New statistics show that oil prices have remained more stable than other forms of heating. A comparison of heating costs for the last five years, based on information supplied by the Sutherland tables, reveals that oil remains a very competitive choice for off mains gas customers, providing they use a condensing boiler. The average price of kerosene has risen less than many of its competitors and the seasonal variation in price gives oil heating users the chance to maximise savings. Percentage increase in the price of oil and other heating options 2008-2012 Heating type                      Percentage increase over five years Solid fuel                                 43% Electricity                              26% Mains Gas                              48% LPG/LPG Condensing       55% Oil/oil condensing             29% Wood pellets                        5% Data source: Sutherland Tables. These comparisons do not take into account the latest price increases announced by the leading energy suppliers, so oil is likely to become even more competitive.

The Heating and Hot Water Industry Council (HHIC) has introduced a new fictional family as part of its Hole in the Roof energy saving campaign. The Romans have been created to mirror an average British family wasting energy, and money, in their home. The HHIC hopes that the public will be able to relate to the Romans’ energy wasting habits and more effectively absorb the central messages of the organisation’s campaign. The HHIC describes the Romans as an ordinary family, in an ordinary house, in an ordinary street. They don’t actually have a hole in their roof but they might as well have one with all the energy that is leaking through doors, walls, windows, fireplaces, roofs, keyholes and garages. Dave Roman (Dad) has bad habits such as turning the thermostat up high and opening windows. He often puts the dishwasher on half full. Claire Roman (Mum) likes to take long baths often topping it up with hot water. She also likes to have a cup of tea having boiled a full kettle and sits on a sofa which blocks the radiator. Meanwhile the children, Alfie and Demi, are gadget mad, leave lights on when leaving rooms and electrical items such as hair straighteners and Ipod chargers plugged in all day. Roger Webb, HHIC director, said: “We can all identify with the behaviour of the Romans, as their energy wasting habits are quite familiar especially for those of us with teenage children. The purpose of our hole in the roof campaign is to raise awareness of energy efficiency and how important it is to make sure our homes leak less energy resulting in financial savings.” For energy saving tips and advice visit www.holeintheroof.org.uk

The chancellor George Osborne scrapped the 3 pence per litre rise in fuel duty scheduled for this January. The decision not to increase the tax was confirmed by Osborne in his Autumn Statement when he also pledged to postpone any further increase in April. FTA and its partners in the FairFuelUK campaign had been working with the Treasury and MPs, seeking to persuade them not to go ahead with January’s planned rise in fuel duty. FTA sent a FairFuelUK briefing document to all MPs to warn them of the damage increasing fuel duty could mean for the logistics sector and the wider economy. It also asked members to download a template letter to send to local MPs in a bid to ratchet up the pressure. Quentin Willson of FairFuelUK said: “FairFuelUK has worked tirelessly to convince MPs and Ministers that the 3p rise would be enormously damaging to the economic recovery.  To their credit the Treasury and the chancellor have engaged constructively and have made the right decision.  The cancellation of the 3p rise completely is a welcome surprise, it would have cost 35,000 jobs and hit growth. Fantastic news but the fight for fairer fuel pricing goes on for the sake of hard pressed businesses, the public and to stimulate growth in the economy.” Although happy with the decision to waive any rise in fuel duty due in either January of April, FTA adds that it is disappointed George Osborne did not go further and abandon all planned rises before the next election and move to reduce fuel duty by 3p a litre. The FairFuelUK campaign therefore looks set to continue lobbying for a reduction which its research suggests could grow the economy by 0.2% at a net cost of the Treasury of £3bn. James Hookham, FTA’s managing director – policy & communications, added: “This early Christmas present from the chancellor is a good start, but we will not let this issue go.  Spiralling fuel costs have a devastating impact on haulage businesses, their customers and ultimately everyone through the price of goods on the shelves, and the campaign for a fairer deal will continue. “January’s rise would have cost a 10 vehicle freight operator around £14,000 – which could be one employee’s wages.  While we are relieved that the immediate danger has passed, in order to get the UK back on the road to economic recovery it is vital that we have a cut in fuel duty and a long-term strategy to prevent future rises and uncertainty.” More details of the campaign can be found here: http://bit.ly/UFFnqN

