As you may have noticed, the price you pay for home heating oil can change – sometimes quite a bit – from one heating season to the next. The question is, why does this happen?
Mostly, oil price volatility is linked to the fluctuating cost of crude oil, which is a globally traded commodity and subject to a number of market forces that drive its value up or down. The cost of crude oil typically accounts for about 70 percent of the cost of home heating oil.
But crude cost is not the only factor that influences the price of home heating oil. Other contributors include:
With so many variables in play, heating oil prices in Long Island and elsewhere in the U.S. can be nearly impossible to predict – which is a big reason why we offer a Heating Oil Price Protection Program.
With price protection, your heating oil cost will never exceed your contracted price, no matter how high the market goes – and when the market falls below your contracted price, you will pay the lower amount.