Brexit, will it affect heating oil prices?
How could Brexit affect heating oil?
Brexit has been a discussion on the tips of our tongues since 2016 when the U.K voted to exit out of the E.U. With the official document Operation Yellow Hammer, HMG Reasonable Worse Case Assumptions now released to the public, it states a number of ways that a No-Deal Brexit may affect Britain. In the Yellow Hammer Document some of the concerns regarding a No-Deal Brexit range from shortages in medicine to food and fuel.
Mr Carney The Governor of the Bank of England stated “One would expect prices to go up. It’s reasonable to expect, the markets are absolutely clear on this, that in the event of no-deal the exchange rate would go down for a period of time.” and shared his thoughts on some of the issues discussed in the Yellow Hammer Document , “…the area of the economy where that instantly translates into prices – it’s at the forecourt of the petrol station and in fruit and veg.”
The Yellow Hammer document (section 14) suggests that we may see a potential oil price rise due to Brexit creating delays with fuel reaching the U.K. The document also states “up to 85% of lorries using the main Channel crossings may not be ready for French customs, meaning disruption at ports would potentially last up to three months before the flow of traffic improved. With longer waits predicted due to new border laws, it could lead to a shortage of heating oil. This may affect people living in rural areas and homes off the gas grid as the price of their heating may also rise.
Another factor that may be affected by Brexit is the exchange rate of sterling. Rabobank Head Of Currency Strategy, Jane Foley states that “…if hopes that a deal could still be in place by the end of next month are snuffed out, euro/sterling could be re-setting its sight on the 0.90 level and potentially above”. As a lot of the U.K’s fuel is imported from abroad this may increase fuel prices.
For those on heating oil, keeping an eye on prices with our Average Heating Oil Price Chart can make it easier for you to know when the best time is to buy.
Brexit update
28.10.2019
Boris Johnson requested an extension for the completion date for Brexit. This was due to the original Brexit Deal that Boris Johnson proposed being rejected in the house of parliament.
The extension has been accepted by EU leaders and described as a “flextension“, this means the U.K can choose to leave the EU before the deadline date of the 31st January 2020. A finalised Brexit Deal is yet to be agreed, we will keep you updated on how the Brexit may affect heating oil as more information arises.
View price chart
Our Average heating oil price chart shows the the average price of heating oil in the England,Scotland, Northern Ireland and Wales.
What we recommend
Our opinion giving the information available to us is clearly that we are entering uncertain times. We have two main suggestions that we believe may help customers with buying heating oil during this period.
Order earlier
By ordering your heating oil early you may miss any prices rises that may happen due to Brexit. If a No-Deal Brexit happens it has been stated we may see delays in fuel reaching the U.K leading to increases in price.
Increase your order size
Increasing your order size will prepare you for any shortages that may happen due to Brexit and could save you money in the long run as prices may rise in the future.
Keep up to date with the Brexit news
BBC politics updates
Countdown to Brexit deadline
The Brexit deadline is set for the 31st January 2020.
Last updated: 28/10/19
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Good to Know
New to Heating Oil
How do Buying Weekends work?
Every day, we group qualifying orders in the same postcode district to help our customers save more on their heating oil.
Over Buying Weekends these orders are grouped across Friday, Saturday AND Sunday, giving you an even better chance of receiving a Group Saving.
Best Price Promise
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Group Savings
Save more with Group Savings
Typically, when you buy more than 2,000 litres of heating oil, you will pay a lower price per litre than if you were buying 500 litres.
This is because it is cheaper for Suppliers to deliver one large ‘bulk’ order to one area, than it is for them to deliver several smaller orders in different areas.
