2015 looks like a very good year for the oil heating industry as well as customers. The sales of oil boilers have reached a five year high while oil prices are dipping to a six year low. From January to October of this year purchases for new energy efficient condensing boilers are up by 9% compared to the same period last year. This is the highest level since 2010 and the demand has continued to be particularly strong during the summer months.
In England and Wales, the average selling price for kerosene has gone down to around 35ppl in September. This is the lowest price point since the autumn of 2009 and almost 50% cheaper compared to the peak in prices in the spring of 2013.
According to the director general of OFTEC, Jeremy Hawksley the growth in boiler sales is excellent news for boiler manufacturers as well as heating installers. With the strong three quarters result and the positive feedback from technicians, it is expected that there will be plenty of work around. The low prices of oil have clearly benefited oil-using consumers because they are now saving several hundreds of pounds from their heating bills.
Compared to other major heating fuel, oil is by far the cheapest with typical annual costs currently at £793. It is 48.7% cheaper than LPG. Boilers running on oil are 50% less expensive than electric storage heaters and 24% cheaper than mains gas boilers. Users of oil heating have also benefitted directly from the fall in the prices of crude oil because unlike other fuels, the price cut on oil has been passed directly to households. Predicting the future of kerosene prices can be difficult but it is very likely that prices will not increase because the demand for crude oil has remained low and there is continued oversupply.
On the other hand, proper Boiler Servicing makes a big difference in the fuel efficiency of the boiler. A boiler that is serviced regularly also tends to have a longer service life. Make sure though that Boiler Servicing is provided by competent and certified boiler engineers for safety.