The outlook for heating oil prices going into this winter was for stable or even lower prices—great news, amid worries about inflation and how tariffs may or may not affect the cost of goods. In fact, according to the U.S. Energy Information Administration, the United States produced more crude oil than any nation for the past six years in a row.
Supply is a key driver of the price of heating oil, and right now, it’s helping keep prices stable.
But when the cost of heating oil spikes, we know it can be frustrating. And while we can’t control the cost of heating oil, we will always strive to deliver great value and offer ways to help manage costs even when prices aren’t as low as we’d like.
There are four main factors that affect the price of heating 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.
Heating oil prices always go up in winter, when demand is high. Likewise, 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 pre-buy and fixed price plans.
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 have to pay more both to get heating oil supplies delivered to us, and to run the trucks that deliver to you.
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 reliable delivery service plus options to help you manage costs no matter what happens with prices or how cold it gets. Our Budget Plan spreads home heating oil costs over 11 months, so you can avoid bills that spike in the winter.
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.