Oil prices fall for sixth consecutive week as supplier claims cheaper costs is good for business

According to statistics released by the Consumer Council, figures show that the average price of 300 litres has dropped from £233.53 on August 31, to £221.79 on November 30.

It also marks a £2.74 decrease from the week previous (November 23).

The weekly survey from the watchdog also shows that 500 litres of oil now costs £350.79 on average, a 4.6% decrease from the end of August when the price was £367.20.

Similarly, 900 litres of oil currently costs £623.48 on average – with the same order costing £647.72 at the end of August.

The Consumer Council found that the cheapest average price for 300 litres of oil was in the Derry City & Strabane area (£218.52), with the most expensive being in Newry City, Mourne and Down (£224.80).

However, in recent days following the survey, the price of oil from suppliers has edged up slightly across the province.

Oil prices had peaked in late February-early March last year following Russia's invasion of Ukraine, and it was feared there could be a similar spike due to the ongoing Israel-Hamas war in the Middle East.

David Blevings, of the NI Oil Federation, explained that mild weather and weak demand in countries such as America is being cited as being behind the drop in prices.

However, he warned that an escalation of the conflict in the Middle East could mean prices rise “very quickly”.

Eamonn Darragh, manager of Star Fuels in Aghadowey, Co Londonderry, acknowledged that the lower oil prices are making it easier for suppliers.

He said: “People think suppliers prefer it when oil prices are dearer but that’s not the case for us. Any savings we can make for the public during the cost-of-living crisis and at Christmas is something that we want to do.

“The demand for oil has picked up recently but it is weather dependent. We have also noticed that people are only buying when they really need it such as in the summer and are spending their money elsewhere.

“We did worry about the conflict in the Middle East and customers were fully aware and said they wanted to fill up their tanks, but it thankfully hadn’t affected the price yet.

“If the price of oil stays cheaper, it’s better for us.

“For example, we were able to do a Black Friday deal at cost price and people ordered it to make vital savings.”