Since the price of home heating oil varies from day to day, many people wonder whether they’re paying a fair amount for their product. While shopping around for different companies may help you find the best rate, there are a few reasons why the price tends to fluctuate. To help you understand why this happens, here’s more information on how oil is valued and what you can do to reduce expenses. 

What Factors Determine the Price of Home Heating Oil? 

Since home heating oil is derived from crude oil, issues like geopolitical conflicts with the Middle East, demand from other countries, current supply and output, and even the stock market may impact the price of home heating oil. Large-scale storms can also impact the cost, since they bolster demand and reduce supplies. The colder the weather, the more home heating oil may cost, since more people will be looking for it. Government regulations and policies also change over time, taxing heating oil at higher rates to encourage conservation and reduce emissions. 

What Can You Do to Lower Costs? 

Once the market cost of a barrel of crude oil is determined, the product is sent to a wholesaler who sorts the supply and offers it to smaller delivery companies. These businesses have very minimal markups, which means the majority of the cost of home heating oil is determined before it even reaches your supplier. You can save money by buying in bulk, or doing so before the winter, when prices and demand are higher. Some companies also offer discounts for specific groups, including veterans, seniors, and law enforcement officers. 

For affordable home heating oil delivery, turn to Norwich Discount Oil. Serving most of Connecticut’s New London County and parts of Southern Windham County, they have been helping their clients for over 28 years. They fulfill bulk orders and offer discounts for military personnel, seniors, firefighters, and police officers to bring down the price of home heating oil. They also provide 24/7 emergency services. Learn more about their work online or call (860) 886-5508 to discuss your needs.