Step 1 – Compare Oil Prices Online
The first step is to ensure you know the price you are looking to beat. Industry insiders claim that the suppliers add a minimum of 4p per litre to ensure that they make a profit. You can have a look at the current wholesale prices and see who gives you the closest price. You can find the quarterly published price report here.
We suggest using a Heating Oil comparison site like Fuel Tool. They provide a hassle free search tool which doesn’t require you to register as a customer to see prices. Other options are: BoilerJuice, CheapestOil, HeatingOilShop or HomefuelsDirect.
If you are so inclined, you can also opt for a 12 month fixed term price from someone like Craggs Energy.
Step 2 – Haggle down Prices
After you have done all your research and written down some of the best prices, you then have the option of ringing your local suppliers and attempting to haggle them down a bit.
Ask them if they can beat the quote you have, if they do, fantastic. If you don’t quite get the result you are after, just be polite and say that you are going to keep looking and might give them a call back. Continue the process with more suppliers, quoting the best price you’ve had and see who can beat it. You can knock a little off the actual best price you had, but this might not always be the best strategy, as you could miss out on a deal if you just gave them an honest price.
Step 3 – Time Your Purchase Right
The price you pay for your oil will fluctuate on a daily basis due to being directly influenced by the wholesale price of oil.
Timing is everything here. Summer time is often the best time to buy fuel as low demand drives prices down, with December often being the priciest.
Prices between July 2016 And July 2017 – Source: Boilerjuice.com
Never leave it too late. Emergency orders can often cost you quite a bit more. Get into a routine of checking your oil level regularly so that you can judge when to order your fuel. Some tanks come with remote digital displays, like the Watchman Sonic, other tanks will just rely on you using a dipstick and some will have a gauge on the outside.
BoilerJuice puts together a nice chart to show you the UK average home heating oil prices so you can plan when to order your fuel.
Step 4 – Buy In Bulk For Discounts
This step will take a bit of leg work, but is well worth the trouble if you can find a few neighbours to work with and group together to find the best deals for bulk orders.
Bulk buying as neighbours, or even as a whole village, will ensure a great deal with suppliers, as this is also in the interest of the supplier. They will save on vehicle fuel due to not making smaller deliveries to multiple sites.
You can set up an Oil Heating Club yourself or join one of the many which already exist. Oil-Club is one such club which covers many around the country.
Setting up is fairly straight forward, but it will require someone who is willing to chase quotes and organising members. 20 Members ordering around 10,000 litres is a good starting point to ensure a great deal. Simply, ask members in your club to commit to an amount and find the best quotes using the steps above.
Even if you just team up with one neighbour you can save a decent amount. Most suppliers are happy to do this as long as you live relatively close to each other.
Step 5 – Pay The Right Way
Paying by Direct Debit can be less troublesome in certain situations, but you won’t be rewarded for your loyalty.
Putting some cash aside each month is definitely the option we would suggest. It’s all about budgeting for the fuel you know you will have to purchase and sticking to that budget. Just work out how much you usually use per year and put the money away for when you need to place your next order.
Paying for your fuel with a credit card is foolish and some suppliers will charge you extra. Avoid this option at all cost.
CB7 Oil & Gas 