News From OilFiredUp
Stock Up On Heating Oil As Inflation Falls
26th June 2012
If the decline of oil prices hasn't put a smile on your face, this certainly will. Not only has the squeeze we have all been feeling on our income eased with cheaper motoring and heating oil, inflation has also fallen.
According to the Guardian the inflation rate dropped 0.2% to 2.8% in May, its lowest level in two and half years. It has been reported that the fall in oil prices is one of the reasons why Britain's inflation rate has descended. The ONS has stated that petrol prices have been the biggest factor behind the inflation decline as it fell in a single day by 4.5p, dropping to £1.37.
Talking about the times where inflation was at its all time high, the governor of the Bank of England, Sir Mervyn King, described it as a "ferocious squeeze in the purchasing power of take-home pay".
He said in a speech that took place earlier in the year: "Since 2007, increases in VAT, import prices and energy prices have together pushed up the price level by as much as 15%, squeezing real wages. As a result, we have now experienced the longest period over which real wages have failed to rise since the 1920s."
However, it has also been reported that Britain will be importing considerably less oil from the Middle East compared to recent times. Instead oil will be coming from Norway, who is benefiting from the recent discovery of oil in the North Sea. Due to this UK supplies are expected to deplete quickly in the next coming years although the Scandinavian country has millions of tonnes of reserves. With inflation low and the expectation of the UK's oil supply depleting, now couldn't be a better time to stock up on some heating oil as demand in the cooler months are sure to encourage a spike in prices.
According to the BBC 'The Bank of England has consistently said that it believes inflation will fall back to its 2% target. It is pinning its hopes on lower oil prices and import prices. Price rises have begun to slow in recent months and some energy companies have cut some bills.'
Currently we couldn't be in a better position to stock up on our heating oil to ensure that we have enough to see us through the winter months and at an affordable price.
'Stock up on heating oil as inflation falls' has been written on behalf of Oil Fired Up by RPM Fuels and Oil Pumps.