June is a month for weddings and graduations, as well as barbecues and beaches. To top it all off, June includes the longest day of the year, the Summer Solstice, and typically brings some of the warmest temperatures. Moreover, it marks the beginning of a well-deserved break for the CEO of UKIFDA!
June always inspires my absolute favourite song, “Here Comes the Sun”, with its heartfelt lyrics: “Little darling, it’s been a long, cold, lonely winter. Little darling, it feels like years since it’s been here. Here comes the sun”. I sing it with great enthusiasm on my way home from the UKIFDA annual event. This year was particularly notable because we experienced quite a cold winter, with temperatures in January and February dropping below average for the first time in a long while.
Is summer now the start of the heating oil buying season?
I’m not entirely sure. When I first started in this industry, there was a clear bias towards winter sales. However, the recent summer data has shown that last year we experienced the highest heating oil sales since 1998, accounting for 22% of the total for the year.
Several factors may be driving this trend. For instance, the rising cost of living might have encouraged more people to purchase heating oil in the summer, as they believe prices are typically lower during this season. However, data from the last 12 years, reveals that in 7 of those years, prices in September were actually higher than those in December.
Another possibility is that consumers may have had lower oil levels in their tanks due to significantly higher prices in previous years, leading them to take advantage of the lower prices. There may also be a trend towards buying smaller quantities more frequently.
Additionally, the announcement made on 29 July 2024 may have influenced buying patterns. On this day, the Chancellor removed the Winter Fuel Payment for the majority of pensioners in the UK. Did this cause a shift in buying patterns? As the data suggests, “one swallow does not a summer make,” and I will closely monitor this year’s data. Such a movement could have notably profound implications for our industry.
Then, on 9 June 2025, things changed! As I write this article, the Chancellor has just announced a reversal of the Fuel Payment cuts for this winter. It’s fortunate that I requested an extension of time for July’s Ken’s Corner. The announcement states that pensioners earning £35,000 or less will be eligible for the payment, which accounts for approximately 75% of all pensioners. This figure aligns with the national average income. So, what does this mean for our industry?
The table below provides information on the age profile of the oldest person in each household in England and Wales, comparing it to the type of central heating system used. Notably, 55% of all oil heated homes have someone over the age of 60 living in them, which is a higher percentage compared to gas (40%) and electricity (42%). This trend continues for those over the age of 75.
While I don’t have specific data on the average income of these pensioners, overall income data for the top 20 oil heating constituencies in Great Britain indicates that their incomes are below the regional average. Therefore, it is a fair assumption that a significant proportion of our customer base will experience an income boost this winter. It will be interesting to see how this impacts summer sales.
I hope you all enjoy the summer; it feels like it’s been years since the last one!
Image credit: iStock/artisteer
