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Domestic Heating Oil - Getting a Good Deal and Other Tips


The information below is given in good faith, subject to the terms of the website's Disclaimer of Liability.

The first part of the page deals with oil prices and what you can do to ensure you buy at a competitive rate. The second part of the page has some guidance and tips for those new to oil-fired boilers.

A Rapidly Changing and Competitive Market

We are all familiar with the fact that the price of oil in world markets is constantly changing. Heating oil distributors buy their stocks in this market so their prices too are constantly changing, sometimes on a daily basis. However, at least in North East Essex, there are sufficient distributors to make for a competitive retail market. More than twelve years experience of purchasing heating oil has demonstrated to me the worth of seeking competitive quotes each time before placing an order. The difference between the best and worst quotes for 1,000 litres can be as much as £30 to £40. Read on to find how you can save money by not paying more than you need to each time you order.

Specification

It is vitally important to identify the correct type of fuel oil for your boiler. Make sure you clearly specify this when seeking quotes and placing orders. Most domestic oil-fired boilers are set up for 28 Seconds Burning Oil, also described as Kerosene C2 (BS 2869#C2), Regular Burning Oil (RBO), Home or Domestic Heating Oil.

Quantity Discounts

Whenever possible place an order for at least 900 litres (approx 198 imperial gallons). The price break-point has been reduced by most distributors from 1,000 to 900 litres and there are worthwhile savings to be made by ordering at least this quantity. The price does drop again for 2,000 litres or more but the additional savings are much less. Unless you already have a large tank and the quoted price is exceptionally good, the benefits of ordering 2,000 litres or more are debatable.

If your tank is sound but not large enough to take 900+ litre top ups, the quantity discounts will probably not justify installing a larger tank. If you have a metal tank that's on its way out, replacing it with a plastic tank of around 1,300 litre capacity is a good option. This will enable you to order at the 900 litre rate without having to run the tank too low. Replacement, including tank and installation, will cost about £650 (2002 prices) but if you are reasonable competent at D-I-Y you can buy a good quality tank for less than half that price.

Getting Competitive Quotes

The key to getting a good deal is to seek competitive quotes from several distributors EACH TIME before you place an order. Potential savings are generally between £20 and £30 or more each time you order.

I have regularly found that a supplier who offers the best price on one occasion may be among the most expensive next time around. There is no consistent pattern. That is why I telephone round each time and do not subscribe to a budget plan or top-up delivery scheme.

With a little preparation getting several quotes does not take long. I use the table shown below which has the specification and telephone numbers readily to hand and spaces for entering the quotations obtained. Most of the calls are at local rate or free and with a business-like approach it doesn't take long to work through the list. If you live in the Colchester area you can print out and use the form below. It is suggested you keep your chart up to date by checking possible suppliers and their telephone numbers in Yellow Pages from time to time.

Local Retail Distributors and Quotation Form

Date of Quotations: ___________________________________

Specification: Please quote for 28 Seconds Burning Oil for delivery to Colchester CO2 area at your 900 litre rate.

SupplierTelephonePre-VAT per litre900 litres + 5% VAT
A D FUEL OILS01206-865875  
BLACKWATER FUELS01621-868868  
CASTLE LIQUID FUELS01371-850172  
CPL PETROLEUM0845-815-2477  
CPS PETROLEUM0845-815-2562  
EMO (Shell)0800-685-685  
FUELCARE01376-552227  
GOFF (Colchester office)01206-761861  
HARDY CRASKE0800-731-0612  
LINTON FUEL OILS01375-383650  
SOUTHERN COUNTIES FUEL0800-619-8707  
TOTAL BUTLER0845-815-2524  

NOTE: Goff Petroleum have some useful information on heating oil and oil-fired boilers on their website at www.goffpetroleum.co.uk

Prices as at early March 2008

Oil prices continue their inexorable rise. A friend ordered in early March after obtaining six quotes. The cheapest (Goff Petroleum) was 48.20p a litre before VAT. The VAT inclusive price for 1,000 litres amounted to £506-10. Ouch!

