prices. A weaker pound can keep prices high even when global oil costs drop.

Supplier Stock Levels

Prices fluctuate daily due to supplier purchasing contracts, stock availability, and wholesale market trends. Many suppliers avoid holding large inventories due to cash flow considerations and price volatility.

Order Quantity

Ordering a larger volume can reduce the per-litre price. Many suppliers in the UK and Northern Ireland now offer minimum deliveries of 300 litres, thanks to modern metering technology on tankers.

 

How to Get the Best Price on Heating Oil

Monitor market trends – Check regional price trends on our website.

Buy strategically – Consider purchasing during lower-demand periods.

Maintain your system – A well-serviced boiler and fuel additives can improve efficiency and lower costs.

Order in bulk – Larger orders often come with better rates.

Group buying – Community purchases can lead to bulk discounts.

Best Price & Flexible Payment Options

At ValueOils.com, we are committed to offering you our best available price from our network of suppliers. No matter when you choose to order, you can be confident that you're getting a competitive deal.

We also provide flexible payment options, including PayPal Pay in 3, allowing you to spread the cost of your heating oil purchase.

Want to lock in the best price today? Use our Quick Quote tool now!