What are the Factors that Affect Home Heating Oil and Why?

Home heating oil prices can fluctuate for a number of different reasons, here we will explain each factor and why this affects heating oil Shropshire prices. 

1. Weather

Harsh weather can create issues for oil production due to freezing temperatures, this can affect crude oil and delay the transportation of oil. When oil demand is high and supply is low prices increase.

2. Demand

The key factor for why heating oil increases in the winter is demand. Keeping your home warm is vital for your health and your family's comfort, most people will use more heating during colder weather. This means the demand for heating oil will increase in autumn and winter, which results in higher prices.


OPEC –(The Organization of the Petroleum Exporting Countries), decided whether to increase or decrease oil production depending on demand. If OPEC decides to decrease oil production, heating oil prices usually rise.

4. Conflict in oil-producing countries

Conflict in oil-producing countries can create issues for heating oil prices, as this can cause a drop in supply and issues with transportation due to sanctions and wars.

5. Vat rate fluctuations

If V.A.T rises it affects everything that we pay tax on, which means price rises would also affect heating oil.

6. Distribution and delivery costs

A lot of oil is exported from abroad which means we have to distribute it to reach our country if delivery to distribution costs rise we can end up paying more for heating oil.

7. Refining costs

If there is a dramatic change in Equipment needed, wages and cost of running the refinery increases we may see a rise in oil prices.

8. Exchange rates

As a larger percentage of oil is brought aboard exchange rates play a part in potential heating oil price rises. If the country's currency exchange rate drops oil prices rise as the country will get less for their money than before.

9. Crude oil prices

As crude oil is needed to produce heating oil, if the price of crude oil rises so will the price of heating oil.