Rural and off-grid communities can save as much as 10p a litre on the price of their heating fuel by teaming up with others in their local area. The claim comes as the energy and climate change committee begins an inquiry into fuel poverty for off-grid customers today.
A rise in fuel costs has recently inspired some village communities to group together to buy heating fuel in bulk to get a cheaper price.
According to Mike Murray, who runs a domestic oil buying group in North Tyne Valley which has 75 members, they make big savings by ordering up to 50,000 litres a month in one go.
Giving evidence at the Commons inquiry, Mr Murray told MPs the group formed to avoid “inordinately high prices”.
His comments appear to challenge comments from one heating oil chief who earlier dismissed the latest phenomenon of oil buying groups as a “mixed blessing”.