Risks being taken with heating oil orders, firm says

Dave Marsh stands next to a row of large, green oil tanks as he gives a TV interview. He has a company Polo shirt, grey hair and glasses.

Image caption,

Supplier Dave Marsh said customers might be leaving it too late to refill their tanks

ByMarcus WhiteSouth of England

Published51 minutes ago

Heating oil customers who are worried about the cost are taking risks by delaying orders in the hope of a price fall, a firm has warned.

Marsh Fuels, which supplies heating oil in Berkshire and Hampshire, said its sales were lower than expected as colder weather approaches.

However, the firm said customers could run out of oil or expose themselves to even higher bills by waiting.

UK heating oil prices have risen by about 75% since the start of the Iran conflict on 28 February, according to the BoilerJuice website, external.

Dave Marsh from the Newbury-based firm said: "We're coming into autumn and we would expect to be busier than we are.

"And so we've made the assumption that customers are hanging on, trying to eke out that little bit of oil they've still got left in the bottom of their tank, hoping for the price to dip.

"The problem is that can be quite risky. If we get a cold snap and the customers are lower than they think they are, they may suddenly be urgent."

Andrew Illingworth stands on his lawn giving a TV interview. He has curly, white hair and a blue shirt.

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Andrew Illingworth said heating oil orders had fallen in his village

Andrew Illingworth, who buys oil on behalf of residents in Broughton, Hampshire, said he was handling fewer orders than normal for the time of year.

"A lot of them are holding off at the moment," he said.

"They're hoping that it's going to go back down again, but who knows at the moment."

Chris Wheeler, from Bucklebury, Berkshire, said the price volatility, including surges and dips, was "frustrating".

"You never know what's going to happen," he said. "Except at the moment all you can expect is that the price is going to go up.

"So we're trying to manage our purchases so that we can buy it when it's at its cheapest."

Chris Wheeler sits on his sofa giving a TV interview. He has short, white hair, a T-shirt and glasses.

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Chris Wheeler said he planned to buy oil when the price dropped

Ellen Fraser, energy expert at the Baringa consultancy, said she would buy oil now.

She told the Money Box programme on BBC Radio 4: "We're expecting those prices to stay high until at least April and May, which is obviously far too late to fill the tank."

The Fuel Distribution Association (UKIFDA) previously said customers should prepare for periods of increased demand, severe weather or unexpected delivery delays.

Chief executive Ken Mackness said: "The events we saw earlier this year demonstrated how quickly international developments can affect wholesale energy markets."

In March, the government announced a £50m emergency fund, external to help struggling families with heating oil costs.