Heating oil is a petroleum product that is widely used by homeowners to keep their homes warm in the chilly months. According to records, the price of home heating oil fluctuates every year because of the increased demand in the winter months.
The major customers are mostly residential consumers and the demand is highly seasonal, especially during the months of October to March. Also, it is important to know that Northeast countries are most dependent on such heating oil.
Heating oil price also depends on the price of crude oil, production, marketing, manufacturing. This can also include the cost of refiners, dealers, and wholesalers. To get the heating oil at affordable prices, you can even contact Long Island oil companies.
Here are a number of reasons why the prices of heating oil fluctuate.
Seasonality of the demand – Since the demand for heating oil differs on the season, the prices steadily increase during peak seasons. On an average, about 650 to 1000 gallons of heating oil is expected to be used only during winter.
Crude oil price change – A big share of the heating oil prices also depends on the price of crude oil. With this case, it is expected that the cost of the crude oil fluctuates directly on such factor.
Competition in the local markets – Due to the fewer competitors in the local marketplace, customers in the rural or remote areas usually have to face higher prices for the cod fuel Long Island.
Regional costs – Regional costs mean operating costs that cover the transportation of goods from one place to another. It also includes the costs of doing business dealings while considerably depending on the place or region.
This can cover salaries and wages, pieces of equipment, employee interests, overhead costs, leases or rents, insurance plans and even government fees such as taxes and various other local fees. Get more information on heating oil prices.
However, there are many companies which offer discount heating oil prices. These companies deal with a lot of suppliers who indulge in the wholesale supply of home heating oil and also involve in transactions with big industries.