What Determines Home Heating Oil Price?
Save on fuel costs with Cape Cod Oil & Propane
If you have ever found yourself driving around and have noticed that the price of standard gasoline seems to vary from gas station to gas station your eyes aren’t deceiving you – this can and does happen. It is also no secret that the price of gas can change from month to month or even week to week. The same thing happens with the price of heating oil.
If you are curious as to why, keep on reading. Cape Cod Oil & Propane breaks it all down for you below.
The factors that affect the price of heating oil
- The price of other fuels: If the price of other available fuels, such as propane, increases, this will drive up the price of heating oil as well.
- How much crude oil costs: Since heating oil is refined from crude oil, the prices of the oils are directly linked and correlated. If there is a global shortage of crude oil or crude oil production cuts, the price of heating oil will be directly impacted.
- Politics: You may not think that something like politics would affect how much heating oil costs, but indeed it does. For example, if a new policy is put into place that will cause heating oil production to decline, the fuels price will go up.
- The weather: We all know it typically gets cold out here on the Cape. However, if we happen to be having a warmer than usual winter you will find that heating oil is less expensive. Alternatively, prices go up when we get hit with exceptionally cold winters and temperatures.
- Local competition: If you live in an area where there is a large number of heating oil suppliers and, therefore, a lot of local competition, heating oil prices will likely be more expensive than heating oil that is sold in an area where there are very few heating oil providers.
- Associated costs: There are all sorts of associated costs tied to heating oil. This includes production costs, transportation costs, storage costs and distribution costs. When any of these costs rise, the price of heating oil will be directly impacted.
- Supply and demand: Most products are affected by the basic concept of supply and demand and heating oil is no exception. When heating oil is in high demand (like it is in the winter) it will cost more. This is part of why it is recommended to order your fuel in the spring and summer.
How Cape Cod Oil & Propane helps with your heating oil costs
Cape Cod Oil & Propane can’t control things like politics and the price of crude oil. However, we do our very best to help our loyal customers out with their home heating oil costs.
Not only do we work hard to get our customers the most competitive fuel rates, but we also offer a no-fee Monthly Budget Plan to stabilize your heating oil costs and help lower your winter utility bills. This plan lets you spread your oil costs evenly over the course of 12 months.
Homeowners here on Cape Cod who are in need of a reliable heating oil provider should contact Cape Cod Oil & Propane today to learn more about the services we provide throughout the area.
