Heating Oil (NI) and Stock Market Prices

A question we are sent on an almost daily basis is "why is home heating oil not the same price as it was when crude oil was this price?".

Rather than look at crude oil, we will consider Kerosene prices which should give a more accurate reflection.

There may be discrepancies but the biggest reason for the difference is in the exchange rates (as oil is priced in dollars). Last November, $64 would have been just over £30. Today, $64 would be around £40. This sort of difference alone would mean oil priced at £300 this time last year, would be £400 today.

This website is completely independent from any oil supplier and would have no problems in highlighting any issues if that was the case.

However we will present the facts as clearly as we can and if you have any suggestions, feel free to contact us.

Display chart for the :

Stock Market and Home Heating Oil price trends
Since April 1, 2008,
the price differences between a litre of kerosene on the stock market
and a litre of kerosene delivered to your home are
Average: 9p.
Recently: 10p. (30/12/2008)
Smallest: 3p. (09/05/2008)
Biggest: 13p. (24/12/2008)

Periodically, we will compare home heating oil prices with stock market prices.
Also dollar exchange rates will be taken into account as oil is priced in US dollars
As the cost of oil goes up, so does the cost of getting it to your home.

What happens when you do not consider the exchange rate?

Stock Market and Home Heating Oil BEFORE exchange rates
The chart above displays oil in cents per litre with home heating oil in pence per litre.
The trend looks different - like decreases in the price of oil on the stock market are not being passed on. Closer to the truth is that drops in the price on the stock market are not being felt because of increases in the value of the dollar.

Our working out

To take into account currency fluctuations, US$ prices have been converted to UK£
US Dollar prices per barrel converted to GBP using daily rates data from RatesFX
A barrel of oil is equal to 42 US gallons or 158.97 litres (1 USA Gallon=3.785 litres)
Amsterdam-Rotterdam-Antwerp (ARA) Kerosene-Type Jet Fuel Spot Price FOB figures taken from EIA (Official Energy Statistics from the U.S. Government)
It may or may not be the best or most accurate indicator to compare with home heating oil prices.
Home heating oil average prices calculated using around 28 quotes from across Northern Ireland.


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