Why Do Heating Oil Prices Change?

Written on: November 22, 2021

Heating Oil Price Changes Explained

Anyone who monitors their finances closely notices when they start paying more or less for something—whether it’s the gas you put in your car or the milk you put in your fridge. Some of these price changes are easily explained. Others price fluctuations might be harder to figure out. Have you ever wondered what plays a role in the price of heating oil? Keep reading to find out.

3 causes of fluctuating oil prices

Here are some things that factor into the price you’re charged for heating oil:

• The price of crude oil: Accounting for up to three quarters of the overall cost of heating oil, the cost of crude oil is one of the most significant factors affecting the cost of heating oil. It’s also subject to constant change. Crude oil is an internationally traded commodity, and so it’s at the mercy of global market forces that are constantly in flux.
• Supply and demand: The vast majority (about 90%) of the heating oil used in the US is used in the Northeast. As someone who lives in Pennsylvania, you know firsthand how much the weather can change from one day or week to the next. A harsh winter will usually lead to higher heating oil prices because demand is high, but supplies are finite. Mild weather will have the opposite effect. When the cost for alternative fuels changes, and there is a resulting change in the demand for heating oil, that can also affect the supply and demand ratio.
• Your region: If you live in a region supplied by a lot of heating oil companies, that allows for competition, and that tends to benefit you as the customer. Living near shipping ports is also advantageous because your provider doesn’t have additional transportation costs to pass on.

Save money with Ace-Robbins

If you’re concerned about the changing cost of heating oil, Ace-Robbns can help. We offer a monthly payment plan that divides your estimated heating payments into 12 predictable, affordable, monthly installments and guarantees you a 15-cent-per-gallon discount on every heating oil delivery. (Senior citizens receive a 20-cent-per-gallon discount.) Plus, you can receive a $25 credit on your next delivery when you set up an online account with Electronic Funds Transfer (EFT).

Whether you live in Bradford, Lackawanna, Luzerne, Susquehanna, Sullivan, or Wyoming County, Ace-Robbins is ready to serve you. Click here to confirm that you live in our service area.

Ace-Robbins is proud of our exceptional service in Northeastern Pennsylvania. Join our family of satisfied customers today. Contact Ace-Robbins for more information or to enroll in our EZ Pay plan.