A thousand litres of home-heating oil now costs about €1,248 across Ireland, roughly €250 less than in June but still near double what households paid a year ago. The easing comes from a faraway worry, that China's economy may slow and draw down the world's appetite for crude, yet for the 1.5 million Irish homes that depend on oil, relief on the wholesale market has not yet reached the kitchen table. As autumn's first cold arrives, the question is less about the price of oil than about who can afford to stay warm when it is needed most.
Home-heating oil prices ease from June 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.
Still almost double what households paid a year ago
Mark
So prices fell, but this isn't really good news, is it?
Mimi
It's relief from a high point. A fill is down about €250 since June, around 20pc, but €1,248 is still nearly double the roughly €650 of a year ago.
Mark
Why did it fall?
Mimi
Crude prices have slipped on fears of a Chinese slowdown, and Opec members have started raising supply. That eased wholesale pressure.
Luke
Worth noting the €1,248 is an average quoted by Oilprices.ie, one website. Individual deliveries will differ.
Mark
Who is hit hardest?
Mimi
Rural households with no piped gas. Michael Kilcoyne says the elderly on fixed incomes may have to choose between heat and food.
Luke
That's his warning, not a measured outcome. It's a forecast from an advocate.
Mark
Why not cut VAT on oil, as was done for gas and electricity?
Mimi
The Government says it couldn't get a deal with the EU to do it. Kilcoyne still wants it cut, and removed for fixed-income households.
Luke
And we don't know whether the Government will try again. The reporting doesn't say.
Mark
What about the cold snap?
Mimi
Kevin McPartlan expects a rush to fill tanks, but says stocks are high. Nicholas Hayes says demand is low for now.
Luke
So the two distributors describe things differently, and neither can say what prices will do if the weather turns.
El Pulso
- A 1,000-litre fill that cost about €650 last year now sits near €1,248, and the sting lands hardest on those who have not ordered since last autumn.
- Crude prices have slid on fears of a Chinese slowdown, easing wholesale pressure that had been climbing hard since Russia's invasion of Ukraine.
- The Consumers Association of Ireland is pressing for VAT to come off heating oil, warning that pensioners and fixed-income households may have to choose between heat and food.
- The Government says it could not win EU agreement to cut VAT on heating oil, leaving the carbon tax and VAT as unresolved burdens.
- Importers expect a rush of orders when the first sharp cold snap hits, and the market's calm may not last through winter.
A thousand litres of home-heating oil now costs about €1,248 across Ireland, roughly €250 less than in June but still near double what households paid a year ago. The easing comes from a faraway worry, that China's economy may slow and draw down the world's appetite for crude, yet for the 1.5 million Irish homes that depend on oil, relief on the wholesale market has not yet reached the kitchen table. As autumn's first cold arrives, the question is less about the price of oil than about who can afford to stay warm when it is needed most.
A thousand litres of home-heating oil now costs about €1,248 on average across Ireland. That is roughly €250 less than in June, a drop of around 20 per cent, but still close to double the €650 households paid at this time last year. For the 1.5 million homes that rely on the fuel, the drop offers only partial comfort, especially to anyone who has not ordered a tank since last autumn and is now facing a much larger bill.
The easing follows a turn on world markets. Crude prices have fallen on fears that China, a major oil consumer, may be slowing, taking some pressure off wholesale prices that had risen sharply since Russia invaded Ukraine in February. Industry voices describe a market that is calm for now. Importers say demand is rising and will surge once the first autumn cold snap arrives, though oil companies are holding high stocks to cope.
The harder question is who will carry the winter. Michael Kilcoyne of the Consumers Association of Ireland wants VAT removed from heating oil, which was left out of the temporary VAT cut on electricity and gas. Most rural homes have no piped gas, and he warned that elderly and fixed-income households may have to choose between heating their homes and feeding themselves. The Government says it could not secure EU agreement to reduce that VAT.
As the first sharp drop in temperature arrives, importers expect orders to rush in, and households will learn whether the easing in prices has done enough, or whether the Government will revisit the tax.
A thousand litres of home-heating oil now costs €1,248 on average across Ireland, according to figures quoted on Oilprices.ie. That is about €250 less than in June, a drop of roughly 20pc. It is still close to double the average of around €650 that households paid for the same fill at this time last year.
The gap matters most to the 1.5 million households that rely on the fuel. Anyone who has not ordered a tank since last autumn is likely to be surprised by the bill, which can now run to hundreds of euro more. With winter approaching, many people are already taking deliveries.
The recent easing follows movement on world markets. Crude oil prices have been falling over fears that China, a huge consumer of oil, may be heading into an economic slowdown. 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 VAT on home-heating oil reduced. A temporary VAT cut on electricity and gas products took effect at the start of the year, but it did not cover home-heating oil or solid fuels. Most people in rural areas have no access to piped gas. Mr Kilcoyne called heating oil an essential commodity and warned that people on fixed incomes, the elderly among them, will face a choice this winter between heating their homes and feeding themselves. He argued that VAT should be removed entirely for those on fixed incomes.
The Government says it was unable to secure a deal with the EU that would allow it to reduce VAT on home-heating oil.
Carbon tax is also part of the price. In May it rose by €19.40 on 900 litres of kerosene, so buyers now pay €93 in carbon tax on that quantity. The revenue is set aside to tackle fuel poverty and to fund measures helping communities move to greener energy.
Industry voices describe 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 strengthen once the first cold snap of autumn arrives. In his words, a cold snap sends people rushing to fill tanks and spikes demand, but oil companies are holding high stock levels to cope. He said the crude market appears to have stabilised, especially since members of Opec began increasing supply.
Nicholas Hayes of the UK Ireland Fuel Distributors Association offered a quieter picture, saying demand is relatively low at the moment and that prices have fallen considerably over the past few weeks.
What to watch is the first sharp drop in temperature, which the importers expect to bring a rush of orders, and whether the Government revisits VAT on heating oil.
Citas Notables
Home-heating oil is an essential commodity for people.— Michael Kilcoyne, 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
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