The price of home heating oil and road fuel is continuing to fall across the north this week amid easing Middle East tensions and reports of a large build-up of surplus crude oil.
The average order of 500 litres of home heating oil dropped to £267.85 this week, taking prices back to where they stood in August.
The latest industry survey from the Consumer Council found 900 litres of heating oil averaged £470.77 in the north this week, with smaller batches of 300 litres selling for £169.80 on average.
The Consumer Council’s roadside fuel pump survey also detected a small drop in diesel and petrol prices in recent days, falling to 134.2p per litre for diesel and 128.1p for petrol.
Prices are expected to drop further in the coming days as the wholesale price of crude oil fell to the lowest price in five months.
The average price of home heating oil and road fuel has fallen this week across Northern Ireland, according to the Consumer Council.
Brent crude oil dropped to $61.50 per barrel on Tuesday, and was holding at just over $63 on Thursday.
Oil prices had fallen to a four-year low in April this year, resulting in home heating oil prices in Northern Ireland similarly sinking to a four-year low in June.
That was temporarily reversed by ratcheting tensions across Middle East following successive air strikes launched against Iran by Israel and the United States.
While easing tensions and the Gaza peace deal has played its part in settling the market in recent days and weeks, a major factor on the wholesale market could be a new report from the International Energy Agency (IEA).
According to the Financial Times, the IEA report has revealed a “large surplus” of crude supply.
Wholesale prices fell after the IEA cited preliminary data pointing to a “massive” build-up in oil shipments in September.
It cited a surge in exports by key producers, which suggests output is now more than consumers need.
The falling price of crude oil takes the wholesale price back to levels typically witnessed during 2021.
Households and businesses have suffered from the severe energy shock in the wake of Russia’s invasion of Ukraine in late February 2022, which had dramatic implications for both the wholesale price of oil and gas.
The surging price natural gas in particular subsequently drove up electricity prices as well.
Around two-thirds of households in Northern Ireland use home heating oil.
At current prices, the average oil-fired household could still pay between £941 and £1,412 per year for heating oil, depending on two or three orders of 900 litres.
That compares to the average gas-fired household, which faces an annual bill of between £935 and £985.