November 2025
As the colder weather draws in, households and businesses are preparing for increased demand for heating oil - making this month’s developments in the UK fuel sector particularly relevant. With the government having just delivered the 2025 Budget, there are several new policy items and economic signals that will shape the fuel market in the coming months.
Key Takeaways from the 2025 Budget
Taken together, these moves suggest that while the government is maintaining relief for traditional fuel consumers in the short term, it is also preparing for a structural shift in taxation as EVs become more common.
What This Means for Heating Oil and Domestic Customers
What This Means for Commercial, Agricultural & Transport Customers
What to Watch Going Forward
Outlook for Rix Petroleum Customers
In the near term (next 6–12 months), the 2025 Budget provides a relatively stable taxation environment for fuel and heating oil - helping to keep prices more predictable than they might otherwise have been.
However, in the medium term (from 2026 onward), structural shifts in energy and transport policy - combined with the return of the fuel duty - suggest that fuel demand could become more volatile. For commercial customers, that means building resilience and flexibility will be key. For domestic customers, it’s a good moment to consider energy efficiency measures (how to get the most out of your heating oil, better insulation, fuel-saving strategies, etc.) to mitigate future uncertainties.
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Fuel Market Update - October 2025
As we move deeper into autumn, fuel demand naturally begins to rise. Farms and businesses are busy with seasonal work, while homes across the UK start preparing for cooler months ahead. Against this backdrop, global developments have taken centre stage once again - prompting us to bring this month’s update forward.
Market Trends
Fuel markets have become more volatile in recent weeks following new U.S. sanctions introduced by President Trump against two of Russia’s largest oil producers, Rosneft and Lukoil. These measures restrict global trade with the companies and have raised concerns over tighter crude supply.
As a result, oil prices have risen by around 4-5% since the announcement, with Brent crude now trading near the high-$70s per barrel. The move comes at a time when many economies are already managing inflationary pressures, meaning even modest increases in crude prices can feed through to refined fuels such as diesel, gas oil, and kerosene.
For UK buyers, exchange rates remain another key factor. With fuel traded globally in U.S. dollars, any weakening of the pound can add further upward pressure to wholesale prices - something we are watching closely.
Looking ahead, the UK Autumn Budget at the end of November may also play a role in shaping currency movements. Fiscal decisions and revised economic forecasts could influence the strength of Sterling, and in turn, the cost of imported fuels.
The Impact of U.S. Sanctions
The U.S. sanctions are designed to limit Russia’s ability to export energy and access global finance. While the UK does not import large volumes of Russian crude directly, these measures reduce overall supply flexibility in the global market. As refiners and traders adjust, prices have moved higher in anticipation of tighter availability over the coming months.
This kind of development highlights how quickly international politics can influence the everyday cost of fuel - even for customers here in the UK.
What This Means for Rix Petroleum Customers
At Rix Petroleum, our first priority remains continuity of supply and transparency in pricing.
Despite recent market turbulence, our supply networks means we continue to maintain stable and reliable deliveries across all products.
Looking Ahead
Over the coming months, market direction will depend on several factors - how long U.S. sanctions remain in force, the response from OPEC+ producers, and overall global demand through the winter. While short-term volatility is possible, Rix Petroleum’s strong UK supply position means our customers can remain confident that their fuel needs will be met.
Whatever happens internationally, we’re here to make sure your operations, homes, and businesses stay supplied and supported.
As always, we’ll continue to monitor developments and provide clear monthly updates to help you plan with confidence.
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Fuel Market Update – September 2025
As we head into autumn, both farms and businesses are gearing up for the change in the seasons while domestic heating oil users begin preparing for colder months ahead. This makes it a good time to reflect on what is happening in the wider fuel market, how prices are moving, and what recent developments in UK refining mean for customers.
Market Trends
Global oil prices have been relatively steady through September, with Brent crude trading in the mid-$60s per barrel. This represents a slight easing compared to earlier in the summer, as softer demand outlooks and additional pipeline flows have helped balance the market. For UK buyers, however, volatility is still a theme. Because oil is traded in US dollars, the strength of the pound also plays an important role in determining wholesale diesel, gas oil, and kerosene costs. Even modest shifts in exchange rates can quickly ripple through to farm, business, and household budgets.
The Collapse of Prax Lindsey Oil Refinery
One of the most notable industry stories has been the collapse of the Prax Lindsey Oil Refinery in North Lincolnshire. The site entered insolvency at the end of June after months of financial difficulties, and by July it was moving towards closure. In early September, the High Court froze £150 million of assets linked to the owner, further underlining the seriousness of the situation.
The refinery once represented around ten percent of UK refining capacity, and its closure has prompted wider concerns about domestic energy resilience. Several Prax-associated storage and terminal businesses have also entered liquidation, meaning certain supply points may face reduced capacity or temporary suspensions.
What This Means for Rix Petroleum Customers
While the Prax story has raised understandable concerns across the market, we want to reassure our customers that Rix Petroleum’s supply chain has not been affected, and throughout this uncertain period we have maintained a steady and reliable flow of fuel.
For farms and businesses, this means continuity of supply during a busy autumn season. While some in the industry may be facing tighter logistics, our customers continue to benefit from consistent bulk fuel deliveries for gas oil, diesel, and heating oil. In addition, with winter fuel coming into supply mid-October, we also offer a solution for customers who would like their fuel winterised earlier. This gives businesses and farms peace of mind that their operations remain protected against cold weather, even before the seasonal grade becomes available.
For domestic users, our kerosene supply remains strong, allowing households to order with confidence as they prepare for colder weather.
Looking Ahead
The months ahead will be shaped by a combination of global and domestic forces. Internationally, crude oil prices will continue to respond to OPEC+ production decisions, shifting demand patterns, and geopolitical developments. Closer to home, the closure of the Prax refinery has made headlines, but our customers can be reassured that Rix Petroleum is not exposed to this disruption.
Whatever happens in the wider market, we are here to keep your fuel supplies steady. We will continue to monitor developments closely and share monthly updates, so you always know what is happening in the fuel market and what it means for you.
