RURAL communities in the North East have won praise in Parliament after joining forces to push down the price of heating oil.

Mike Murray, voluntary co-ordinator of the North Tyne fuel buying group, and Lauren Langton, his counterpart at the Allen Valley’s Oil Buying Co-operative, said members are saving around 10p a litre ... and even as much as 13.88p.

Pubs, churches, village halls, households, small firms and farms are benefiting from bulk buying organised by the groups in areas not on the main energy grid.

The groups obtain monthly quotes from companies to strike the best deal for members who settle their own bills.

Tim Yeo, chairman of the Commons energy and climate change committee, promised to publicise the work of the volunteers – declaring it would benefit to other parts of the country.

Their actions would also change the conclusions of the committee’s inquiry into fuel poverty in areas not on the main energy grid, said the Tory MP.

Wansbeck MP Ian Lavery, a member of the committee, also praised the groups for doing a “fantastic job.”

Addressing the committee, Mr Murray said: “We exist to help people in remote, very sparsely populated rural areas where the oil companies have made a lot of money over the last decades by charging inordinately high prices.”

He added: “We know that people who pay the most are those who pay for 500 litres of heating oil at a time. We think that anyone buying 500 litres as a member of a group will pay up to 10p less than if they buy themselves.”

Allen Valley’s counterpart Lauren Langton, who lives in Allendale, said the savings had been “significant” – but questioned competition in the sector.

“It became very apparent very quickly we only had a few real competitors.”

She added: “Although I’ve conducted the exercise this week, on Monday, and actually on the morning of wanting to get the order, I got two oil suppliers ringing me for the first time, saying: ‘Please can we quote for your order’?

“I did delight in telling one particular person that she’d been quoting for my order since September and that it didn’t make any difference.”

Mr Murray, who lives in Falstone, Northumberland, said the group started off with three families buying 2,000 litres – but membership had now risen to 75.

It is now placing joint orders with the Allen Valley’s group to get an even better deal – with bulk orders of up to 50,000 litres placed last month, for example.

He said suppliers would be happy to sell a tanker of fuel, with it leaving their depot in the morning full and returning empty.

Members of his group are spread across Wark, Bellingham, Lanehead, Greenhaugh, Tarset, Donkleywood and Falstone.

The Allen Valleys group has 130 members and in written evidence, told MPs that one of its members found a 13.88p per litre difference in the group price from their existing supplier.

Another member found a 12.6p per litre difference on 500 litres – equal to a £63 saving. Another new member found an 11.5p per litre saving on 600 litres, an improvement of £69.

Mr Yeo said: “It is a very refreshing set of answers from you both and very interesting.

“And I am sure this is something which we might try and give a bit wider visibility to because it seems to me a lot of parts of the country might benefit from exactly what you are doing.”

Speaking later, Hexham MP Guy Opperman said: “These two are making such a difference.

“It is an expensive product but there is no doubt that some companies in particular are making significant profits at the expense of consumers who have little or no choice.”