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£600 to fill up a tank of home oil

Shock for householders as prices rocket £2 a day

By Lesley-Anne Henry
Friday, 30 May 2008

Householders across Northern Ireland were today braced for more financial hardship as the cost of home heating oil is set to break the previously unthinkable threshold of £600 for 900 litres.

The shocking figures represents a 20% increase — almost £2-a-day — since prices broke through the £500 mark for the same amount last month.

In November 2007 customers were paying about £400 for a 1,000 litre fill and back in March 2002 it cost just £159 for 900 litres of oil — that's a whopping 277% increase by today.

And the devastating news comes just days after Northern Ireland Electricity (NIE) announced a 14% surge in bills from July and warned of another rise in the autumn.

Earlier this year, Phoenix Natural Gas announced a 28% rise in its bills last month and water rates are still looming.

Food bills have also shot up by 20% in recent months and petrol has been tipped to reach £1.50 a litre by the summer after crude oil rose to a record breaking price.

Diesel is already costing over £1.20 in many forecourts.

Last week the price of oil hit record a high of $135 a barrel which compares with $100 a barrel last year and just $22 in 2002.

The Consumer Council now estimates that the basic cost of living in Northern Ireland is up by almost £2,000 higher than last year.

The latest heating oil figures mean families who top up their tanks three times a year could have to fork out £2,700 on home heating which when added to relentless rises on other everyday essentials like food costs, petrol and electricity makes for tough times.

In Northern Ireland fuel poverty levels stand at 34% £ double that in the rest of the UK — and there are fresh fears that figure could increase this winter if fuel prices continue to rise at such an alarming rate. Fuel poverty is said to occur when a household pays more than 10% of its income on energy bills.

Measures aimed at helping vulnerable and elderly people with their fuel bills were due to announced today by the Government in London.

The Telegraph contacted some of the largest oil distributors on Wednedsay to compare prices and found that customers in the west were facing the highest bills. Of the 20 quotes received in the snap survey Maxol Direct in Enniskillen was the most expensive charging £590 for 900 litres.

Also topping the list were Knockbracken Fuels in Carryduff where customers were asked to pay £585 for 900 litres, Campbell Fuels in Armagh charged £569, Hugh Ritchie in Newtownards cost £571 and Morgan Fuels which delivers to Armagh and Down was £581.

The cheapest outlets included Leckpatrick Oils in Strabane where 900 litres was £555, Carlisle Fuels in Ballynahinch were charging £557 and Morrow Fuels in Lisburn were £559.

Compare this to a similar snap survey carried out by this paper in March 2002 when customers were urged not to panic buy after prices reached £159 for 900 litres of oil.

According to independent oil price comparison website Cheapestoil.co.uk home heating oil prices have been consistently rising this year with the only noticeable drop between mid and late January when prices fell from an average of £400 to £375 for 900 litres.

With prices now almost hitting £600 this is the equivalent of a 60% increase in cost in just under four months and experts are predicting that prices rises will continue.

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