As the heating season gets underway and fuel deliveries begin, you’re probably thinking about the price of heating oil. And if you’re new to living in an oil-heated home—or just never really thought about it before—you might be wondering why heating oil prices can change from year to year, or even day to day.
Ultimately, a number of factors contribute to the price of heating oil. Here’s a look at the biggest ones, and how they affect one another.
Products refined from crude oil include heating oil, diesel, gasoline and jet fuel. Since crude oil is traded globally, many forces drive its value—in either direction. Some of those forces include natural disasters and weather events like destructive hurricanes that can halt operations at refineries. Other forces that determine the price of crude oil include geopolitical events that can affect energy production.
In addition, stock market speculation is a factor. So even when natural disasters and international relationships are not at play, anticipation about what may—or may not—be coming can contribute to how people are feeling, and this reveals itself with the help of the stock market.
The bulk of heating oil used in the U.S. is used right here in the Northeast, and prices tend to rise when we face intensely cold weather. Operational costs for individual businesses—as well as competition between dealers—can also lead to variations in pricing.
We see the issues at work here, and we are here to help! During heating season, Vaughn Oil maintains an ample supply of fuel, so you are never at risk of not getting the fuel you need. If you sign up for automatic delivery, which is FREE, you won’t even have to think about calling for deliveries—we’ll be on top of getting each delivery scheduled.
If you’re looking for a way to ensure more even payments throughout the year, we can help with that as well. You can opt for our fuel Pre-buy program with Price Cap, where you prepay with the guarantee that your price will never surpass the capped price, while still being able to drop if market prices drop.
Another option is our Smart Pay plan, where your costs are spread into even payments over 11 months—you can do this with or without the Price Cap option.
Contact us today to find out more about heating prices and how we can help keep heating oil prices manageable for your Rhode Island home this season.
