Escalating Heating Costs Hit Most Vulnerable Hardest

Repeated rises in the cost of crude oil on both sides of the Atlantic has been blamed for pushing the price of home heating oil to new levels – and it's hitting the most vulnerable hardest.

Tom Cairns, Director of Policy and Public Affairs with the charity, Age Concern, said the hefty price rises would affect those most in need.

He added: "These increases could significantly impact on some of the most vulnerable older people particularly those on low incomes.

"I am particularly disappointed that we have seen dramatic rises in the cost of oils while the winter fuel allowance has stayed the same," he said.

At present there are 203,000 households living in fuel poverty. This accounts for one in three households (33.3%) and represents a much higher figure than either England (9%) or Scotland (17%).

And with such dramatic rises the number of people in fuel poverty could soar even higher.

The facts are stark indeed and all consumers – irrespective of age - across Northern Ireland are now paying nearly three times more for home heating oil than they were five years ago.

Even since August this year, the price of oil has rocketed by 40% and fuel experts have warned that the high prices are here to stay.

Prices have shot up to over £400 for a 1,000-litre fill, resulting in an annual heating bill in excess of £1,200 for householders who top up three times a year. This represents a tripling of the price five years ago.

In 2002 the average price for a barrel of oil was $22 compared to almost $100 for a barrel today. The result is that 1,000 litres from one of the local suppliers is now costing £430, (an online distributor Valueoils.com was cheaper at £409), with many of the prices going up on a daily basis.

Ironically, five years ago a near panic was setting in after prices reached £159 for 900 litres of oil!

The overall rise is the result of increased demand from countries like China and India.

And with supplies from countries like Iraq being squeezed, high winter fuel prices are here to stay.

Independent oil industry analyst Rod Prowse, of consultancy company Marathon Associates Ltd, said: "High prices are here to stay.

"Rising oil demand, especially in Asia, coupled with little spare capacity on the supply side, is combining to support high oil prices," he said.