Rising oil prices exacerbate cost-of-living crisis in County Derry

Oil prices in County Derry have risen at an alarming rate over the last week as Russian president Vladimir Putin's invasion of Ukraine continues to increase in intensity.

Energy prices have been on the rise for some time within the county.

A recent 33.6% hike in gas prices announced by Firmus Energy, while last week SSE Airtricity announced a further 39% increase will add £244 to the typical household gas bill.

However, the Russian advance on Ukraine has resulted in a surge in demand, which coupled with a limited supply has seen prices rocket.

Data available on Cheapest Oil, a Northern Ireland-based price comparison site shows how starkly the average price of oil per litre in the UK has risen since Putin invaded Ukraine on February 24.

Russia's invasion of Ukraine began on February 24.

On February 28, the average price per litre was 73.8p. By March 7, the price had risen to 108.2p per litre, a rise of 46.6% in just over a week.

On the day of Putin's invasion (February 24), the average price per litre was 68.7p, meaning since the invasion began, prices in the UK have risen by 57.5%.

In County Derry, a search of the area's postcodes yesterday revealed an ever-lessening range of companies, with just two or three options available for customers.

Across all areas in the county, the cheapest price for the delivery of 900L of oil was £985, while anyone wishing to order 500L would pay no less than £555.

Campaign group Derry Against Fuel Poverty held an event last Friday in Coleraine rallying against the rising energy costs.

Group spokesperson Sinead Quinn said the global crisis could not be used as an excuse for a lack of government intervention.

“We're being contacted on a regular basis by people who are chronically ill, mothers with young children and working people who simply can't afford to heat, eat or light their homes,” she said.

Local oil prices

Who the fuck in Derry can afford this?

Petrol & diesel dearer than ever before

When people can't afford to drive to work, maybe we will see some movement! pic.twitter.com/sflQ9RGd0h

— Derry Against Fuel Poverty (@derryantipov) March 7, 2022

“A cold house and an empty fridge serves as a stark reminder of the situation we're facing on a daily basis.”

“We know that the Stormont government had time and money to deal appropriately with this cost of living crisis. It was forecast early in 2021 and being felt keenly in our pockets in early Autumn 2021.

“We won't forget opportunities that were turned down like the opportunity to reinstate the £20 a week Universal Credit uplift cut or to adequately address the crisis with a wider energy support scheme.”

With the world's second largest oil supplier now under international sanctions, supply is also becoming an issue for local oil companies, a number of whom suspended online deliveries last week.

Local sources told the County Derry Post companies had been forced to switch off their phone lines, while other reports suggest some people being placed on a two-week waiting list for deliveries.

Some larger oil companies limited the available stock for customers to buy, while many of the smaller oil companies are having extreme difficulties sourcing oil.

Paul Maxwell, owner of city-based Maxwell Fuels, said if the current trend continues, his livelihood could be in jepoardy.

“As a business owner, if it keeps going the way it's going, I'll not survive, there's no chance,” he told the County Derry Post.

“We're scraping here, trying to go round different companies and buy oil off them, but most of them are refusing us, because their allocation has also been slashed.

“We have overheads and stuff to pay, but we have no product to sell to pay for those overheads. I'm doing this now 12 years and most of my customers are from working class backgrounds.

“A lot of them pay up over three or four weeks, so I would give them the heating in advance, but I can't even offer that now, so they've nowhere to turn.

“I'm a sole trader, here on my own, but there are people worse off than me. People are going cold; that's worse than me not having a product to sell.

“Imagine sitting at home with kids. People with a good stable job are struggling, so people out of work, for whatever reason, can't heat their homes.

“Some of the text messages I'm getting are heartbreaking, people pleading if I've any oil I can give them. We don't have product to give them.”

Emergency Council meeting later this week on cost of living

While the Derry man is in agreement with the international sanctions placed on Russia, he feels they are having a detrimental impact on local people.

“I tell customers that you're not going to get MPs going cold, that'll never happen,” he said.

“It's brilliant that Russia is getting sanctioned, but that's having an impact on the UK and Ireland in terms of fuel.

“Our government is putting sanctions on Russia, but we're paying the price for it. The worry is, if Russia isn't exporting oil, then there's not enough around and the price goes up further.

“Heat is a human right; everyone should have access to heat and a roof over their heads and they don't, because it's too dear.

“A guy rang my phone ten minutes ago and said 'I have £30 here, how much can I get for that?'. It would be nearly a drum and a half of oil.

“I was advised not to speak to any journalists, but we need to get the message out that the fault doesn't lie with us who are delivering the fuel.

“We're not making any more profit than we were before. The long-term impact will be small oil companies going to the wall,” he added.

Derry Against Fuel Poverty protest outside Firmus Gas

Harkin: "People are desperate for action and unfortunately, there is not enough of that happening"