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The cost of home heating oil

  • 05-09-2022 5:41pm
    Registered Users Posts: 2,749 ✭✭✭

    What should we expect in the coming months?

    I hear that gas is going up but I also hear that oil may be going down.

    Is the price of home heating oil not tied to that of gas ?

    Obviously global politics (if an illegal invasion of an independent country can be so termed) will have the last say ...


  • Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 28,346 Mod ✭✭✭✭Cabaal

    Right now, you can expect to pay double what you paid for the same amount of oil as you did last year.

    6 months from now, who knows. Might be the same, might be slightly less, might be 50% more.

  • Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 64,266 Mod ✭✭✭✭L1011

    The cost of home heating oil is tied to crude oil; not gas.

    I wouldn't be expecting any further price drops until/unless the war ends; but trying to predict the market is impossible

  • Registered Users Posts: 687 ✭✭✭Subzero3

    When (or when it's finally acknowledged) the recession hits, OPEC will reduce output keeping price's stable.

  • Registered Users Posts: 795 ✭✭✭who what when

    Very informative, thank you

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  • Registered Users Posts: 1,502 ✭✭✭dohouch

    What is refining margin. Who get it? Shell , Total etc Is it the profit of the refinery owner? Why should it vary?

    @walterking Thanks( oil prices for Dummies🤑)

    We're not suffering, only complaining 😞

  • Registered Users Posts: 8,913 ✭✭✭Danno

  • Registered Users Posts: 1,297 ✭✭✭walterking

    Refining margin is the difference between the refined price of a fuel and the barrel of oil.

    Refining uses a lot of gas and usually runs on tight margins.

    But it's a commodity and with diesel power stations running again because it's much cheaper than gas and also many industrial users moving back to oil from gas where they can, diesel and kerosene is in huge demand and refineries are working flat out - demand outstrips supply so refineries put prices up and people bid it up further.

    Last July diesel margins were $5. The average is $10-$12. It's currently $55 but dropping a little ($62 last week) and may drop further as more capacity comes on stream.

    Yes, the refiners (Exxon, Valero, Neste and others) made gigantic profits this year.

    It will eventually all calm down. Europe is only 10% of the world's population and it is financially worthwhile to bring fuel from India, china and USA and as that feeds through prices will become more normal.

    That in turn will calm gas prices and then inflation will fall.

    When? No one knows, but I suspect 6-9 months

  • Registered Users Posts: 1,297 ✭✭✭walterking

    Not a great site.

    This is a lot better. Remember where they show gallons, they are us gallons (3.8 litres)

  • Registered Users Posts: 516 ✭✭✭MakersMark

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  • Registered Users Posts: 1,227 ✭✭✭eeepaulo

    Budget at end of month, has there been any talk about reducing carbon tax/VAT?

  • Registered Users Posts: 413 ✭✭rothai

  • Registered Users Posts: 441 ✭✭phester28

    quite the opposite. The carbon tax is going up as it was previously passed by the greens as part of law to yearly increment it