# Why is home heating oil here so expensive ? compared to NI.



## Smart_Saver (13 Mar 2011)

Hi
Home heating oil/kerosene whatever is around the €840/850 mark at the moment for 1000 litres. source .. http://www.cheapestoil.ie/heating-oil-prices/Galway.aspx
In northern Ireland it is under €700 for same amount (when you convert across Pounds to Euro).. source .. http://www.cheapestoil.co.uk/Heating-Oil-NI.aspx

Why so? Diesel & Petrol at the pump are a lot more expensive in NI than down here but why is it the opposite for Home heating ? Is it subsidised? Maybe this has been answered already and if so maybe you could just post a link to the answer.
thanks


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## DGOBS (13 Mar 2011)

in a word TAX


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## ajapale (13 Mar 2011)

DGOBS said:


> in a word TAX



What is the tax on home heating oil?


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## Guest105 (13 Mar 2011)

From May 1st 2010 – the new carbon tax will result in a price increase of Kerosene (*Heating Oil*) by *4.3 cent a litre* including VAT. This will mean an extra €43 Euro on 1000 litres – which is an increase of about 6.5%
http://www.*****************.com/category/heating-oil


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## ajapale (13 Mar 2011)

Thanks Cashier for the information on the carbon tax increase last May but does anyone know what the *total* tax take is for 1000 litres of kero?


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## DGOBS (13 Mar 2011)

nearly sure the vat here is 13.5% and NI is 5%
not sure of the total tax take including carbon tax etc.....


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## mcaul (14 Mar 2011)

yep - tax difference.

refinery price is about 60c per litre, distribution costs are about 10c and then 3.5c carbon tax and 13.5% vat

In NI, 50p is refinery price, distribution costs about 8p and then 5% vat.

On motor fuels the uk has higher duties, so probably evens out.


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## Smart_Saver (14 Mar 2011)

Cheers McCaul
If anyone close enough to border and thinking of importing from NI here's a previous post. 
http://www.askaboutmoney.com/showthread.php?t=133065&highlight=Importing+home+heating

One thing thats mind boggling is the price hike in the *1 YEAR* since this post. 

*50%* *nearly !!*


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## DGOBS (14 Mar 2011)

Wouldn't importing be illegal? unless duty was paid, and remember it's easy to spot as kero in south is red, north is green


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## Lex Foutish (14 Mar 2011)

GoMayoGo said:


> Hi
> Home heating oil/kerosene whatever is around the €840/850 mark at the moment for 1000 litres. source .. http://www.cheapestoil.ie/heating-oil-prices/Galway.aspx


 
That's a good link, GoMayoGo. I paid about €420 for 500 litres last week.


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## demoivre (15 Mar 2011)

GoMayoGo said:


> Cheers McCaul
> One thing thats mind boggling is the price hike in the *1 YEAR* since this post.
> 
> *50%* *nearly !!*



Yep, Kerosene has doubled in price in two years according to cheapest oil and a barrel of oil is nowhere near the $147 it reached a few years ago.


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## Leo (15 Mar 2011)

DGOBS said:


> Wouldn't importing be illegal? unless duty was paid, and remember it's easy to spot as kero in south is red, north is green


 
Yes, importing is illegal. Article in the Indo yesterday suggested Revenue were currentrly targetting this.


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## RMCF (15 Mar 2011)

Can someone answer this question?

Why is buying heating oil in the North and bringing it South illegal, when doing the same with things like groceries, clothes, electronics etc not.

Never understood that, why one product is different to another.


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## angela59 (15 Mar 2011)

Just to let you know that the website cheapest oil is not always the case - I regularly used this website - on one occasion the price quoted and when delivered was higher - when I phoned the supplier said the prices change on a Monday and Wednesday - I did get a refund after arguing my case for the price quoted on line on date ordered.  Before Christmas I phoned around locally myself and the prices were cheaper than cheapest oil so it is still worth phoning.

Angela59


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## Leo (16 Mar 2011)

RMCF said:


> Can someone answer this question?
> 
> Why is buying heating oil in the North and bringing it South illegal, when doing the same with things like groceries, clothes, electronics etc not.
> 
> Never understood that, why one product is different to another.


 
EU law allows each member set restrictions/duties on the importation of three categories of excisable products - mineral oils, alcohol and alcoholic beverages, and manufactured tobacco. It is this law that means these products are treated differently to others.
Leo


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## RMCF (16 Mar 2011)

Leo said:


> EU law allows each member set restrictions/duties on the importation of three categories of excisable products - mineral oils, alcohol and alcoholic beverages, and manufactured tobacco. It is this law that means these products are treated differently to others.
> Leo



Thanks for that Leo. Been asking people that question for ages now and no-one was able to give an answer. 

Now I know.


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## vetoldthe (16 Mar 2011)

should i buy home heating oil now or wait a few more weeks what do you think.


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## Guest105 (16 Mar 2011)

I would be inclined to wait, it is very expensive at the moment.


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