What Determines the Cost of Heating Oil?

Posted: December 25, 2023

Vaughn Oil helps you control your heating oil costs

heating oil Providence County, ri At Vaughn Oil, we pride ourselves on providing our customers with fair, competitive, and transparent prices for heating oil.

But that’s not all. We go above and beyond to deliver exceptional value. Along with our affordable prices, you can count on dependable heating oil delivery and expert equipment services from a trusted local business.

Factors that affect your heating oil prices

While heating oil prices reached considerable highs last winter, it is crucial to recognize their susceptibility to fluctuations. When prices remain moderate and stable, individuals tend to be content with lower bills. However, sudden price increases pique consumers’ curiosity about the factors that impact heating oil prices, driving them to seek a deeper understanding of the reasons behind these fluctuations.

Here are some things that make a difference in how much you pay for your heating oil.

Crude oil pricing: Heating oil is obtained from crude oil, and therefore, its price is heavily influenced by the cost of crude oil. Being a commodity, the value of crude oil is determined by the interplay of supply and demand. Consequently, any factors that affect the global economy or the supply of crude oil will inevitably impact the expense of heating your home.

Seasonal supply and demand: During the winter months, when demand is at its peak, heating oil prices tend to rise. However, in the summer, these prices reach their lowest point. At Vaughn Oil, we make it a priority to secure our supplies during the summer when prices are most favorable. This enables us to pass on the savings to you, ensuring that you benefit from affordable heating oil throughout the year.

Operating costs: Heating oil prices are subject to several factors, such as labor costs, transportation expenses, and storage expenses. These factors, much like in other industries, have an impact on overall pricing. For example, when gasoline and diesel prices rise, it leads to increased costs for delivering heating oil supplies, operating transportation trucks, and servicing our equipment vehicles.

Weather: Did you know that the Northeast region is responsible for consuming the majority of heating oil in the country, accounting for a staggering 90% of the nation’s usage? This implies that events occurring in this area can have a direct impact on the prices you pay for heating oil. The primary determinant of these prices is none other than the weather. When winters turn bitterly cold, the demand for heating oil surges, subsequently leading to an increase in prices.

Vaughn Oil helps you manage your heating oil costs

Traditionally, heating oil costs are managed by paying for each delivery. However, this approach can lead to hefty bills during winter, when additional expenses like holiday spending, tuition payments, and taxes arrive.

That’s why we offer pricing and payment options that help you efficiently manage your heating oil costs.

Monthly Smart Pay Payment Plan: Experience the convenience of our plan that evenly distributes your heating oil costs into 11 easy monthly payments. This ensures a clear understanding of your monthly bill, making expense management and budgeting a breeze. You can also add Price Cap to this plan.

PreBuy with Price Cap: Maximize the opportunity to secure your heating oil in advance of the heating season, when prices are generally more economical. By committing to the purchase of the necessary gallons for the entire season, you can lock in a capped price and ensure savings.

AutoPay: Never again worry about payments being on time with AutoPay! We automatically deduct your payment from your checking account or debit card.

If you are struggling with paying your heating oil bills, please don’t let fear or pride keep you from reaching out to us before you fall behind. We’ll work with you on a solution. Also, you can contact your local Low-Income Home Energy Assistance Program (LIHEAP) for help.