The cost of home heating oil has almost halved over the last 12 months, the Belfast Telegraph can reveal.

Industry experts have confirmed that prices were this week averaging around £302 for a tankful compared to £543 in May last year.

It’s good news for consumers, but it comes as oil last week leapt above $60 a barrel for the first time in six months, prompting fears that price hikes could be on the way.

However, householders are being reassured by analysts that there won’t be a return to the exorbitant tariffs they faced last summer.

Information provided by a leading price comparison website for the Belfast Telegraph has revealed that in July 2008 the average price of 900 litres peaked at almost £600.

The founder of cheapestoil.co.uk also indicated that, since then, there has been a progressive fall in cost, with home heating oil hitting a low of £277 two months ago in March.

New data has also shown that the biggest drop in price over the last 12 months was between September and October when the average price of 900 litres fell by more than £80 from around £500 to £418.

At just over £300, average prices have this month remained the same as they were in April.

A spokesman for cheapestoil.co. uk said that Northern Ireland remains more competitive for home heating oil than the rest of the United Kingdom and the Republic.

“The highest average price we recorded last year was around £600, based on online cash/debit card prices,” he said.

“For the last three months, though, prices have averaged at between £250 and £300, so the good news so far has been half price heating oil compared to less than a year ago and fewer fluctuations and price jumps.”

The spokesman said that although prices have remained “generally steady”, an increase in the coming months this year seems likely.

“Prices have been creeping up since February but no-one is predicting we will see anything like last summer’s prices this year,” he added.

“Opec has stated that it wants crude oil at $60 a barrel,” said the spokesman.

“This means that if the value of the pound remains roughly what it is now, average prices could rise to around £400 for 900 litres — about £100 more than what they are now.

“Prices can be considered low at the moment so now would seem like a good time to buy,” added the spokesman.

OFTEC (Oil Firing Technical Association) today welcomed the substantial drop in prices, calculating that they fell from £586 for 900 litres last July to £300 last month, based on 30 distributors.

“The price of home heating oil has fallen by almost 50% since July 2008,” said the organisation’s spokesman David Blevings.

“This is excellent news for around 500, 000 home owners in Northern Ireland who use oil,” added Mr Blevings.

“The latest independent figures from Sutherland show that the annual cost to heat a three bedroom house with a non-condensing boiler has fallen to £1,018, which is £61 a year cheaper than using wood pellets, £276 cheaper than house coal and £381 cheaper than electric heating.”