How conflict in the Middle East impacts your fuel supplies
As tensions rise in the Middle East, we understand our customers naturally have questions about the impact of current events on their fuel supply. And, as an employee-owned business committed to transparency and support, we believe it’s important to keep you updated every step of the way. That’s why we’ve collated some frequently asked questions to help you better understand what’s happening and what it could mean for your home, farm, or business.
These questions cover topics ranging from the price of heating oil, fuel, and lubricants to the availability of stock and advice on what you should do next. We also outline exactly what Craggs Energy will be doing to support our customers throughout this period, as we endeavour to keep you fuelled and informed as circumstances change.
We hope you find this information useful. However, should you have any further questions, please get in touch with our team.
How is the price of fuel going to be affected?
Every day, we purchase fuel, lubricants, and heating oil to directly fulfil our customers’ orders. The price we pay reflects market movements and any demand restrictions affecting these products at the point of purchase, including conflicts, sanctions, and political instability. Supply fears often cause prices to rise before any actual shortages occur, because global oil markets respond to anticipated risk as well as confirmed disruption. As a result, we only know the price we will be paying tomorrow.
How have prices changed, and how will they change?
Over the past two weeks, concerns over increased tensions in the Middle East have led to a rise in the price of oil, which has increased the cost of heating oil, fuel, and lubricants. This morning, the price of crude oil has risen again, which will affect the price you pay for your fuel over the coming days and potentially weeks.
However, experience from previous conflicts shows that prices do tend to stabilise over time, once the initial shock of military action has passed.
Will there be a shortage of heating oil or fuel?
While there may be some impact on supply, we have developed a strong supply chain over many years at Craggs Energy. This gives us confidence that we will be able to meet your ongoing needs, helping to power homes, farms, and businesses across our community in Yorkshire in North West England.
Will the price of the heating oil or fuel that I have already ordered increase?
If you have already placed an order, we will honour the price quoted to you.
Will the price of my heating oil increase if I haven’t placed an order yet?
Rather than inflating prices to cover unknown market movements, we have moved to ‘indicative’ pricing. This means we will provide an estimate of the likely order cost at the point of delivery, and we will call you the day before to confirm the final figure, giving you the option to proceed or cancel your order if desired.
Should I put my order on hold for now?
As the situation in the Middle East is fluid and fast changing, it is difficult to predict how supplies and prices may be affected in the coming days and weeks. If you are running low, our advice is to order as normal. Allowing your tank to run close to empty increases the risk of drawing sludge into your heating system, which can cause damage to your boiler. This could result in a far more expensive repair bill than ordering your heating oil or fuel at current daily rates.
With our Cosy Heating Club, you can order as little as 300 litres of heating oil at a time. So, if you’re not currently a member, it could be a beneficial time to join if you require a smaller top-up volume that can be spread across monthly payments.
Will prices of fuel and heating oil come down in the near future?
Experience shows that, following the initial shock of conflict, prices do tend to stabilise. This was the case after Russia invaded Ukraine in 2022. While prices may not fall as quickly as the market desires, we will always pass any reductions on to our customers.
If you’d like further advice on how conflicts in the Middle East impact fuel requirements for your home, farm, or business, please reach out to our team – we’re always here to help.
