Why Do Heating Oil Prices Fluctuate?
Some common causes for changes in heating oil pricing
If you keep a close eye on your finances, you’ve probably noticed that the price you pay for heating oil isn’t consistent. Sometimes it changes every season. Sometimes it changes from month to month. You may be wondering why.
What affects heating oil prices?
Here are a few of the variables that affect how much you’re charged for heating oil:
- The cost of crude oil: Accounting for up to 75% of the overall cost of heating oil, the cost of crude oil is one of the most important factors affecting the cost of heating oil. It’s also prone to constant change. Because crude oil is an internationally traded commodity, it’s subject to global market forces that are constantly in flux.
- The weather: Roughly 90% of the heating oil used in America is used in the Northeast. As someone who lives in New England, you know firsthand how much the weather can change. An extremely cold winter will usually translate into higher heating oil prices because demand is high, but supplies are limited. Mild weather will have the opposite effect.
- Location, location, location: Living in New England is an advantage because the wealth of heating oil companies allows for competition that tends to benefit the consumer. Living near shipping ports is also an advantage.
- The cost of alternative fuels: To the extent that the cost of alternative fuels increases or lowers the demand for heating fuel, you’ll see a change in pricing.
At Scott Williams, we give you the option to lock in the maximum price you’ll pay for heating oil with a price protection plan. As an EZ Pay customer who receives automatic deliveries, you are eligible to join our Price Cap program. As part of that program, your cost for heating oil can go down, but it can’t rise above a set price—no matter what. Imagine the peace of mind you’ll have this winter knowing exactly what you’ll be charged for heating oil each month.
Scott Williams is a trusted heating oil provider serving Boston’s South Shore, and we are committed to our customers. Whether you’re in Suffolk, Norfolk, or Plymouth County, you can count on us to keep you comfortable and save you money. Click here to see if you live in our service area.
Scott Williams offers our customers reliable heating oil deliveries, service plans, flexible payment options, and tank protection plans. Contact us today to become a customer or learn more.