Over six tonnes of toxic waste have been removed from a private address in Co Armagh following the discovery of a diesel laundering plant. The illegal operation was capable of producing five million litres of illicit fuel, evading nearly £4 million in taxes and duty. Officers from HM Revenue & Customs (HMRC), supported by the Police Service of Northern Ireland (PSNI), searched a number of sheds at a private address in Cullyhanna where the plant was uncovered and then dismantled. Pat Curtis, HMRC national oils co-ordinator, said: “Every illegal laundering operation typically generates tonnes of toxic waste, which involves significant environmental and safety issues. As taxpayers and local ratepayers, not only are we missing out on the stolen tax going into the pockets of the criminals, we are also paying the substantial clean up and disposal costs. “Buying illicit fuel funds crime and supports and encourages these dangerous activities within our communities. The only winners are the criminals. I would urge anyone with information on fuel misuse in their area to contact our free telephone hotline 0800 59 5000 and contribute to the fight against this criminality.” Pumps and equipment were removed from the site and investigations into those behind the operation are continuing.

The FPS has unveiled a restructured eight-module FPS Driver Certificate of Professional Competence (Driver CPC) Scheme. It is promoting the new modules with special offers until the end of 2012. “FPS is committed to providing the best possible training for its members through the Driver CPC Scheme. The new courses we are offering through our restructured CPC Training are purpose-designed to give extra choice and flexibility to end users with 3.5 hour modules in a ‘mix and match’ format to enable members to build a full day’s training to meet the individual needs of the company and its drivers,” said FPS driver CPC do-ordinator Keith Ashton. The modules will cover such things as Spillage Prevention & Loading, Discharge & Product Return, Working at Heights and Ladder Training, Manual Handling, Spill Prevention (Small), Working at Heights and Ladder Training (Small), Health & Safety, First Aid, Fire Safety, Drivers Hours, Driving, Accidents, SAFED, PPE, Spill Response, Site Risk Assessment, PPG & Marine Deliveries, Forecourt Deliveries and Caring for the Environment, Emergency Response and Security. As each module is 3.5 hours duration, any two may be used together to comply with the 7 hour training day prescribed in the Driver CPC. Each training day can take up to 20 delegates at a time and they are designed to deliver maximum benefits for drivers with minimal disruption to business, says FPS. In addition to the eight modules now on offer, FPS is looking to develop further modules that will benefit members. It says the highly popular ‘trainer in the cab’ practical training day will remain. “It is a fundamental part of the FPS Driver CPC course to deal with all the issues that drivers of fuel tankers have to consider day in and day out, as well as equipping them with more generalised HGV knowledge. This will be continued with the new 3.5 hour modules,” added Keith. FPS member companies have always received discounted rates for Driver CPC training but, until the end of 2012, FPS will promote the new modules with special offers to provide much more generous discounts. www.fpsonline.co.uk/training.asp

Greenergy is installing new equipment at its supply locations to improve driver safety when filling road tankers. The initiative, instigated following a safety walk involving driver and shop steward Dean Lawrence and Greenergy’s chief executive Andrew Owens, will see drip trays introduced to prevent the potential build-up of petrol and diesel residue in the loading bay area. Dean Lawrence said: “The drip trays are simple but effective.  By collecting even the smallest leaks of fuel from the loading arms, they help keep the loading area clean and reduce potential slip hazards. These are practical things that make a real difference. “As senior shop steward for Unite, I’m encouraged by Greenergy’s willingness to engage with its drivers and with the union on safety matters.  It’s an approach others in the industry should follow.” Andrew Owens added: “Our drivers are obviously best placed to observe potential safety issues as part of their daily routine.  We want to harness that knowledge to deliver safety improvements on an ongoing basis. “We have an official safety representative for Greenergy Flexigrid at all of our operating centres, but we also encourage all drivers to come forward with observations and ideas at any time.  I personally take a lead on this and aim to meet all our drivers at least once a year.” The drip trays have already been installed at West Thurrock, Plymouth, North Tees, Eastham and Clydebank and are on order for Grays and Vopak Teesside. www.greenergy.com  

