Panic buys for heating oil

Suppliers deny 'price gouging' as costs defined by ports

Heating oil suppliers have seen a massive rise of orders since Monday morning. Along with these “panic buys”, prices have spiked. While there is no shortage of heating oil, delays in logistically processing the backlog are ongoing. Suppliers in Cavan and Monaghan emphasise that they have no control over the prices.

The owner of Duffy Oils in Castleblayney has seen a “big panic” for home heating oil since Monday morning. There is an “unbelievable demand”, but unbelievable is also the word used to describe the surge in prices. “For every 1000 litres, it’s hundreds of euro more!”

On March 4, Oilprices.ie clocked the average price for heating oil in County Cavan for 1,000 litres at €701; in Monaghan at €709; while the average in Ireland was put at €761. Just the previous Friday, February 27, 1000 litres sold for €504 in Cavan and €502 in Monaghan.

The last time the Duffy Oil’s owner saw prices fluctuating like this was when the Ukraine war started. He explains that companies like his have to go by the price set by the ports at 9pm every day. “They always fluctuate a bit, but not like this.”

Retailers had no choice, he said, but to pass on the increase. He is confident, however, that prices will drop “every bit as quick” when the crisis in the Middle East is over. “Too many people rely on it.”

Meanwhile, a man of pension-age, tops up his car with diesel at the Certa Fuel Depot in Cavan. He is sure the situation will "blow over”. He cannot understand why people are “panicking” if they still have enough oil in their tank. “Half a tank will bring you to May, you don’t need to heat then.”

McCaughey fuels in Clones had to temporarily take down their online ordering form. They have a backlog of orders, which will last until the end of next week. “For every call we take, we miss one,” the owner says. Normally, their storage tank lasts up to three days. With an exceptional demand for heating oil, they have already presold the stock within a day.

On their website they state: 'We are working our way through deliveries as best as we can, but we cannot commit to pricing until the day of delivery.' Due to the current uncertainty within the oil markets prices are very volatile.

People have taken their anger to them directly, but “we are not price gouging!” he emphasises. Suppliers like him are simply carrying over the price. “I am not making more than last week on the litre,” he insisted.

When asked whether people were panic buying with no actual need for oil, he confirmed this is the case. He gave a current example of a person ordering 1000 litres but, when the lorry arrived, it could only fit in 400l. At the same time, “other people are genuinely out of oil and cannot heat their home.”

In Cavan at the Fuel Depot a middle-aged man from Belturbet is filling up five drums at the hand pump. He was turned away in Ballyconnell. “They were out of oil,” he says. He cannot remember when last he went to fill drums himself.

“Normally I get a delivery, but they are all booked.” He reckons, he still has about a quarter of a tank left. Waiting for a bulk order would be cheaper, but he "can’t chance it”.

These five drums – one lasting about a day – are his reserve. “At least the weather is more in our favour now. I could go without heating or cut down a bit, but I have a vulnerable person at home,” he explains. The bill amounts to €170 for 120 litres. Last October he says, he paid 92c on the litre.

Michael Colton from the Fuel Depot can understand the frustration of the people, but insists “there is nothing we can do".

Kerosene and green diesel have both gone up. Regular emails from the port confirm the changing barrel prices. “We are definitely not profiteering. We charge what we pay.”

Mr Colton assures that there is no shortage of heating oil, just twice the number of orders compared to their usual business. “We currently fill up the tank twice a day, normally we fill it up once.”

Normally the depot deals with about 200 orders a week. This week they already have around 400 on the table.

Prices for heating oil are expected to go up another 10 points by this evening (Wednesday).