What Affects Fuel Oils Pricing: The Basics of Supply and Demand

Libraries are filled with books about supply and demand, economics professors have practically turned it into an industry itself. The concept, when applied to fuel oil, is no different from other commodities, with the possible exception of politics. Fuel oil suppliers are the face of the industry for most customers, and they are often required to take the lead in explaining the affects of supply and demand on pricing.

It starts quite easy, if oil suppliers have an ample supply and there is little demand, the price goes down. Conversely, with high demand and very limited supply from oil fuel distributors, the price goes up. For fuel oil suppliers, the trick is figuring out what is going to affect these two variables.

Fuel Oil Supply

The supply of fuel oils is impacted by output capacity at every step along the chain. It begins with the amount of available reserves, the equipment to drill wells and the number of producing well heads. Next are the number and size of the tankers or pipelines to deliver crude oil to the refineries. More factors include, refinery capacity, storage, distribution capacity and delivery to the end user.

The competitive demand for refined products may mean that the highest bidder will get the most attention from the refineries, possibly to the detriment of other refined products. An example would be the demand of petrol versus heating oil. All of these links in the chain affect the level of supply at any given moment in time. As a market grows, the least proactive link in the chain will become the limiting factor and bottle neck of supply.

The unique position fuel oil holds in supporting the current standard of living in the world makes it an irresistible tool for leverage in political confrontations. More than one war has been fought over access to oil supplies.

Fuel Oil Demand

As population grows, demand grows and as cost effective energy alternatives grow, demand decreases. The biggest difficulty with this proposition has been making alternatives cost effective. Continued technological developments will further reduce the cost of alternatives and the diminishing supply of oil will increase the cost of retrieving it. Should the price go too high, due to demand, or the economy weaken, people will change their habits and reduce demand until supply can catch up. With fuel oils, it is imperative to have a reliable supply and that requires finding reputable oil fuel distributors anticipating the market and preparing accordingly.

 

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Frequently Asked Questions

Deliveries

  • What areas do you deliver to?

    We deliver to most regions in the UK. To check if we service your area, please use our delivery postcode checker or contact our support team 01772 619 461 

  • What is the minimum order quantity for delivery?

    The minimum order quantity varies depending on the fuel type. For most orders, it is 500 litres, but smaller deliveries may be available upon request for example barrels of 205l fuel.

  • How long does delivery take?

    Standard deliveries typically take 3–5 working days. We also offer express delivery options for urgent orders.

  • What should I do if my tank is overfilled or damaged during delivery?

    Please report any issues to our customer service team immediately. We will investigate and resolve the issue promptly.

  • Can I change or cancel my delivery?

    Yes, you can modify or cancel your delivery by contacting us at least 24 hours before the scheduled delivery time.

  • Do you charge a delivery fee?

    Standard delivery is included in the fuel price for most orders. Express deliveries or orders below the minimum quantity may incur additional fees.

  • What types of vehicles are used for delivery?

    We use a fleet of fuel tankers suitable for residential, commercial, and agricultural deliveries. For restricted access locations, we may send a smaller vehicle.

  • What if my delivery is delayed?

    While we strive to deliver on time, delays can occur due to weather or other unforeseen circumstances. If your delivery is delayed, we will notify you as soon as possible.

  • What should I do to prepare for a delivery?

    Ensure your tank is easily accessible, remove any obstructions, and secure pets or gates. If your tank has a lock, please make sure it is unlocked.

  • How will I know when my delivery will arrive?

    You will receive a notification with an estimated delivery date once your order is confirmed. On the day of delivery, our driver may contact you directly.

  • Do I need to be present during the delivery?

    In most cases, you don’t need to be present as long as your tank is accessible and ready for filling.

  • What happens if I’m not available during the delivery?

    If you’re not available, our driver can deliver the fuel to your tank as long as it is accessible and safe to do so. If access is restricted, we will contact you to reschedule.

  • Can I schedule my delivery?

    Absolutely. You can choose a preferred delivery date during the order process. We’ll do our best to accommodate your request.

  • Do you offer same-day or next-day delivery?

    Yes, same-day and next-day delivery options are available in select areas. Additional charges may apply.

Payments

  • What currency are payments processed in?

    Payments are processed in GBP (British Pounds). If you are paying from outside the UK, your bank may apply conversion fees.

  • Is my payment information secure?

    Absolutely. We use industry-standard encryption and secure payment gateways to protect your payment details.

  • Can I request an extension on my payment due date?

    Yes, payment extensions may be available upon request. Please contact our billing team to discuss options.

  • Do you offer refunds?

    Refunds are processed in accordance with our refund policy. Please contact our support team for further assistance.

  • How can I update my payment details?

    You can update your payment details by contacting our customer service team. 

  • Can I split my payment across multiple methods?

    Unfortunately, we do not support splitting payments across multiple methods at this time.

  • What should I do if my payment is declined?

    If your payment is declined, double-check your payment details and try again. If the issue persists, contact your bank or our support team for assistance.

  • How do I receive my invoice or receipt?

    Invoices and receipts are sent to your registered email address or by letter.

  • Is there a surcharge for using a credit card?

    No, we do not charge additional fees for payments made using a credit card.

  • Do you offer credit terms for businesses?

    Yes, we provide credit terms for eligible business customers. Please contact our sales team to discuss account setup and terms.

  • Can I set up a direct debit or recurring payment?

    Yes, you can set up direct debit or recurring payments to ensure timely and hassle-free billing.

  • What payment methods do you accept?

    We accept a variety of payment methods, including credit/debit cards, direct bank transfers. For business customers, we also offer account-based billing.

  • I paid for my order by card, I received less fuel than I paid for due to the tank being full, what happens now?

    We have a couple of options available, we can refund your payment card, this takes 3-5 working days from the date we process your refund. Alternatively, we can leave the credit sat on your account and adjust this amount from the payment for your next order.