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Oil Industry expresses Suprise at Consumer Council comments
7th November 2008
The Northern Ireland Oil Federation has expressed surprise at earlier comments by the Consumer Council that heating oil customers in Norther Ireland may be paying over the odds when filling their tanks.
The Council had expressed concern that recent drops in the cost of crude oil had not yet been fully passed on to customers in the province. A spokesperson for the Council had said that in the event the organisation did not receive the assurances it was seeking from the Northern Ireland oil industry, it would consider making a super-complaint to the Office of Fair Trading.
David Blevings, Spokesperson for the Northern Ireland Oil Federation which represents some of the province's fuel distributors said, “While crude oil price movements can be an indicator of trends there is no direct correlation with retail price. The retail price of home heating oil is based on the cost, demand and availability of refined product. Refined products are sold in dollars and the strong dollar and general tightness in supply has had an adverse effect on the retail price in recent weeks”.
“The latest Sutherland figures published in October 2008 shows that consumers in Northern Ireland buy their home heat product at 4% below the average elsewhere in the United Kingdom. This proves the competitive transparent market local distributors operate in. Distributors only pass on increases or reductions as dictated by the international market and have no control over wholesale costs. We will extend an open invitation to the Consumer Council today to meet and explain the mechanics of the international oil market to allay their concerns”.
Research undertaken today by OilFiredUp.com appears to verify the Federation's claims.
Whereas a 900 litre fill in Northern Ireland could cost as little as £387.45, the same quantity of Heating Oil in the West Midlands could cost up to 23% more at £473.41. In South West England, the cost was a more modest £413 and in Scotland, £411.42 including a £5 discount for cash with delivery.