There are many factors that can impact on the underlying price of wholesale LPG within the UK, the key drivers being an increase in ‘global’ or ‘local’ demand, OPEC, conflict in oil producing countries, refinery output and down time, distribution and delivery costs and most topically, the £/$ exchange. Add to this the product shortages caused by tropical storm Harvey in North America and you will start to understand why both LPG and Kerosine prices are now at a 3 year high.
With many suppliers now needing to pass on these increases, this has inevitably caused a large churn of Home and Business LPG customers, all now looking for either best ‘switch offers’ or for improved ‘Trading Terms’ with their existing supplier.
Understanding your ‘Trading Terms’ (Supply Agreement) and the associated ‘Terms & Conditions’ is very important. Many Domestic customers, as an example, do feel that they have absolute price security over the full 24 months of their Supply Agreement term yet when they delve a little deeper, and often as a result of a significant pence per litre price increase, they quickly realise that their supplier is able to increase their price, or add a significant surcharge, at any time and without any real justification.
Customers reducing their consumption may also be penalised because some suppliers continue to reserve the right to apply a further price increase to bring customers back into line with what they believe to be the market price for their reduced annual usage.
To find out what you could be paying for your Home or Business Bulk Tank LPG and to compare the LPG suppliers and prices within your postcode area, simply call or mail us FREE on 0800 043 6100
