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How will the falling oil prices affect you?

Updated on February 4, 2016

As everyone knows, the price of oil has slumped dramatically as of late to the extent that many across the world are left bamboozled that this has happened when for years we were told that it would never see such a dip again. What are the ways in which this will benefit the consumers?

It’s a boon for everyone

The biggest area where a slump in oil prices is going to really help the consumer is the home energy market. The reason for this is that since it is going to be cheaper for the energy suppliers to buy the fuel at wholesale prices, this in turn means that the reduction will be getting passed onto the consumer.

The same is also true of fuel for your car whereby diesel and petrol prices should also see a dip since effectively the big companies like Shell, Esso and BP are getting the barrels of crude oil for a lot less than they were previously.

Thinking more broadly, it could also mean that the price of other items may also come down such as food. This in itself is tied into the fact that since the cost of fuel has plummeted, it also means that it is costing less to transport the food from factories to supermarkets and ideally the supermarket chains will in turn push these prices down the line to the consumer.

Not all companies are passing on this price reduction

Sadly, not every company has felt the need to be passing on this reduction to the consumer. Instead, two of the largest energy supply companies in the UK have decided that they will keep this to themselves.

Whilst BP have also not really passed this discount onto the customer (a litre of petrol from them is about 1p higher than the competitor), it is Npower and Eon that have decided that they’re not going to pass it on. There is no legality issues in this whereby Eon is not actually charging so much more compared to the other big six that they’re breaking any anti-trust laws. However, that is where the crux lies.

They honestly are not breaking any laws, but they are breaking the trust that they have with their customers. Reputation is a big part of any companies success, especially when it comes to energy companies. It certainly does not look good that when even British Gas who have in the past been notorious when it comes to not slashing energy prices have actually done so.

With the pretty horrendous winter that the UK is currently experiencing, this lack of price cut on the part of Eon is going to be heavily criticised for months to come and their stubbornness on this sheer defiance of a price cut could seriously hurt their reputation in the years to come. Of course, they may now decide to cut the prices in line with the competition, but unless they make a cut to the extent that they will actually be undercutting the other members of the big six energy companies it may be too little too late for Eon.

Getting in contact with your supplier

If it is the case that you’re a customer with Eon and you now want to get out of your contract with them over this debacle, you might be able to do so. As mentioned above, it is unfair that they are not passing this discount onto the customer. However it may simply be the case that you are not wanting to leave them but to pass on a compliant instead.

If it is the case that you are phoning to complain, be sure to make a second phone call to the disconnections team. If you suggest to them that you are unhappy with this situation and are thinking of leaving then they will almost certainly offer you a reduction in order to stay. If you are still stuck in a locked contract with them then this discount might be enough to get you to stay until your contract ends at which point you could then move to a cheaper supplier.

Also, whilst it isn’t exactly the easiest thing to do for everyone, you can be more energy savvy around the home if you are locked into a contract and don’t want to pay the early penalty fees. Even things like not leaving the lights on, not having the heating on full blast and switching to energy saving bulbs can really go a long way over time to cut your bill. If Eon isn’t going to slash their prices for you then fight fire with fire and slash the amount of their energy that you use. To contact them you can do so here


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