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PRESS RELEASES
25 June 2008
High Oil Prices
The retail price of home heating oil is influenced by the cost and availability of crude oil which has been elevated in recent months by strong demand, tight global supplies and geopolitical uncertainties. The added factors of a weak U.S. dollar, investment flows from pension and hedge funds into commodities has seen an unprecedented gain in crude oil prices in the past year of over 130%. David Blevings said, “All sources of energy are under pressure due to the rising cost of crude oil and after a period of relatively ‘cheap’ energy prices the short to medium term for energy appears high. We are only too aware of the increased energy costs across the board and as a responsible industry we want to offer services and products that may help minimise the impact of increased prices on consumers. We are suggesting that consumers should consider using a pre-payment system such as direct debit/giro or PayPoint to help budget for their fuel requirements this winter”. Responding to comments about further regulation of fuel companies and establishing co-operatives which would enable local communities to pool their resources in order to bulk buy fuel at a reduced rate, David said, “The industry is open to any new and innovative ideas that minimise costs to consumers but local distributors have no control over increasing wholesale costs. We are already in discussions with NEA, DETI and the Fuel Poverty Task Force to research ideas and initiatives that will minimise the impact of these unprecedented increases”. “Local oil distributors operate in a fiercely competitive market with over 250 suppliers and are regulated by market forces. The latest Sutherland figures show that the consumer in Northern Ireland buys oil home heat 5% cheaper than the GB average and 10% cheaper than consumers in the Republic which reinforces the competitive nature of the industry locally”, added David.