What Factors Affect the Price of Heating Oil?

Price of Heating Oil

When trying to plan a yearly budget, many customers look at heating oil bills from past deliveries and notice one thing—the fluctuating price of heating oil. In the same way that prices at the gas pump vary depending on a broad range of factors, the price to fill up your heating oil tank with quality fuel can also vary.

Supply and Demand

During the winter, there is the most demand for heating oil. This is particularly true during a harsh and cold winter. For example, if the winter in the Northeast is mild and does not have extended periods of snow or ice, fuel inventory will increase due to anticipated demand. Since the demand was not there, the fuel prices will typically decrease. On the opposite end, if the winter is very harsh, the price of heating oil will increase to reflect the increased demand and lower inventory. Many customers place a large heating oil order in the late summer to lock in the best price. Tevis Energy is dedicated to offering every customer the most competitive rates that we can.

Operating Costs

Another thing that informs the price of heating oil is operating costs. How much does it take to get fuel into your tank? All of the people and costs associated with storing and transporting fuel oil will be factored into the final price of heating oil that you pay. Tevis Energy offers automatic oil delivery customers our best rates, as they allow us to optimize delivery routes and save on operating costs. As a thank you, we pass those savings on to customers.

Price of Crude Oil

Heating oil prices can change on a daily, weekly or monthly basis depending on the price of crude oil. The cost of creating heating oil from crude oil will also inform the final cost. As with other products that are in high demand globally, the global economy, worldwide demand, the US economy, and environmental conditions can impact the price of crude oil and the price of fuel oil.

Where You Live

The last factor that determines the price of fuel oil is where you are located in the United States. Most heating oil purchased in the US is purchased by homeowners in the Northeast. 1 in every 5 homes in the Northeast uses oil heat, and the Northeast makes up almost 85% of residential heating oil sales in this country.

Get the Best Price of Heating Oil with Tevis Energy

If you are out of heating oil and need to request a delivery, contact us today online or by calling (410) 876-6800.  Click here to learn more about our 24/7 Emergency Service.  Tevis Energy is proud to be a family-owned and operated business reliably serving communities throughout Maryland and Pennsylvania with safe, clean-burning diesel and heating oil at a competitive price.

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