If you use heating oil to warm up your home during the months of winter, then you’re probably often concerned about the impact that different political, national, and global changes are going to have on fuel costs. Many different factors can affect the price and availability of this important commodity. So, how will Brexit affect UK heating oil prices?
Many consumers are under the mistaken impression that the availability of supplies are going to go down even as demand remains steady during the winter months. Decreased supply and static demand always results in higher prices. Others think that special tariffs and other reforms are going to drive their spending up in this area.
While it is important to pay careful attention to the winds of change when gauging heating oil prices, the truth of the matter is that this is actually a very small change when viewed on a global scale. As such, it is not going to have any dramatic impact on the amount that you pay to fuel up your tank each year. What you paid for heating oil last year and in years past will likely be the amount that you wind up paying this year.
This does not mean that forthcoming changes that follow Brexit won’t affect this commodity or its pricing at all. As it stands now, however, consumers who rely on this popular heating fuel can rest assured that their budgets do not need to significantly expand. All major forecasters are predicting costs to remain fairly steady, apart from slight fluctuations that are independent of this transition.
While Brexit is certainly a big deal for those residing in the UK, it is not much so in terms of the global oil market. Moreover, given that these supplies can be sourced from all over the world, consumers can look forward to having a fair range of diversity within their available supplier options. Certain regions may lose a touch of this diversity, but they definitely won’t be stuck with just one or two options in this respect.
One thing that is vital to note is that heating oil throughout the entire world is traded in US dollars. Due to this fact, current and long-term pricing should always be reflective of how well the British pound stands up to the US dollar. If the value of the pound falls significantly, this could affect spending for UK consumers in all life areas.
Another cause of any significant increase in the cost of kerosene and other similar fuels is the leveraging of tariffs. This is definitely something that all consumers will want to be cognizant of. Those companies exiting the UK may have additional taxes imposed which will either limit their ability to serve specific markets, or cause them to drive their prices up.
One way to avoid any immediate change in this area is by paying to have your tank filled up right now. This way, you can get the supplies that you need for the cold months that lie ahead, and before any new taxes or tariffs are levied. Best of all, you will still have access to the same range of reliable suppliers that you’ve always counted on, and can look for companies that pride themselves in maintaining competitive pricing and offering high-quality, unadulterated products.
