Covid-19: Oil Price Drop

Covid-19 has been affecting industries across the world, and the oil market is no exception. However, houses that use home heating oil Shropshire are being provided with a brief windfall due to falling oil prices. 

The UK’s oil and gas industry is warning that due to the worldwide coronavirus pandemic, 30,000 jobs could be lost as oil prices reach their lowest in 20 years. For consumers of home heating oil in North Wales, and the rest of the UK, household heating bills have fallen by as much as 75%. 

However, there have been concerns raised over customers who are buying additional fuel to store for the winter - they could become targets for thieves looking to make a quick score. Roughly 1.5 million homes in the UK use heating oil, that’s including 114,000 in Wales. The majority of these homes are across predominantly rural areas where houses aren’t able to be connected to the main gas supply. 

These homeowners are being urged by industry experts to take full advantage of the oil prices falling - suppliers have reported that some customers are even buying extra fuel tanks in order to store more of the cheap fuel. 

Companies are reporting that demand for heating oil has increased significantly during the pandemic; heating oil is one of the highest expenditures for homeowners throughout the year. Usually, in the summer months, people tend to top up their tanks when the fuel is cheap, but at the moment they’re filling them completely. However, some fuel distributors are predicting a slump later on in the year with so many of their customers filling their tanks now. 

According to OFTEC (Oil Firing Technical Association), now is a really good time for heating oil customers to be buying their supply. There might be a small price rebound coming in the next few months, but it is thought that prices should remain relatively low for some time - until the world market recovers from the impact of Covid-19.