A debate on the future of oil heating was held at last month’s Oil & Renewable Energy Show. On the panel were OFTEC’s Jeremy Hawksley, Mark Askew from the Federation of Petroleum Suppliers (FPS), Brett Hale of Riello and Peter Carter from Atkinson Equipment. Chairing the debate was Jane Hughes, editor of Fuel Oil News. With a packed seminar theatre and several people keen to give their views, this debate could, and should, have lasted far longer. To be expected, the panel’s views on the future of oil heating were very diverse and in some cases, totally opposing. Explored by both OFTEC and the FPS, current threats to oil include its price, its exclusion from new build properties under the Code for Sustainable Homes, bioliquids being ruled out of the Renewable Heat Incentive(RHI), the possibility of an extra tax and the RHI subsidies. Whilst Riello sees oil working in partnership with solar thermal and heat pumps, the company believes that without bioliquids, oil does not and will not have a green credential to fit into the future energy mix. Whilst agreeing that our industry should work with renewables – particularly those unable to supply hot water all year round – Atkinson Equipment made a plea for our industry not to tinker with fuel and equipment that is tried, tested and trusted by its customers. Peter Carter argued that happy customers would give the industry greater leverage, if and when the government decides to ban oil heating altogether! In 2001, kerosene sales were at 2639 kilotonne (kmt), last year this was down to 1973kmt. The government predicts that by 2020, 500,000 homes will have switched to alternative technologies aided by the RHI. “One of oil’s problems is that it’s so damn good,” said Andy Townsend in Oil Installer Summer 2012. Now also working with renewables, Andy pointed out that we “can’t just turn the oil tap off”. But, the question the industry does need to ask now is, if more than a quarter of heating oil customers have stopped using kerosene by 2020, how long will a declining market remain attractive to refiners, wholesalers and fuel distributors? This debate is certainly to be continued….. In the meantime your views on the ability of the oil heating market to resist the threats are invited jane@oilinstaller.co.uk. THE FUTURE OF OIL HEATING JEREMY HAWKSLEY from A&D Publishing Ltd on Vimeo. THE FUTURE OF OIL HEATING MARK ASKEW from A&D Publishing Ltd on Vimeo. THE FUTURE OF OIL HEATING BRETT HALE from A&D Publishing Ltd on Vimeo. THE FUTURE OF OIL HEATING PETER CARTER from A&D Publishing Ltd on Vimeo. THE FUTURE OF OIL HEATING Q & A from A&D Publishing Ltd on Vimeo.

A deliberate fire started at the Ukay Fuels depot in Hadleigh, Suffolk, destroyed three tankers – but it’s still “business as usual”. The incident, which took place last Friday night, destroyed three tankers containing a total of 35,750 litres of kerosene, gas oil and diesel. Luckily, the fuel storage tank did not catch alight, as the fire brigade controlled the blaze. The police have launched an investigation and are treating the incident as suspicious. Ukay Fuels managing director, Anthony Iameo, said: “All three tankers were burning at the same level and at the same time which shouldn’t happen naturally – especially as the vehicles were new with all the relevant health and safety checks. “We’re not sure if it was a personal attack on ourselves or GB Oils, because there was another attack on an ordinary vehicle one or two nights before the incident.” He added: “We have managed to keep the business running and were out delivering on Monday. We arranged with GB Oils to be able collect oil from the Ipswich depot. “It’s business as usual, and it’s important that people are getting their oil on time, and that customers can keep warm!” www.ukayfuels.co.uk

County Oils’ new bottom loading skid supplied by Alpeco County Oils has had a new bottom loading skid installed by Alpeco at its depot in Sutton Weaver, near Runcorn. The design was finalised after a comprehensive brief from County Oils managing director, Neil Musgrave. Retention of the existing top load bay was critical to the project so that County Oils could continue to use two older but very useful mini tankers that could not be adapted for bottom loading. The new 3 arm loading skid was configured for loading rated of 900 lpm through either bottom loading arms or via the existing top loading arms. A Contrec 1010 register monitors and controls simultaneous loading of up to 3 loading arms. Neil Musgrave said: “We were extremely pleased with the way in which Alpeco responded to our requirements and the speed and efficiency with which the skid was installed. Our site was only out of action for two and a half days.” The County Group also purchased two new tankers from Road Tankers Northern in 2011, both of which were fully equipped with Alpeco bottom load systems and TE550 electronic metering equipment.http://www.county-oil.co.uk

