Trusted by over 500,000 customers for 20+ years
Order online or call 01480 775454 Sign in
Trusted by over 500,000 customers for 20+ years

How does the heating oil supply chain work?

Your heating oil has quite a journey to get from the ground into your tanks. We’re going to quickly cover the heating oil supply chain and where BoilerJuice fits into this journey.

Written by
Camilla George
on 31 Mar 2026
and updated on
31 Mar 2026
Categorised in
Tips and Advice

What is the heating oil supply chain?

Heating oil doesn't just appear in your tank - it goes through a complex journey involving multiple stages, businesses, and global factors before it reaches your home.

At its core, the heating oil supply chain tracks the path from crude oil extraction all the way to delivery at your property. This includes refining crude oil into kerosene (heating oil), storing it at terminals, transporting it across the UK, and finally delivering it via local suppliers.


Where does heating oil come from?

Heating oil originates from crude oil, a natural fossil fuel extracted from underground reserves around the world.

Once extracted, crude oil is transported (often by ship or pipeline) to refineries. During the refining process, it is separated into different products, including kerosene. This kerosene is then treated and prepared specifically for us as heating oil in homes.

Because the UK relies partly on global oil markets, international supply and demand can directly affect availability and pricing.

Inspection of oil tank


Inspection of oil tank

How do heating oil suppliers work?

Heating oil suppliers act as the link between large terminals and households.

They buy heating oil in bulk at wholesale prices and store it in regional depots, ready for local delivery. From there, they arrange deliveries to homes using road tankers, often planning routes to keep things efficient.

Most suppliers operate within specific areas, so prices and availability can vary depending on where you live. Some may also offer services like scheduled deliveries or automatic top-ups.

Supplier pricing is influenced by several key factors, including the wholesale cost of fuel at the time of purchase; storage and operating costs; delivery distance and logistics; as well as local demand and competition. Because of this, prices can differ between suppliers.


How does heating oil get to your home?

Heating oil reaches your home through a multi-step process involving production, storage, and delivery.

The journey typically follows these stages:

  1. Crude oil is extracted from the ground and transported to refineries.
  2. It is refined into kerosene, the type of heating oil used in most UK homes.
  3. The fuel is stored at large distribution terminals.
  4. Local suppliers purchase and store it in nearby depots.
  5. A tanker delivers the oil directly to your property through BoilerJuice.

Each step adds cost and complexity, which is why prices can vary depending on location and timing.

Oil tank inspection

What affects the cost of heating oil?

The price of heating oil is influenced by several factors across the supply chain. While global crude oil prices play a major role, there are other important elements that can impact what you pay.

Seasonal demand is one of the biggest drivers, with prices often rising during colder months when more households rely on heating oil. Transport and delivery costs can also vary depending on your location, especially in more rural areas where deliveries may take longer.

Storage levels and supply availability across the UK can also affect pricing, particularly during periods of high demand or disruption. As a result, heating oil prices can fluctuate regularly, even over short periods of time.

Understanding these factors can help you make more informed decisions about when to order and how to manage your heating costs.

How does BoilerJuice fit into this?

BoilerJuice is an independent online marketplace that helps customers find and order heating oil from local suppliers. We does not supply oil directly or set the prices shown on our platform.

Instead, we work with a network of trusted local suppliers, gathering their prices and presenting the best available options based on your location and order size.

When you place an order:

  • BoilerJuice identifies competitive supplier quotes.
  • You select the option that suits you.
  • The chosen supplier delivers the oil to your home.

This makes it easier to find competitive prices and order heating oil quickly and conveniently.

Get a free and instant quote

Other articles you may like




Thousands of happy customers use BoilerJuice to get the cheapest heating oil