Jump in Price of Heating Oil

CBYR1983

Got 500l of the gas oil about a month ago for €360. Now price is €400. 11% increase in a month? Not ready to refill again mind you but always looking to hedge.

What's going on? Are we being fleeced?

Of course the oil industry want us to think there is no oil left and all the macroeconomic factors are going the wrong way,etc.

Same product cost €240 at the start of 2009. Max €40 carbon tax levied since then surely.

Jaysis, this country...

Mr Cawley

Yeah that's exactly it. Barrel rising sharply and of course by the time it gets to us everyone's taken their cut, added on tax/weather whathaveyou!

Any sophisticated hedging plans? A few oiler shares is all I can do!

ART6

Mr Cawley wrote: »

Yeah that's exactly it. Barrel rising sharply and of course by the time it gets to us everyone's taken their cut, added on tax/weather whathaveyou!

Any sophisticated hedging plans? A few oiler shares is all I can do!

And with Mr. Gormley's carbon tax rip off, the government have the biggest cut.

Buford T Justice

ART6 wrote: »

And with Mr. Gormley's carbon tax rip off, the government have the biggest cut.

Which is set to be doubled - And they say they're not targeting the people who can't afford it in the budget eh?

martin46585

CBYR1983 wrote: »

Got 500l of the gas oil about a month ago for €360. Now price is €400. 11% increase in a month? Not ready to refill again mind you but always looking to hedge.

What's going on? Are we being fleeced?

Of course the oil industry want us to think there is no oil left and all the macroeconomic factors are going the wrong way,etc.

Same product cost €240 at the start of 2009. Max €40 carbon tax levied since then surely.

Jaysis, this country...

it like every other commodity the world over, it all down to supply and demand..........

dnme

ART6 wrote: »

And with Mr. Gormley's carbon tax rip off, the government have the biggest cut.

The green's are trying to incentivise us to burn less oil. They are offering really generous grants to get your house better insulated.

CBYR1983

dnme wrote: »

The green's are trying to incentivise us to burn less oil. They are offering really generous grants to get your house better insulated.

Yeah, but where's the payback if you use half as much oil but the price doubles as a result of people using less oil? Why is this not a regulated industry? There's no way they get new supplies in every week. They must be hedged against market movements. It has to be local demand as far as I'm concerned - has anyone a close insight. Somebody's getting very rich off of us. The minute the weather turned prices rocketed. At the end of the day we need to burn something. I can't put up a wind turbine in the yard of a dogbox in Dublin 8, solar wouldn't boil my kettle given our climate and I don't have a claim on any bogs in the vicinity!

Buford T Justice

dnme wrote: »

The green's are trying to incentivise us to burn less oil. They are offering really generous grants to get your house better insulated.

Grants are great and all, but you need money in the first place to spend on getting it done, Thats a problem for me, and I'm sure a lot of other people too.

Andrew42

Can home heating oil be burned in a diesel car? I know you can run diggers/dumpers on the stuff but they've simpler engines(well, they used to have anyway). I know, I know, it's illegal but is it possible?

Mr Cawley

'' Why is this not a regulated industry?''

I don't know but I'd say it's because there's too much money at stake. It's BIG BUSINESS. Obama still needs BP in his country! Russia tax the bollox of oil exports and that's if they allow the export in the first instance! Iraq suspended exports when the Gov fell and Companies are waiting for contract ratification in the Kurdistan region. You tell me that in Russia and Iraq important people can't be bought with such big money!?

and just to add in regard to hedging and markets: Don't forget that Higher the barrel price the more money companies' resources are worth in the ground and what they can get it sold at market for! It's in their interest too! (Dollar and Euro ain't doing so well.)

As for the consumers' price, I've no insight.( we know Ireland's tax is much higher than the US ) Prob budget/weather/Whatever they feel like charging)

Stinicker

Andrew42 wrote: »

Can home heating oil be burned in a diesel car? I know you can run diggers/dumpers on the stuff but they've simpler engines(well, they used to have anyway). I know, I know, it's illegal but is it possible?

When you say home heating oil do you mean Kerosene or Diesel?

Kerosene (also known as paraffin) should never be used in a Diesel engine as it will burn out the injectors and its lack of lubrication will also wreck the pump, you will spend far more in repair costs than you will ever save by breaking the law.

Diesel is also used in some home heating situations as it is cheaper but dirtier. This is known as MGO (Marked Gas Oil) and is also known as both Green Diesel due to its dye coloration and Agricultural Diesel as it is exclusively used in Agricultural Tractors and vehicles (diggers etc.) Basically whenever Diesel is used in Ireland in a situation where it is not being used in a Private or Commercial road vehicle then it is Green dyed. It is used in Marine Engines, Backup generators, Heat for the carwash etc.

However using this Green Diesel in your car is highly illegal and if you are dipped by the customs you will be subject to fines and court proceedings. However from a Diesel point of view it will run the car just as good as ordinary unmarked "white road Diesel"

CBYR1983

Some historical tracking on kerosene in this thread.

http://www.boards.ie/vbulletin/showthread.php?p=64395509

Like a pingpong ball.

Some form of national regulation required here. There has to be a way of making price changes more transparent.

Consumer Prices are getting back up to the June 2008 levels.

CBYR1983

Taken from Oil Supply Division of Eamon Ryan's Dept. There is effectively no consumer protection despite this being an essential commodity!

PRICES


The basic elements in the formulation of retail oil prices are as follows:

• The price of oil products on international markets,
• Importation/ Storage/ distribution costs,
• Duties levies and taxes, and
• Retail margins.

PRICE CONTROL

Who has responsibility for the pricing of petrol, diesel and home heating fuels?


The Oil Supply Division has no responsibility for prices. For some years now oil prices, in line with other sectors, have been de-regulated as a measure to encourage competition in the sector and to abolish cartel development. Persons selling petrol and diesel are required under the Retail Price (Diesel and Petrol) Order, 1997 to display the price per litre both at the petrol pumps and at the roadside. Further information in regard to pricing matters can be obtained by contacting the National Consumer Agency www.consumerconnect.ie or Consumer Helpline on 1890 432 432.