Cost of living crisis Ireland: Heating oil prices fall but we still face bills twice as high as last year

The cost of heating oil has fallen again in recent weeks.

But households are still paying almost twice as much as they did a year ago.

With winter approaching, many people are embracing oil, with average prices now down by €250 for a 1,000 liter fill compared to June prices.

This is a decrease of about 20 percent.

However, the current cost is still nearly double what the 1.5 million households using the fuel did last year.

So if you haven’t filled up a tank since last year, you’ll be in for a shock. Across the country, 1,000 liters of heating oil costs an average of €1,248, according to the average prices on the website Oilprices.ie.

This time last year it cost an average of around 650 euros for the same amount.

Anyone who hasn’t had to order heating oil since last year will have to pay hundreds of euros more for fuel this fall.

Crude oil prices in global markets have fallen lately amid fears that China’s economy — a heavy oil consumer — could be slowing.

As a result, the pressure on the sharply increased wholesale prices has eased somewhat.

Prices have been volatile since the Russian invasion of Ukraine in February.

Consumers Association of Ireland leader Michael Kilcoyne has called for a reduction in VAT on heating oil.

The temporary reduction in VAT on electricity and gas products introduced earlier this year did not include heating oil or solid fuels.

Most people in rural areas do not have access to tap gas.

Mr Kilcoyne said: “Domestic heating oil is an essential commodity for people.”

He said people on fixed incomes, like the elderly, will face a choice this winter between heating their homes or supporting themselves.

“VAT on heating oil should be reduced. And it should be removed entirely for people on fixed incomes,” Mr Kilcoyne said.

The government says it has been unable to strike a deal with the EU to allow it to reduce VAT on heating oil.

The CO2 tax on heating oil was increased by EUR 19.40 to 900 liters of kerosene in May.

This means that people are now paying 93 euros for 900 liters of oil. The money raised by the carbon tax will be used to fight fuel poverty and fund measures to help communities switch to greener energy.

Kevin McPartlan of Fuels for Ireland, whose members import oil, said demand for heating oil had increased in recent weeks.

He said demand will be even stronger once the country experiences its first cold spell in the fall.

“When there’s a cold snap, there’s a rush to fill tanks and demand goes up,” he said. “Oil companies hold high inventories so they can deal with any potential surge.”

He said the crude oil market appears to have stabilized, particularly since members of OPEC (Organization of Petroleum Exporting Countries) started to ramp up supplies.

Nicholas Hayes of the UK Ireland Fuel Distributors Association said demand is relatively low at the moment. He said prices have fallen significantly in recent weeks.

https://www.independent.ie/business/personal-finance/cost-of-living-crisis-home-heating-oil-prices-drop-but-we-still-face-double-the-bills-of-last-year-41929982.html Cost of living crisis Ireland: Heating oil prices fall but we still face bills twice as high as last year

Fry Electronics Team

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