Oil Prices in the UK

Oil prices in the UK are generally based on the oil prices in Western Europe, with the oil coming from the ports of Antwerp, Amsterdam and Rotterdam.

The crude oil can be bought in two different ways by the oil companies.

• FOB - Free on Board. This means the oil supplier has to arrange for a ship to pick the oil up, complete quality testing and then ship it back to the UK port for unloading. 
• CIF - Cargoes, Insurance and Freight. This means the oil company pay for the product to be delivered into them, leaving it for another company to organise.

There is a difference in price between these two ways to buy oil and this can vary between $6 and $30, with CIF always being the most expensive.

Where the oil is being shipped to can also have an impact on the price of oil in the UK. If the ship is delivering its cargo to the ports on the east of the country (Immingham, Thames etc) then the distance it has to travel from Western mainland Europe, is a lot shorter than if the oil is to be delivered to the west (Stanlow, Ellsmere Port, Clyde etc). This tends to mean that oil prices on the west of the UK are more expensive than oil prices in the east of the UK.

Once the oil is in the UK there are a number of other factors which impact on the price of your oil before it gets to your home. For more details view our ‘Your Home Heating Oil Price Explained' page.