‘Amazing value’ in heating oil leads to unseasonal demand
THE current price of heating oil is nothing short of ‘amazing value’, according to Rodney Bates, managing director of Bates Oil in Wexford.
The company boss explained that prices initially dropped slightly in February due to a slowdown in demand caused by the economic effects of the coronavirus in China. ‘Since the Covid-19 pandemic has hit the rest of the world, demand for oil has plummeted due to the lack of travel,’ he said.
‘Russia and Opec initially failed to agree a restriction in supply which led to a huge oversupply and this in turn led to a considerable drop in crude oil prices. This has now been passed on to the end consumer.
‘In real terms, this has led to the price of heating oil dropping by almost 50% since January of this year. Recently, crude oil prices have hit their lowest price this century.’
An order of 500 litres cost approximately €200, including VAT last week, with 1,000 litres costing €390, before a carbon tax, introduced in a government budget, came into effect last Friday.
Rodney said the price drop is great news for customers and many of them are taking advantage by filling their tanks, with a surge in demand taking place in the days before the tax came in.
‘Kerosene sales are much stronger than normal for this time of year as no one is sure how long these low prices will last. Our customers can’t believe the value for money and it couldn’t have come at a better time as many people are using more oil than usual as they are at home more during the current lockdown.’
He added that while heating oil sales have increased, road diesel and petrol sales have dropped considerably as less vehicles are on the road. ‘We are continuing to deliver and encouraging contactless deliveries to safeguard our employees and customers,’ he said.