THE price of home heating oil in Northern Ireland has jumped by around 7 per cent in the space of a week, but households here are still getting a better deal than their counterparts across the border.
The Consumer Council’s latest home heating oil price checker put the average cost of 500 litres of kerosene in the north at £317.30 this week (63.5p per litre), 7.6 per cent up on last week’s average of £294.80.
The latest price comparison analysis with home heating oil dealers across the Republic shows the same order would this week cost around 39.4 per cent more across the border: €516 (£442) for 500 litres, or 88p per litre.
It is estimated that around two-thirds (68 per cent) of homes in the north rely on oil to heat their properties.
In the south, that figure is lower. In 2021, the Central Statistics Office estimated 37 per cent of households in the Republic were oil-fired.
The price of home heating oil rocketed on both sides of the border following Russia’s invasion of Ukraine.
Kerosene hit a peak of more than £660 for 500 litres in the north in March 2022, with 900 litres reaching around £1,200.
Read more:
- How do road fuel prices compare in Northern Ireland v the Republic?
- Price of home heating oil falls to lowest price in a year
In the Republic, the same fuel peaked at around €1,600 (£1,370) for 1,000 litres.
Prices have been largely falling on both sides of the border in the year since that peak, dropping to a low of £281 for 500 litres in Northern Ireland in May, and dipping to €452 (£387) across the border.
The price of kerosene has crept up by around 14 per cent across the island since then.
️The average price of 500L of home heating oil in #NorthernIreland this week is £317.30.
— The Consumer Council (Northern Ireland) (@ConsumerCouncil) July 27, 2023
View this week’s average prices for 300, 500 and 900 litres in your area using our price checker tool - https://t.co/CSk4LWBirs pic.twitter.com/jdZiBfegXt
Home heating oil is governed by different tax systems north and south. The biggest difference is VAT, which in the UK, is reduced to 5 per cent (from the standard 20 per cent rate) on domestic heating fuel.
The 13.5 per cent rate of VAT on home heating oil in the Republic is also a reduction on the standard rate (23 per cent).
But home heating oil was not included in the temporary 9 per cent VAT rate, introduced by the Irish Government for domestic gas and electricity.
The UK system also puts around 10p of fuel duty on each lire of heating oil.
The Irish Government uses a carbon tax on fossil fuels. In May 2023, the carbon tax went up, adding around €19.41 (£16.61) for a 900 litre order of home heating oil.
The increase also made coal, peat and natural gas more expensive.
It’s expected to raise an additional €114 million this year and €151m in 2024.
The Irish Government said it will use the additional revenue to increase the fuel allowance in addition to programmes aimed at reducing the state’s overall carbon footprint, including better insulation of homes.
David Blevings is Ireland manager of the Oil Firing Technical Association (OFTEC), which represents the liquid fuel industry on the island of Ireland.
He is also executive director at Northern Ireland Oil Federation.
Despite the recent increases, he claimed home heating oil is still the cheapest way to heat households on either side of the border.
“For existing homes, oil is once again the most cost-effective way of heating your home in Northern Ireland today and shows that competition in this sector continues to deliver value for consumers,” he said.
