If you own or are in the process of buying a home that’s heated with oil, you’re likely worried about heating oil costs. If you’re already the owner of a house that uses heating oil, then you know the prices can fluctuate greatly within one season. So how can you be sure your heating bills will remain within budget? What causes heating oil prices to rise and fall? How are heating oil prices determined? Find out now.
Demand for Heating Oil
Probably the most obvious reason, one of the factors that fluctuate the price of heating oil is consumer demand. Naturally, the demand for heating oil is much higher in the cold season. As it gets colder (think October to March), the cost of heating oil will typically rise slowly. Because of this, be sure to check in with your local heating oil provider towards the end of summer to see if there are any discounts you could take advantage of.
Cost of Crude Oil
While the consumer demand for heating oil does play a part in the price fluctuating, we can’t forget about the rest of the world’s need for oil as well. Heating oil is made from crude oil, and crude oil is needed by everyone. Crude oil is the base for all refined petroleum products. With its vast amount of purposes, the ever-changing demand for crude oil is the primary reason heating oil prices fluctuate. Not every country produces oil either. So the political relationships of oil-producing countries can also influence the price of heating oil.
Local Oil Suppliers
Oil prices don’t just vary on a countrywide or even statewide scale either. The cost of heating oil can depend on how many suppliers are available in your area. The more suppliers, the lower the cost. Fewer suppliers in your area means less competition and more demand for that company, so you’re likely to pay more. The costs of running a heating oil business can also vary depending on the area they’re in. Is the supplier near a fuel staging and supply area? Is the area they’re delivering to mostly rural or urban? All of these factors affect how much it costs the supplier to distribute and deliver heating oil.
Why Do Heating Oil Prices Change?
It’s a culmination of things. The price of heating oil is affected by the worldwide need for crude oil, the time of year, how many suppliers are local to you, and much more. A good heating oil supplier will do their best to keep prices within reason and deliveries consistent.
Heating Oil Supplier in Southeast Pennsylvania
Are you a Pennsylvania local like us? Bucks County Fuel is a family-owned business and has been keeping PA warm for over 10 years. That’s why we offer the most competitive oil rates that are completely free of credit card and delivery fees. You can also rest assured that with Bucks County Fuel, you will have a reliable supply of fuel oil year-round. Whether in sleet or snow, our business won’t leave you out in the cold. We are always on standby to ensure that your tank is supplied with the heating oil you need. We’re there whenever you need us.