Prices as at 13th December 2007

Oil prices have reached a very uncomfortable all time high due to factors such as strong world demand and political instability, with no real prospect of a future fall in the price. Quotes obtained on 13th December ranged from 46.45p (Goff Petroleum) to 41.50p a litre before VAT at the 1,000 litre rate. The VAT inclusive price for 1,000 litres ranged from £487-73 to £435.75, a variance of £51-98. Best price was from Linton Fuel Oils. Most of the quotes obtained clustered around 43.5p per litre before VAT. My order on this occasion, for 1,000 litres at the most competitive rate available, cost £142-27 more than my previous order in February, an increase of 48.5% in only ten months. The increase since my order in January 2004, less than four years ago, is 128%.

Prices as at 12th February 2007

Thankfully prices on have eased over the last month or two. Quotes obtained on 12th February ranged from 32.65p (Southern Counties Fuel) to 27.95p a litre before VAT at the 1,000 litre rate. The VAT inclusive price for 1,000 litres ranged from £342-82 to £293-48, a variance of £49-34. Best price was from Goff, closely followed by EMO. Castle and CPS were also competitive at under 29p per litre.

Prices as at 10th April 2006

Quotes obtained on 10th April ranged from 35.95p (A D Fuel Oils) to 33.95p a litre before VAT at the 1,000 litre rate. The VAT inclusive price for 1,000 litres ranged from £377-48 to £356-48, a variance of £21-00. Best price was from EMO (Shell), closely followed by CPS Petroleum and Linton Fuel Oils. As at 20th April, those buying 500 litres are having to pay around 39p a litre before VAT.

Prices as at 2nd December 2005

Quotes obtained on 2nd December ranged from 33.95p (Arctic and CPL Petroleum) to 30.50p a litre before VAT at the 1,000 litre rate. The VAT inclusive price for 1,000 litres ranged from £356-48 to £320-25, a variance of £36-23. Best price was from Goff Petroleum, closely followed by CPS Petroleum, Linton Fuel Oils and EMO (Shell).

Prices as at end September 2005

I am advised by someone working for a fuel oil distributor that over the last few weeks prices for a typical 900 litre delivery of kerosene have risen as high as 37.50 ppl. During the third week in September they dropped to approximately 31.25 ppl. After that the general market trend was again upwards, with a price of 33.00 - 34.00 ppl at the end of September.

On 4th October the best 1,000 litre rates available were around 36ppl. For 1,000 litres inclusive of VAT the cost works out at £378, compared to £191-10 in January 2004; a rise of 97.8%.

Prices as at 7th March 2005

Quotes obtained on 7th March (excluding suppliers whose 'phones were constantly engaged: - Goff, Shell Direct and Southern Counties) ranged from 27.00p to 29.95p a litre before VAT at the 1,000 litre rate. The VAT inclusive price for 1,000 litres ranged from £283-50 to £314-47, a variance of £30-97. CPL were unable to deliver for 10-14 days and were therefore unable to quote a price. Best price (plus early delivery) was from Linton Fuel Oils.

Prices as at 22nd October 2004

Oil prices were at a historic high due to political uncertainties which were having a major impact on the market. Quotes obtained on 22nd October ranged from 26.67p to 29.38p a litre before VAT at the 1,000 litre rate. The VAT inclusive price for 1,000 litres ranged from £280-04 to £308-49. Quotes obtained nine months earlier, on 14th January 2004, ranged from 18.20p to 20.55p a litre before VAT at the 1,000 litre rate; the VAT inclusive price for 1,000 litres ranged from £191-10 to £215-78. During this period the average price rise amounted to 44.6%.

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New to an Oil-Fired System?

The following guidance, tips and hints for those new to an oil-fired heating are based on 12+ years personal experience of owning and operating an oil-fired boiler. As before, my website Disclaimer applies.

Boiler Servicing

It really is worth having an oil-fired boiler serviced regularly by a competent boiler engineer. This is one area where the old adage "if it ain't broke don't fix it" is not the best advice. Good reasons for having your boiler regularly serviced include the following:

How often? Assuming you are burning 28 Seconds Burning Oil and your boiler is in reasonably good condition, once a year should be quite sufficient. If your boiler is set up to burn a heavier grade of fuel oil it may be necessary to have the atomiser nozzle and other items checked twice a year, but seek advice.

When? Try to arrange for your annual service to be carried out between the beginning of June and the end of August. Your boiler engineer will be under less pressure during these months and better able to agree a date and time most convenient to you. Also your boiler will then be in peak condition, ready for the start of the heating season. For reasons which are explained later, arranging an early morning appointment has advantages.

