What Influences Heating Oil Prices?
There are many factors involved that impact how much the fuel costs
If you use heating oil to heat your Southeastern Massachusetts home it would not surprise us at all if you have found yourself in the following scenario at one point or another: you place an order for a supply of fuel and pay a certain price. Then, before too much time has passed, you place another order for the exact same amount of fuel and suddenly find yourself paying a very different price. This is because heating oil prices are constantly fluctuating.
Why heating oil prices change
Like the price of many goods and products, the price of heating oil goes up and down. And then it goes back up again. This happens for a few reasons:
- Outdoor temperatures and the current climate: It probably won’t come as much of a surprise to many of you that when we’re in the midst of a particularly cold winter (which we all know can happen where we live!) the need for heating oil increases, which causes the price of the fuel to increase.
- Supply and demand: The above point ties directly into the basic concept of supply and demand. When a product is more in demand and needed (i.e., heating oil in the winter), prices will be higher. Alternatively, when a product is less in demand (i.e., heating oil in the spring and summer) prices will be lower. This is part of why ordering the supply of heating oil that you are going to need come winter while it is still warm out can help you save some money!
- Outside costs: There are all sorts of delivery and transportation costs associated with heating oil, including the cost of labor, gas and storage. When those prices go up, the price of heating oil will be directly impacted as well.
- How much crude oil costs: Since heating oil comes directly from crude oil, a change in crude oil pricing will equate to a change in heating oil costs.
How to save on heating oil costs
Global price fluctuations or not, it is always nice to figure out how you can save on heating oil related costs if you are a homeowner. Fortunately, this can be relatively easy to do. Here are some tips that will add up in cost savings when it comes to your heating oil bills:
- Add insulation to your home and seal up any drafts: You can add warmth to your home without using more heating oil by adding insulation, which will help trap warm air. Additionally, you can seal up any drafts you might have around your home’s doors and windows.
- Upgrade your home’s windows: If your home has older windows, consider an update. Some newer models of windows are made with an air gap that functions as a layer of insulation. This is supposed to keep warm air in your home.
- Don’t skip out on professional maintenance: Annual tune-ups and professional maintenance are the best ways to ensure that your heating system is working properly and efficiently. An efficient heating system that is functioning correctly will help keep your heating related costs as low as possible.
Heating oil from W.H. Riley & Son
If you are a homeowner in Southeastern Massachusetts who needs heating oil, W.H. Riley & Son can help. We can deliver top-quality fuel directly to your door. On top of that, our licensed and certified technicians can handle both furnace and boiler heating system maintenance.
Contact W.H. Riley today to lock us in as your new full-service heating oil provider.