Editorial: Much needed good news about the lower cost of oil in Northern Ireland

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News Letter editorial on Saturday November 16 2024:

​We report today some very good news with regard to oil prices in Northern Ireland.

The cost of home heating oil is lower than it has been in the province since before the invasion of Ukraine.

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As we report on page 8, it costs only £278 on average to buy 500 litres of oil and an average of £487 to purchase 900 litres. This works out at 54p a litre, which is less than half the peak prices in the weeks after the Russian attack.

The news is particularly welcome in NI where more than 60% of households still use oil, unlike England where the percentage of homes that use such fuel is less than 5%. It underlines that some aspects of the ‘cost of living crisis’ have been not merely greatly alleviated, but returned to normal.

It was horrifying when many people were worried they could not heat their homes. So it is important to emphasise this good news because high costs have been used to justify high wage deals, that could yet lead to a fresh wave of public sector strikes, if typically weak Stormont politicians suppress their instincts to support and approve most pay demands.

In America, voters made clear that inflation was one of the main reasons that they were unhappy with the outgoing administration of President Joe Biden. But such soaring prices were caused by global factors. First, the utterly abnormal covid lockdown situation, and also the new money put into the economy to help cope with it. And second, the wars in Russia and the Middle East wreaking initial havoc with energy prices.

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It is important that all workers in wealthy countries get paid appropriately for their role, including no-one earning less than a living wage. But high wage deals can help sustain inflation, and so create a spiral.

It is very good to see some normality return in many of these key economic areas in Northern Ireland.

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