The Energy Institute (EI) and the Joint Inspection Group (JIG) are working together to prepare a new standard for the aviation fuel refining, storage and distribution industry. A final draft is now available for review and the EI calls for industry stakeholders to feedback on its technical content before 4 January 2013. EI/JIG 1530 is intended to provide a standard to assist in the maintenance of aviation fuel quality, from its point of manufacture, through distribution systems to airports. It provides mandatory provisions and good practice recommendations for storage design features and handling procedures, additives used in aviation fuels, facilities and procedures for transportation, and synthetic jet fuel blends. The standard is intended for adoption worldwide. Martin Hunnybun, technical team manager – fuels and fuels handling, Energy Institute, said: “This comprehensive document has been compiled by fuel quality specialists from the EI and JIG, with support from the EI’s technical partners. The feedback process is fundamentally important to ensure the standard is of the highest relevance and contributes to the maintenance of aviation fuel quality throughout potentially complex supply chains, and we are very grateful to those who are able to engage with this project.” A copy is available at www.energyinst.org/1530

David Blevings, executive director of the Northern ireland Oil Federation, and Antoinette McKeown, chief executive of the Consumer Council, at the launch The Northern Ireland Oil Federation (NIOF) has launched a customer charter – a first for an oil trade association in the UK and Ireland. David Blevings, executive director, said: “The charter is a welcome development and will provide consumers with information on what level of service they can expect from a NIOF distributor member. It will also help customers get the most from a distributor’s service, and includes advice on how to make a complaint if they are dissatisfied with any aspect of the service or have ideas for improvement.” Antoinette McKeown, chief executive of the consumer council explained: “We have worked with the NIOF in their development of their customer charter, which will give consumers increased confidence when they purchase home heating oil from an NIOF member. “Sixty eight per cent of homes in Northern Ireland use heating oil as their primary heating source and with such a high dependency on heating oil we need to safeguard consumers.   “The Consumer Council welcomes the Customer Charter as an excellent first step for the local oil sector and with further development it could provide similar support and safeguards that electricity and natural gas consumers have.”

Many questions arose at last month’s Fuel Oil News Distributor Debate including how the industry should prepare for a potential kerosene shortage.  The short answer to that question from both Stephen Rhodes of Mabanaft and Portland’s James Spencer was to stock up on kerosene if you have the storage. “If there’s a precipice and we go off it, then the industry is knackered,” added James.  “Backwardation is not simple and, at the moment, this means that no commercial operator is going to be able to get huge amounts of kerosene – it’s basically commercial suicide.” How do we overcome the problem of consumers drawing unfair comparisons between different energy markets e.g. oil with gas? ‘Educating the public is key’ responded Mark Askew, chief executive, Federation of Petroleum Suppliers. Mark believes that the problem lies with ignorance and that part of the industry’s job is to explain how the market works. “I think most customers are savvy enough these days to understand some of the basic differences, if they’re explained properly.”   Launched recently, a joint FPS/OFTEC Oilsave campaign will explain how the industry works.  It will also demystify some of the information circulating about renewables and costs. Will the UK follow Europe in moving away from oil? Stressing the differences between the European and UK market, Mark Askew said the future probably lay in combining oil, which works instantly, with other energy sources. The distributor offering is likely to change, as it has changed in the past from coal and paraffin. “I don’t think any of us have crystal balls.  When the cut off date for oil is I don’t know, nobody knows, but I don’t think it’s quite dead in the water yet,” added Mark. For more questions and answers from the Distributor Debate see the December issue of Fuel Oil News

Forecasters have warned that a ‘big freeze’ could begin by early December – and we could be facing one of the coldest winters for more than a decade. Temperatures are expected to drop significantly, and ice and frost are likely to cause transport problems and there will be a significant risk of heavy snow. The Federation of Petroleum Suppliers (FPS) is urging homeowners and businesses who use oil for heating to get themselves prepared for winter now.  FPS chief executive, Mark Askew said: “We launched a buy oil early campaign in September in association with the Government and consumer agencies, ACRE (Action with Communities in Rural England), Citizens Advice Bureau and Consumer Focus but many people still haven’t heeded our advice.   “Our members remind customers that they should order early, but people have got into a pattern of ordering the minimum quantity.   Customers have had a trend of ordering 500 litres and then running out in the middle of the worst weather, when tanker drivers just can’t get to them.  “Demand is obviously governed by the weather and a prolonged cold snap, such as the Met Office is forecasting, means that the terminals are unable to provide product quickly enough and consumers can run out whilst waiting for deliveries as distributors have to go further afield to get supplies.” www.fpsonline.co.uk

