While heating oil prices have come down compared to where they were just a year ago in 2022, they will always fluctuate. The last few years have been a bit of a roller-coaster, which we know all too well. And when prices fall, most people are just glad their bills are low. But it’s important to understand what influences heating oil prices, so you can be a better consumer.
We know how important it is for you to have a dependable source for heating oil delivery that won’t break the bank. But it’s important to understand the difference between a discount price and a good value. We will always do our best to keep prices fair and transparent, while we strive to deliver great value—like reliable delivery services and expert service and repairs, plus ways to help manage costs even when prices aren’t as low as we’d like.
There are four key factors that affect the price of heating oil:
1. The cost of crude oil. Heating oil is derived from crude oil, which is why the price of crude oil has the largest impact on the price of heating oil. Because crude oil is a commodity—a raw material that can be bought or sold—its own price is driven by the laws of supply and demand. That means the global economy and any issues that affect the supply of crude oil will affect how much you pay to heat your home.
For the past year, the war in Ukraine has played a big part in global prices, but it’s not the whole story.
2. Seasonal demand. Heating oil prices always go up in winter when demand is high. On the other hand, in summer, heating oil prices are at their lowest. We do our best to secure supplies for the winter when prices are low so we can pass those savings on to you, particularly through our fixed price and capped price plans.
3. Regional operating costs. Labor costs, transportation, and storage costs contribute to the price of heating oil just as they do for other businesses and industries. For example, when gasoline prices rise, we must pay more both to get heating oil supplies delivered to us, and to run the trucks that deliver to you.
4. The weather. In addition to seasonal demand, the weather can play a big role in heating oil prices. When temperatures plunge, even in another part of the country, increased demand can drive prices up for everyone. And, in areas like the northeast, supplies may be coming from much farther away, which takes longer and costs more. This increases anxiety about short-term supply and drives prices higher.
If you use heating oil in your home, you already know it’s a great value! Clean-burning and efficient, it provides steady, reliable heat energy at an affordable price. And as a Southville customer, you understand that value isn’t just about rock-bottom prices. Real value comes from dependability, quality fuels, convenience, and personal service.
Southville delivers added value with expert service you can count on, plus plenty of options to help you manage costs no matter what happens with prices or how cold it gets.
When you’re looking for a heating oil provider for your home or business, you want a company that puts customers first. That inherently means offering fair, transparent pricing, but it also means offering true reliability, with products and services designed to make your life easier.
To learn more or become a customer, contact us today.