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Frequently Asked Questions About Heating Oil
Heating oil is the main heating fuel for nearly 8.5 million Americans. Given the climate of the United States, heating oil is not needed year-round, which makes this a seasonal petroleum product. Due to changes in winter temperatures, the cost of heating oil has experienced great fluctuations over the years. To understand these fluctuations, it is important to understand the use of heating oil, how it is produced, and more.
*This information is adapted from an article from the United States Department of Energy website.
Who uses heating oil?
Although homes throughout the entire country use heating oil as a means of heating, the Northeast relies on it the most due to their extreme winter conditions. Peak usage times for heating oil occur between October and March.
Where does heating oil come from?
There are two main sources for heating oil: domestic refineries and imports from foreign countries. Often times, the oil is refined and then stored for later use as distributors cannot match the oil consumption during the peak months.
How much does a gallon of heating oil cost?
Heating oil prices vary based on a number of factors, including:
- Cost of crude oil
- Cost to produce heating oil
- Cost to market & distribute heating oil
- Profits and losses of refiners, wholesalers & dealers
Why do heating oil prices fluctuate?
Heating oil prices paid by consumers can vary over time and by where a consumer lives. Prices can change for a variety of reasons. These include:
- Seasonal demand for heating oil
- Changes in the cost of crude oil
- Competition in local markets
- Regional operating costs
What can you do to lower your heating oil bill?
There are many steps homeowners can take to lower their heating oil costs, including:
- Have tanks filled in late summer or early fall, when prices are lower
- Obtain a home energy audit
- Add a programmable thermostat and other energy-efficient tools
- Research Federal and State energy assistance programs
- Enroll in auto fuel delivery to ensure on-time service, and a worry free mindset
What Causes a Surge in Heating Oil Prices?
The cost of heating oil can change drastically, even over a short period of time. There are a number of reasons this can happen, including:
- Temperatures dropping drastically, causing a steep increase in demand
- Rapid and increased usage depleting stores faster than they can be replenished
- If heating oil stores decrease rapidly, supplies must be imported, therefore increasing the price due to the cost of shipping, etc.
Hometown Fuel LLC is based in Newtown, CT, and serves clients across area communities. To schedule your next fuel delivery, contact us today!
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