Latest industry figures show oil prices have fallen a further 10.5 per cent with consumers reaping the benefits because the drop in wholesale costs are being passed directly on – unlike the picture for households on mains gas and electricity.
According to the Sutherland Tables – a recognised independent source of data on comparative UK domestic heating prices – oil continues to trump competitor fuels on price.
The cost of heating an average three-bedroom home in Britain with oil is now just £793 per year, coming in at 24 per cent less expensive than mains gas, the second cheapest option at £1038 per annum. Oil is also currently 48.7 per cent cheaper then LPG and 50 per cent cheaper than electric storage heaters to heat the same average home.
Importantly, FPS says the huge price difference between oil and the other main heating fuels is partly down to the current low cost of crude oil being straight on to customers.
This contrasts with the experience of many consumers on mains gas and electricity with energy secretary Amber Rudd recently stating it was “frustrating that the falls in wholesale gas prices have not been passed on to most households”.
Oftec director general Jeremy Hawksley said "It is pleasing to see the industry is acting responsibly and playing its part in ensuring a fair deal on price for the UK’s 1.4 million oil-using households. Oil consumers have seen the cost of heating their homes fall consistently for the past two years and with prices predicted to remain low for some time to come, the case for sticking with oil, or even switching to oil, is strong”
With this in mind, Oftec continues to urge government to completely rethink the UK’s low carbon heat strategy. Instead of incentivising 100 per cent renewable solutions which aren’t practical or affordable to the majority of people, the focus should be on solutions that are simple, affordable to install and run, and impose limited disruption on the homeowner.
Jeremy Hawksley added: “We are concerned to see the Department for Energy and Climate Change is continuing to back the domestic Renewable Heat Incentive (RHI) which has fallen way short of expectations in terms of delivering renewable installations. Unless radical changes are made to the scheme, it will continue to only benefit the wealthy few”.
Source : FPS