Heating oil, the fuel that warms roughly 1.5 million Irish homes, has grown a little cheaper over the summer, yet it still costs almost twice what it did a year ago, so the easing offers more relief in the abstract than in the kitchen. The fall follows a global ebb in crude prices, driven by fears of slowing demand in China and a wider unsettledness that has trailed the war in Ukraine. Against that backdrop, a debate has taken shape over whether the state should lower the tax on this winter's warmth, with consumer advocates pressing the case for the households least able to absorb the cost. Th
Heating Oil Prices Ease From Summer Peak but Remain Nearly Double Last Year's Cost
Elderly and fixed-income households may face a choice between heating their homes and feeding themselves this winter, according to the Consumers Association of Ireland.
Cheaper than June, but still almost double last year's price
Mark
So prices are down, but this isn't really good news?
Mimi
It's better than June, by about €250 a fill. But €1,248 for 1,000 litres compares with around €650 a year ago, so anyone refilling after a year is still in for a shock.
Mark
Why was oil left out of the VAT cut?
Mimi
The temporary reduction at the start of the year covered electricity and gas, not home-heating oil or solid fuels. The Government says it couldn't get a deal with the EU to include oil.
Mark
Who does that hit hardest?
Mimi
Rural households, where most people have no piped gas. Michael Kilcoyne warned that elderly people on fixed incomes may have to choose between heating and food.
Luke
That warning is his, and it's a forecast. The piece gives no data on how many households are actually in that position.
Mark
And the price figures?
Luke
They're averages quoted from one website, Oilprices.ie. Actual prices will vary by supplier and location, so treat €1,248 as a guide.
Mimi
The industry voices differ a little too. Kevin McPartlan expects a rush at the first cold snap, while Nicholas Hayes says demand is fairly low right now.
Luke
And nobody can say whether prices keep falling. The story ties the easing to worries about China and to Opec supply, and both could change.
Mark
So the thing to watch is the weather?
Mimi
That, and crude prices. A cold snap could bring a spike in demand, though McPartlan says companies are holding high stocks to handle it.
El Pulso
- A 1,000-litre delivery now averages about €1,248, down roughly 20pc since June but still nearly double last year's €650.
- Consumer advocates warn that pensioners and fixed-income households may have to choose between heating their homes and buying food this winter.
- Heating oil was left out of the temporary VAT cut on electricity and gas, and the Government says it could not win EU agreement to lower it.
- Fuel importers expect a rush to fill tanks at the first autumn cold snap, even as they stock up and crude prices steady with added OPEC supply.
- The price trend is downward for now, but whether it holds depends on the weather and on world oil markets.
Heating oil, the fuel that warms roughly 1.5 million Irish homes, has grown a little cheaper over the summer, yet it still costs almost twice what it did a year ago, so the easing offers more relief in the abstract than in the kitchen. The fall follows a global ebb in crude prices, driven by fears of slowing demand in China and a wider unsettledness that has trailed the war in Ukraine. Against that backdrop, a debate has taken shape over whether the state should lower the tax on this winter's warmth, with consumer advocates pressing the case for the households least able to absorb the cost. The question now is whether the first cold weather will bring the market's calm to an end.
Heating oil in Ireland has become cheaper over recent weeks, but not by enough to ease the worry of anyone who must fill a tank this autumn. A 1,000-litre delivery now costs an average of €1,248 nationwide, about €250 less than in June, yet still almost double the €650 it cost a year ago. With around 1.5 million households relying on the fuel, and winter approaching, many are already ordering.
The fall follows a drop in world crude prices, driven by fears that China's slowing economy will use less oil. Prices have been volatile since Russia invaded Ukraine in February, and wholesale costs had been climbing sharply before this easing.
Michael Kilcoyne, chairman of the Consumers Association of Ireland, wants VAT on home-heating oil cut, or removed altogether for people on fixed incomes. The temporary VAT reduction on electricity and gas left heating oil and solid fuels out, and many rural homes have no piped gas. He warned that elderly and fixed-income households could face a choice between heating their homes and feeding themselves. The Government says it could not secure an EU deal allowing a lower rate.
Fuel importers describe a market that is calm for now. Kevin McPartlan of Fuels for Ireland expects demand to surge at the first cold snap, when people rush to fill tanks, though companies are holding high stocks to meet it. Nicholas Hayes of the UK Ireland Fuel Distributors Association notes that demand is currently low and prices have fallen considerably. The coming weeks will show whether the first cold snap brings a rush and whether softer crude and extra OPEC supply keep prices falling.
Heating oil in Ireland has become cheaper over the past few weeks, though not by enough to spare anyone who has to fill a tank this autumn. A 1,000-litre delivery now costs an average of €1,248 nationwide, according to figures quoted on the Oilprices.ie website. That is about €250 less than in June, a drop of roughly 20pc. A year ago the same amount cost around €650, so the current price is almost double.
The gap matters because about 1.5 million households in Ireland use the fuel. Anyone who has not ordered oil since last year will be paying hundreds of euro more than they did then. With winter approaching, many people are already taking delivery.
The recent easing follows movements on world markets. Crude oil prices have been falling over fears that the Chinese economy, a very large consumer of oil, may be slowing. That has taken some pressure off wholesale prices, which had been climbing strongly. Prices have been volatile since Russia invaded Ukraine in February.
Michael Kilcoyne, chairman of the Consumers Association of Ireland, wants the Government to cut the VAT charged on home-heating oil. The temporary VAT reduction on electricity and gas products introduced at the start of this year did not cover home-heating oil or solid fuels. Most people in rural areas have no access to piped gas. "Home-heating oil is an essential commodity for people," Kilcoyne said. He warned that people on fixed incomes, the elderly among them, could face a choice this winter between heating their homes and feeding themselves. In his view the VAT should be reduced, and removed entirely for people on fixed incomes.
The Government says it could not secure a deal with the EU that would allow it to lower VAT on home-heating oil.
Carbon tax is another part of the bill. In May it rose by €19.40 on 900 litres of kerosene, meaning buyers now pay €93 in carbon tax on that quantity. The money raised is set aside to address fuel poverty and to fund measures helping communities switch to greener energy.
The fuel industry describes a market that is calm for now. Kevin McPartlan of Fuels for Ireland, whose members import oil, said demand has risen in recent weeks and will grow stronger as soon as the first cold snap of the autumn arrives. "When there is a cold snap there is a rush to fill tanks and there is a spike in demand," he said, adding that oil companies are holding high stock levels to cope. He said the crude market appears to have stabilised, particularly since members of Opec began increasing supplies.
Nicholas Hayes of the UK Ireland Fuel Distributors Association offered a slightly different picture of the present moment, saying demand is relatively low at the moment and that prices have fallen considerably in recent weeks. What to watch now is the first cold snap, which could bring a rush to fill tanks, and whether softer crude prices and extra Opec supply keep the fall going.
Citas Notables
Home-heating oil is an essential commodity for people.— Michael Kilcoyne, chairman, Consumers Association of Ireland
When there is a cold snap there is a rush to fill tanks and there is a spike in demand.— Kevin McPartlan, Fuels for Ireland
Quieres la nota completa?
Lee el original en Independent.ie ↗
Energy