AFORMER executive of book-seller Waterstone’s hopes to roll out a new software program to oil-buying clubs across the country to help rural residents reduce heating costs.

Gerry Johnson, 54, a married father-of-three from Oddington, claims his software, which collates orders for oil, is the only one of its kind in the UK fully compatible with all digital platforms, such as PCs, laptops, tablets and smart phones.

After trialling the Oil Buying Club from February 2014, he and his business partner, Julian Jantke, 30, of Headington, launched the product commercially in September.

Mr Johnson said four regional oil-buying clubs had already signed up to the software, including his local club in Merton, Oxfordshire, which he joined six years ago, plus two in Worcestershire and another in Wiltshire.

This represents a combined customer base of between 1,500 and 2,000 individuals, he said.

The exact number is difficult to determine because of the nature of oil-buying clubs, whose member numbers fluctuate.

The clubs consist mainly of rural residents who live off the gas grid, the UK’s main form of heating, and are forced to buy heating oil.

Mr Johnson said a small number of his customers were rural businesses.

By pooling their orders through a club and making bulk purchases, individual oil buyers can negotiate discounts on retail price with oil suppliers.

Mr Johnson, a career retailer who was managing director of Waterstone’s from 2005 to 2010, said the typical discount was between five and 10 per cent.

“The key driver of the price reduction is the efficiency of delivery,” he said. “You have effectively got one full tanker coming to the village to deliver for one day.”

While Mr Johnson provides his proprietary software to oil-buying clubs for free, he generates revenue by charging the oil suppliers a fee of less than 0.5p per litre of oil.

“We charge a small levy, which is a fraction of a penny, through suppliers,” he said.

Mr Johnson said his goal was to roll out the software to other oil-buying clubs across the UK, which he estimates at between 150 and 200.

There is no official figure because oil-buying clubs are not required to register.

David Soward, project manager of consumer rights group Oxfordshire Consumer Empowerment Partnership, said oil buying clubs should register so they can be tracked.

Registration can be done through the Citizens Advice Bureau’s Advice Guide. The guide also provides tips on how to join or set up an oil buying club.

Mr Soward said: “The point about an oil club is it is about clubbing together with other people and getting the best deal possible.”

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