Payments Choices with D.E. ANDREWS
DE Andrews Fuels accept all major credit cards, we also take fuel-saving and council stamps. (Castlereagh, Newtownabbey, Antrim, Belfast and St Vincent de Paul) You can also pay by standing order (Please call for further info on setting this up). All credit cards incur a 1% surcharge and all debit cards are free.
What affects the price of heating oil?
Order Quantity – The quantity of fuel that you order for your oil tank will influence the pence per litre rate which you will pay. If a distributor is able to deliver a larger volume to your tank, typically the cost of delivery will be less.
Time of Year – Winter months are typically more expensive than the summer given the rise in demand across Europe & North America. In contrast, the summer months of June and July will usually provide the lowest rates, but not necessarily.
Weather – As the temperature drops and weather conditions worsen, the demand for oil will increase as customers will turn their heating on for longer periods, Extreme weather or unseasonal or freak weather can also significantly influence the logistical costs of distribution for oil companies. All these factors can lead to oil price rises or spikes in price.
Local – Local supply prices will generally vary depending on where a distributor is located in relation to a refinery or major storage facilities. The cost of product collection either ex-rack from the terminal or in haulage to the distributor’s depot for storage and then the cost of delivery to your home will impact upon the price paid. Rural areas can often be slightly more expensive for fuel than urban areas, but not always. The current high cost of road diesel is impacting on the delivered price of the product in 2013 and looks set to continue well into the winter of 2014. Local supplier competition is always fiercest during the summer months when local demand collapses due to warm weather. This can be an advantageous time to buy and to stock up for winter. Indeed, some more inaccessible places such as the Highland of Scotland can only receive deliveries during non-winter months and must buy fuel during summer.
National – The national supply and demand for kerosene will impact the price. If there is a regional issue hindering supply e.g. weather conditions, the price can temporarily rise. At a local level, the price can vary depending upon the number of suppliers concentrated in the area and their access to wholesale stock or indeed how effectively they purchase their fuel oil on contract. In addition, kerosene which is used widely in the UK for heating oil is also virtually the same product used to fuel aircraft. Therefore is the air travel industry is buoyant, the demand for kerosene remains high. Similarly, kerosene is used in producing ultra-low sulfur diesel and again when demand for ULSD is high, this impacts kerosene demand.
Global – The global supply of kerosene and the price of crude oil will impact on the price of heating oil. If there is a global production decrease or shortage in supply and the level of demand remains consistent, the price in the UK is likely to increase. Geopolitical factors or civil unrest in OPEC countries or neighbouring countries often lead to concerns oversupply and result in price increases. Decreases also follow when political circumstances settle down and production resumes. Recent examples include Lybia and previously the war in Iraq which both witnessed price spikes and drops.
Currency Exchange Rates – As oil is traded in US Dollars, the exchange rate between US$ and UK£ can have a huge bearing on the final price that we pay locally in the UK. If the UK£ strengthens against the US$, generally oil becomes cheaper and the reverse is also true. As currencies are impacted by world economic and political events, data and news around the world quickly feeds into exchange rates and immediately impacts the price of oil and other commodities.
Distributor Stock Levels – As the market prices fluctuate throughout each day, the price which a distributor is charging may change due to their purchasing contracts. Current stocks in the tank, the price change on a given day and outstanding order commitments all impact the selling price that a local distributor can offer to customers.