Can I do it myself? Unless you are a trained boiler engineer with all the right equipment, the short answer is 'no'. For example, part of the service involves using a gas analyser to check combustion efficiency and adjusting the air settings. Unless you have this expensive instrument, know the relevant readings to be achieved and how to make the correct adjustments, the boiler cannot be set up to operate at its greatest efficiency. If not correctly adjusted it may also produce unpleasant and possibly dangerous fumes.

How do I find a good boiler engineer? Some engineers are employed by oil companies and distributors. If you contact one of these businesses for service or repair you will probably get whichever member of staff is allocated at the time - good or bad. Large companies charge large company prices because they have large company overheads. Large companies will push you hard to sign up to an annual maintenance contract or insurance scheme. Large companies are not noted for looking after individual customers - you are only one of hundreds or thousands of customers. Other engineers are employed by firms of heating engineers or plumbers. If it is a small family business with a good local reputation this is one possibility. My favoured choice is the self-employed, one man business, boiler engineer. He has low overheads and can offer competitive rates. Running his own business he tends to have initiative and be well motivated. As a one man business your custom is important to him - he knows that putting bread and butter on the table for him and his family depends on looking after you. He can also operate more flexibly - he doesn't have to work to big company policies and rules. Yellow Pages is a lottery - personal recommendations are what you must look for. Find out from other people in the area who provides a good, competent and competitively priced service. In my experience finding a good self-employed boiler engineer is definitely the way to go.

How long does a service take? Provided there are no problems, an annual service usually takes not more than an hour or an hour and a half.

Preparing for a service. The evening before, make sure the area around the boiler is clear so that the engineer has good access and space to work. Keep the boiler on until 20 or 30 minutes after the last bath has been run. Then turn the boiler off so that it does not fire up next morning. With a morning appointment and a well-insulated hot water tank, you should have sufficient hot water to see you through until the service has been done. Your engineer will appreciate not having to work on and in a very hot boiler and risk injuring himself.

What's involved in a service? The combustion chamber of the boiler will be opened up, the baffle plates removed, and the interior scraped and vacuumed to remove any deposits which have built up over the previous year. The flue to the chimney should also be checked for deposits and obstructions such as bird nest debris which may have come down. The burner unit will be withdrawn from the boiler and the atomising nozzle replaced with a new one. Items such as ignition components and the fuel pump will be checked before the boiler is fired up. The final part of the operation is analysing the combustion gases and adjusting the air supply setting to ensure full combustion of the fuel for maximum efficiency. This is essential to achieve the most economical running. While the engineer is with you it is suggested you also ask him to quickly check over the condition of your oil tank.

How much will it cost? Expect to pay an independent boiler engineer about £55 to £65, including the cost of a new nozzle and VAT, but check the charge before you commit yourself.

What Can Go Wrong with Oil-Fired Boilers

There are a relatively limited number of things to go wrong with an oil-fired boiler. That being said, it can occasionally prove quite difficult, even for an experienced engineer, to track down the cause of an intermittent fault such as frequent lock-outs. My engineer adopts the very sensible diagnostic approach of only changing one component at a time until the problem is traced, and only charges for those replacement components which are proved to be necessary.

Faults may be due to a relatively cheap component such as a capacitor. More expensive components, around the £70 to £100 mark, which can fail are transformers, fuel pumps and control boxes. It is rare for more than one component to fail at a time .

One has to question the cost of repairs quoted by companies trying to frighten people into signing up for relatively expensive annual maintenance contracts. For some people the security of a fixed price annual contract is important. However, it should be remembered that insurance and maintenance contracts usually have various exclusions and conditions hidden in the small print. Also, such contracts offer good profit margins for their providers which is why they promote them so actively - and at the end of the day it is the customer who pays. If you can keep a little money in the bank for a rainy day and live with the occasional unexpected bill, the likelihood is that it will be significantly cheaper in the longer term to pay as you go and not tie yourself into such a contract.

