What Determines Residential Heating Oil Prices?
Global and domestic factors cause energy prices to fluctuate.
Energy markets are always unpredictable, but they’ve been more volatile than normal in the last few years. You’ve undoubtedly noticed price spikes on your monthly electric bill and at the gas pump. It’s sensible to wonder if there’s any rhyme or reason to fuel pricing.
For Tolland, Hartford and Windham County households that receive heating oil delivery from Homestead Comfort, we work daily to get you the best possible price for your fuel. Let’s discuss some of the factors that affect heating oil prices.
What is heating oil?
To make sense of heating oil prices, let’s first discuss what this product is. Heating oil is a distillate of crude oil. It’s essentially identical to off-road diesel fuel. Heating oil is denser than gasoline. The burner in your furnace or boiler must mist it and heat it to an extremely high temperature for combustion.
The fuel we deliver is ultra-low-sulfur and contains 20 percent eco-friendly biodiesel. It’s called Bioheat® fuel, and it has better greenhouse gas performance than natural gas!
What affects heating oil prices in eastern Connecticut?
Here are some of the main variables that can make heating oil prices rise and fall:
- Crude oil prices — As a distillate of crude, heating oil’s price tracks that commodity. Global energy markets have been shaken recently by COVID-related refinery issues, the war in Ukraine, OPEC production cuts and market speculation, among countless other factors.
- Seasonal demand — Roughly 90 percent of U.S. heating oil consumption happens in the Northeast, so weather patterns here can reverberate throughout the country. An especially icy season can result in higher prices for consumers.
- Operating costs — As with any commodity, heating oil’s price reflects labor, transportation and storage costs. At Homestead Comfort, we do everything we can to keep these costs down.
Homestead Comfort helps you save money on heating oil.
Please know that we want heating oil prices to stay low, just like you. We don’t make more money when prices increase, just like your local grocery doesn’t profit when coffee costs more.
We also have many pricing and payment programs that can stabilize your bills and even save you money. Here are a few offers you can take advantage of today!
- Automatic Delivery — Not only will this no-fee service free you from runout risks, but we also offer you a discount on your first 500 gallons!
- Monthly Budget Plan — Heating oil costs tend to go up steeply in the winter, but not if you have the free plan. We spread your annual fuel expenses across 12 months, cutting your winter bills virtually in half.
- PreBuy — Stop worrying about ups and downs in energy markets. We’ll let you lock in your rate by pre-purchasing your fuel before the heating season.
- Price Cap — This program limits how high your per-gallon price can go — but not how low. We set an agreed-upon cap price for your heating oil, and if the market rate drops below the cap, you pay the lower rate.
Reach out to Homestead Comfort now to see how you can enroll in these heating oil programs.