Throughout the season, you may notice variance each month on your heating oil expenses. Though many delivery companies offer plans that make it simple for homeowners to budget, it’s smart to understand what causes the fluctuations in cost. Here are three common causes of the dips and surges in price.
What Affects Your Home Heating Oil Prices?
The colder it is outside, the greater the demand for heating oil. To meet those demands, refineries must have sufficient supply for delivery companies. In the event of a treacherous winter or colder than anticipated temperatures in the fall, homeowners may higher prices.
2. Crude Oil Costs
The pricing of crude oil itself is dependent on global supply and demand, weather conditions, natural disasters, economic concerns, and even the political climate. Refineries determine how much heating oil to produce based on how much they pay for crude oil. If it’s too pricey, they may not make enough to provide to home heating oil delivery companies. A reduced supply will naturally cause prices to rise.
Homes in cold climates have a naturally greater need for heating oil. If the demand in your area is especially high, you will likely notice higher prices. However, not all heating oil delivery companies offer identical rates. A limited number of area suppliers creates rate surges, while more vendors create competition for customers. Delivery services must also factor in transportation costs. Some may assess additional fees based on how much oil your tank can hold.
Prepare your home for the cooler months ahead by investing in quality heating oil from the team at Andersen Oil Company. Serving New London County and surrounding areas in CT, the company makes it easy for homeowners to manage their budgets with a 10-month plan that puts a cap on the maximum amount you’ll spend. This means you never have to worry about fluctuating heating oil prices and how they might impact your financial situation. Since they understand emergencies happen, they’re available 24 hours a day and can be there to assist when you need them the most. Visit the home heating oil delivery company’s website for information about their service and budget plans, or call them at (860) 464-7628.