Fuel firm warns against delaying heating oil purchases amid price volatility

Heating oil suppliers are cautioning customers in southern England against delaying refills in hopes that prices will decrease. As colder weather approaches, firms report a significant drop in sales compared to seasonal norms, with many consumers adopting a wait-and-see attitude.

Dave Marsh, representing the Newbury-based firm Marsh Fuels, which serves Berkshire and Hampshire, noted that business is slower than expected. He suggested that customers are attempting to stretch their remaining supplies, hoping for a dip in market rates. However, Marsh warned that this strategy carries substantial risk; a sudden cold snap could leave households with critically low tanks and face urgent, potentially more expensive, delivery demands.

The caution comes as UK heating oil prices have surged by approximately 75% since the onset of the conflict in Iran on February 28, according to data from the BoilerJuice website. The Fuel Distribution Association (UKIFDA) has previously advised customers to prepare for severe weather, high demand, and potential delivery disruptions, citing how rapidly international events can impact wholesale energy markets.

Local residents have echoed the uncertainty surrounding the market. Andrew Illingworth, who organizes bulk oil purchases for residents in Broughton, Hampshire, reported handling fewer orders than usual for this time of year. He stated that many individuals are holding off on purchases, betting on a price recovery. Meanwhile, Chris Wheeler from Bucklebury, Berkshire, described the market fluctuations as frustrating but expressed a pragmatic approach, aiming to buy only when costs are at their lowest.

Energy experts urge a different strategy. Ellen Fraser, an energy expert at Baringa consultancy, advised purchasing oil immediately. Speaking on BBC Radio 4’s Money Box programme, she predicted that elevated prices would persist until at least April or May, by which time it would be too late to adequately fill storage tanks for the winter.

In response to the cost-of-living pressure, the UK government introduced a £50 million emergency fund in March to assist families struggling with soaring heating oil expenses.