Heating System Water Treatment

Check that the water in your central heating system has been treated with a good quality treatment such as Fernox MB-1. This prevents corrosion and the formation and build up of sludge in radiators and the bottom of the boiler. It can also improve the service life of the circulation pump. Failure to use water treatment can lead to expensive problems such as leaking radiators and the need to replace them, and reduce the life of the boiler itself. If you do decide to add a treatment yourself, make very sure it is added to the small central heating header tank in your loft, not the larger cold water tank - you don't want to poison yourself and the family!

Oil Tank Care and Maintenance

Your oil tank needs a little care and maintenance as well as your boiler - but thankfully not very much.

Steel Tanks: The biggest potential problem arises if you have a steel tank - as I did previously. It is worth carefully checking the tank every 6 to 12 months for signs of corrosion and any leaks. Special materials are available to temporarily seal small leaks, but it is best to avoid the problem arising in the first place. Apart from the cost of oil leaking from the tank there is the serious matter of contamination of the surrounding ground and any nearby watercourses. Some people have the time and motivation to regularly paint their steel tank before rust appears but it is the sort of task where good intentions tend to remain just that until serious corrosion has set in. If you are installing a tank for the first time, or replacing a steel tank, I would have no hesitation in recommending a good quality plastic tank. Any extra cost is well worth it as you will have no painting to do and no corrosion problems.

Stop Cock and Filter: At one end of the tank you will find the oil feed pipe running to the boiler. This should be fitted with a cock (valve) so that the oil supply can quickly be turned off, for example when cleaning the filter or during boiler servicing. Between this shut off valve and the boiler you should have a filter. This is important. Even the very smallest particle of dirt or rust can permanently damage the precision engineered barrel and plunger of the oil pump on the boiler and/or block the very fine oil atomising jet. In each case the item will normally have to be replaced, necessitating the call out of your boiler engineer and avoidable expense. A proper filter costs only a few pounds and should prevent both these problems.

Filter Types: There are two main types of filter. One has a clear plastic bowl, with a fine nylon gauze filter inside. With this type you can check the filter without dismantling it and when necessary you can unscrew the bowl to clean the gauze filter (use heating oil for this). A potential disadvantage is the risk of leaks between the top of the clear plastic bowl and the metal body onto which it screws. My boiler engineer favours the all-metal type enclosing a paper filter element.

Sight Gauge: At the same end of the tank, where the oil feed pipe runs to the boiler, there is normally a sight gauge for you to check the oil level. At the bottom of the gauge should be another, smaller, cock or valve. Some people leave this open so that the sight gauge always gives a true reading. This is not good practice nor wise. If the cock is left open and the sight gauge gets accidently knocked or damaged, you may lose a large quantity of oil and cause considerable environmental damage. Only open the cock while you are checking the level, then close it again. However if you check the level without opening the cock you may have far less oil than you think - perhaps even an empty tank!

Oil Tank Diagram

Condensation: This, I understand, is more of an issue with steel tanks. When the temperature drops, as at night, water vapour in the atmosphere can condense on the inside of your tank. As water is heavier than oil, the condensation runs to the bottom of the tank and over a period of time builds up. Ideally the end of the tank from which the oil feed pipe runs to the boiler should be fractionally higher than the other end, as in the diagram above. The normal practice with steel tanks is to have a water drain-off cock at the opposite end to that with the oil feed pipe. The pipe with the water drain-off cock is set at the lowest possible level in the tank. About once a year a small sample should be drained off from the tank into a glass jar to see whether any water is present. If it is, the water needs to be drained off in small quantities, each draw-off being checked until a very small quantity of oil is seen floating on top. Then firmly close the cock and refit the plug or stop end, if there is one, in the end of the drain pipe. I have noticed that some plastic tanks, like mine, do not have a boss for a water drain so can only assume that condensation is not normally a problem with smaller domestic plastic tanks.

Regulations: Government regulations now cover such matters as the siting of oil tanks and requirements for the bunding (enclosing a tank within a larger tank or bund to contain accidental leaks or spillages) of larger tanks. Recommendations for the siting of domestic oil tanks are contained in British Standard BS 5410 Part 1 1997. To find what this means in practical terms I suggest you go to the publications page at www.oftec.co.uk and view leaflet TI/131 'Technical Advice on the Siting of Class 1 type Oil Storage Installations for Single Family Dwellings' (Issue 6, Jan 2005). For further information you can of course do some Google searches.

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Page updated: 25 MAY 2008