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r thritis

Heating Oil Supply Problems

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Has anyone tried getting a delivery of heating oil this week - there seems to be a supply problem, presumably following last week's bonfire in Hemel H. Its very difficult to get any delivery before the new year. All the small local suppliers around us have been bought out recently by Total Butler - now they can't meet the demand.

A company called Crown Oil, a nationwide service based in Manchester can deliver sooner, but are charging about 15p/litre more than the going rate - blatent profiteering. I hope their customers will remember this when supplies ease up again.

Edited by r thritis

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Guest magnoliawalls

Has anyone tried getting a delivery of heating oil this week - there seems to be a supply problem, presumably following last week's bonfire in Hemel H. Its very difficult to get any delivery before the new year. All the small local suppliers around us have been bought out recently by Total Butler - now they can't meet the demand.

A company called Crown Oil, a nationwide service based in Manchester can deliver sooner, but are charging about 15p/litre more than the going rate - blatent profiteering. I hope their customers will remember this when supplies ease up again.

Good grief! A company acting in their own interest and increasing prices! Just when supply got tighter too, and demand temporarily increased as people were reminded last week that they are vulnerable to supply shocks. Is the 15p/litre over what the going rate the last time you purchased heating oil?

When you see road humps laid down one week and removed the next, or reacting to underused sports facilities by raising the prices you know what kind of organisation you're dealing with.

The council clearly don't understand supply and demand :)

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A company called Crown Oil, a nationwide service based in Manchester can deliver sooner, but are charging about 15p/litre more than the going rate - blatent profiteering. I hope their customers will remember this when supplies ease up again.

Why do you think they have oil left?

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i work in a petro chemicals company,

and it quite simply is the nature of the business!

Supply & demand levels = determined price!

Unless your on a contract of course... ;)

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I went into a store in Reading a while ago. At the till I was asked if I would like a store card. I thought I would have a bit of fun.

'What's the interest rate?' I said. The woman behind the counter seemed a bit surprised by my blunt enquiry. She said, 'I think it's about 29%'

'29%!' - I must admit I shouted this out a bit - so the people in the queue behind me could hear. 'Do I look like a down and out? Do I look like I am so desperate to borrow money that I would borrow it off you - just to shop in this store - at a rate that is higher than I would expect to pay at some back-street low-life moneylenders?

She gibbered a bit and I ended up sort of apologizing for my outburst but my final gift to her was 'Tell your boss not to ask you to insult your customers by offering interest rates that are frankly obscene.'

I didn't do it to upset the woman serving me - I did it because I wanted her to tell her boss 'you know some people get quite upset at the interest rate we charge on our store cards. They seem to think we're taking the p*ss.'

If there are less supplies they have to increase the price to make the same money on less stock. You cant stop the laws of supply and demand in a market acting like a market. Houses is interesting, because demand has shifted from FTBers to BTLers, and demand has gone up because of HPI and bubble mania in an imperfect market.

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Is the 15p/litre over what the going rate the last time you purchased heating oil?

The council clearly don't understand supply and demand :)

No - the price other companies are currently charging now.

It's not just a question of supply and demand. In the short term (i.e. over the next week) they effectively have a monopoly. Exploiting a monopoly is not a reasonable business practice. It's the same principle as ticket touts outside a concert venue - they would argue supply and demand too - I see them as leeches.

Edited by r thritis

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No - the price other companies are currently charging now.

It's not just a question of supply and demand. In the short term (i.e. over the next week) they effectively have a monopoly. Exploiting a monopoly is not a reasonable business practice.

Start your own company and buy oil direct from the supplier? Everything has a price, and the price is determined by supply and demand, if there is limited supply from the suppliers and demand stays the same, the price will naturally go up because there is less oil. Price goes up, which naturally lowers demand.

Its how business works.

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Start your own company and buy oil direct from the supplier? Everything has a price, and the price is determined by supply and demand, if there is limited supply from the suppliers and demand stays the same, the price will naturally go up because there is less oil. Price goes up, which naturally lowers demand.

Its how business works.

The demand for heating is determined by the weather conditions not by the price. Its not really something you can choose to do without. Competition between suppliers ensures that prices are held at a reasonable level. In this instance there has been a sudden removal of competion for supplies in the next week.

This is why there is a monopolies commission.

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Right now the price is being determined by panic-buying by all the plonkers who don't believe there are other fuel supply depots than Hemel.

You're right that there is an element of that, but I think there is less panic buying of heating oil for this reason: The more you buy, the less you pay. Its very uneconomic to buy a small amount. unlike petrol.

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Isn't it common sense to buy heating oil in the summer so that you don't run short when it gets cold and everyone wants some?

Indeed, this is the way the market normally works, particularly in Germany. But recent price rises have been so steep that people have been putting purchases off, either because they think the price will go down or they just can't afford it at same time as summer holiday etc.

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Didn't I read that Pilkingtons switched from burning gas to oil. Maybe they are not the only ones adding to demand.

You are correct but it is not a significant amount. They would be burning heavy fuel oil rather than heating oil and the fuel oil market is fairly oversupplied and you would need to buy at least couple of 30,000 tonne cargoes to do much to its price relative to crude. I heard they had bought about 150 tonnes or something.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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