In July this year when the price of crude oil hit $148 per barrel, I filled the oil tank with kerosene 28 at 57p ($0.98) per litre.
On Friday, when crude dropped to $78 per barrel during the current downward price trend, I checked local distributors for the price of kerosene 28 and found rates varying from 49p to 57p per litre.
In October 2007, when crude traded at $84 per barrel, kerosene 28 was generally available at 35p per litre.
I called the distributor asking for 49p per litre on Friday and asked why, relative to the October 2007 price, kerosene 28 was so expensive given the drop in the price of crude. He quoted two additional factors affecting the current situation. The first was the reduction in output by the Middle East. The second was the strength of the dollar against the pound.
Whereas the latter reason would account for a marginal increase, I can’t comment on the first reason. Was the distributor correct in his explanation to me or, as I fear, is the oil industry taking a massive financial advantage of customers for home heating oil by keeping the price artificially high and feeding them bullshit if they query the cost?