HOME HEATING OIL prices have climbed by 15% since the start of September.

It looks set to be a tough winter for the more than one in three Irish homes depending on oil for heating, with prices today over 70% higher than they were this time last year.

Data compiled by oil price comparison websites CheapestOil.ie and OilPrices.ie indicate 500 litres of home heating oil costs about €100 more now than it did just two weeks ago on Monday 31 August.

The Society of St Vincent de Paul (SVP), Ireland’s biggest charity supporting people in poverty, told The Journal this morning that it has recorded an increase in requests for assistance related to energy costs.

“As the full impact of rising energy costs has not yet been felt…there is likely to be a further increase in energy-related requests for assistance over the coming months,” SVP said.

After spiking last spring following the US attacked Iran, Irish home heating oil prices moderated early in the summer. However, they have been climbing since then, and there has been a steep increase in the past two weeks.
CheapestOil.ie’s price tracker shows the average price nationwide has soared from €698 on Monday 31 August to €795 today. OilPrices.ie puts today’s average price at €797. The price comparison websites build their prices from what is charged by local suppliers around Ireland.

Several local oil suppliers said this morning that they have been busy with new orders in recent days, as they always are at this time of year.

CheapestOil’s Michael Toner said: “This time the price rises are due to stock market fluctuations and whilst rising gradually, there hasn’t been the sudden shock of a declaration of war that made bigger headlines and produced massive demand.”

“Overall this summer has been quieter than usual likely due to the warm weather so we feel most people are able to hold off buying, but it is hard to see prices coming down dramatically.”

Under pressure

The increase in heating costs comes at a time when electricity prices are also rising. Three of the country’s biggest suppliers – SSE Airtricity, Bord Gáis and Energia – have announced increases this month.

The government will be under political pressure to alleviate the impact of higher energy costs on households in next month’s budget. Simon Harris, the finance minister, has said he is “particularly worried” about home heating oil and is considering whether it could be separated out from the planned increase in carbon tax on climate-polluting fuels. The government is facing calls to reduce the VAT on heating oil from 13.5% to 9%.

International oil prices jumped on Monday as Saudi Arabia closed a key pipeline and war in the Middle East continues. Brent crude was up 3% to $107 per barrel.

In Ireland, rural homes disproportionately use oil for heating.

With reporting from AFP.