The Freight Transport Association (FTA) has welcomed the announcement from the Department for Transport about the consultation Examining the Speed Limit for Heavy Goods Vehicles (HGVs) over 7.5T on Single Carriageway Roads.   The FTA has long campaigned on this subject, supporting the reduction of the speed differential between HGVs and other vehicles on single carriageway roads. The logistics industry is convinced that a 40 mph speed limit causes unnecessary costs to vehicle operators, congestion, and avoidable overtaking collisions. It also means that HGVs travelling above the speed limit enjoy a competitive advantage over those adhering to the law. Malcolm Bingham, FTA head of road network management policy, commented: “Whilst our members would not want their drivers to disobey any speed limit and many feel that it is inappropriate behaviour to do so; it creates a stressful situation when driving a vehicle at a lower speed than others particularly when other road users try to encourage the HGV to move faster.” The FTA has also assisted with the publication of two new guides promoting health and safety to professional drivers. The publications, Load Safe, Road Safe and Transport Safety have been produced by the Health and Safety Laboratory (HSL), with assistance from a number of organisations. They offer drivers and other operators information about good practice and assistance for complying with road and workplace legislation. www.fta.co.uk

LS Evanne delivered 6000 tonnes of marine gas oil Inver Energy has taken delivery of its first marine gas oil import to the Cardiff terminal. The LS Evanne delivered over 6000 tonnes of the new product, after the tank farms and loading racks underwent substantial re-engineering to facilitate the order. The marine market within south Wales and south west England has not had access to marine gas oil since 2011 following EU wide changes in gas oil specifications, which caused a significant competitive disadvantage within the market. Inver has a long history of fuel supply to vessels of all sizes in the UK and Ireland, and this new product broadens the fuel offering to customers. The fuel has the added advantage of meeting the approved specification (BS2869), and can be used in boiler and furnace systems to provide a more economical solution for heating.www.inverenergy.co.uk

Greenergy has announced that it will begin supplying diesel, gasoline and biofuel in Southwestern Ontario during the second quarter of 2013. With existing operations in the UK, US and Brazil, the company is looking to continue international success and growth. Paul Bateson, chief operating officer of Greenergy’s international operations and director of Greenergy Fuels Canada, said: “In the UK, Greenergy has achieved long-term growth by delivering what every customer ultimately wants – lowest priced fuel combined with the highest levels of customer service, supply resilience, operational efficiency and sustainability.  We intend to replicate that strategy in Canada.” Kirby Tremblay and Mike Healey have joined the company as joint managing directors in Canada, and bring more than thirty years of combined experience in Canadian petroleum supply and marketing.  Operations will begin from the Vopak terminal in Hamilton, and expand to other supply locations across the country in due course. www.greenergy.com

Almost 1000 buses in Scotland are set to run on a blend of 30% biodiesel supplied by Argent Energy. The B30 fuel is made at the company’s plant near Motherwell by recycling used cooking oil. Previously the Stagecoach vehicles used a mix of 5% biofuel and 95% diesel.  Increasing the percentage of biofuel results in a cut in the vehicles’ CO2 emissions by up to 22%. Dickon Posnett, Argent Energy’s development director, welcomed the move. He said: “Whilst low blends of biodiesel in standard diesel has long been the norm, we’ve seen increasing interest in higher percentage blends for economic and environmental reasons. Now B30 is rolling out widely across Scotland and England, and it will fuel the daily journeys of tens of thousands of people. “It is a straight swap for mineral diesel and needs no modifications to either vehicles or the logistics of the fuel supply chain. So B30 offers a winning combination of ease of use, carbon reduction and economic benefits. Plus it brings the sustainability of a renewable fuel made from wastes. “We are the only UK biodiesel producer to use distillation technology as the final step in our production process. That delivers an extra level of purity and is one of the ways we ensure that all our fuel meets the European standard.” Argent also supplies a number of other transport operations in Edinburgh, London and Cambridgeshire. www.argentenergy.com/

Campaigning to protect the market share of oil heating and cooking, Oilsave.org.uk went live on 1st November. The new website has been jointly designed by OFTEC and the Federation Of Petroleum Suppliers (FPS) to provide customers with information and advice about making the best choices to improve energy efficiency. The site aims to delve deeper into renewable technologies, recommending cost effective solutions which include integrating oil with alternative technologies. The campaign is also urging FPS fuel delivery staff and OFTEC technicians to play their part, and encourage their customers to check out the facts on www.oilsave.org.uk