What Affects Heating Oil Prices?

Poore’s Propane can stabilize your home heating costs.

oilheat costs Kent county, MD We don’t need to tell you that prices have risen recently. Last year saw the highest inflation U.S. in 40 years. In the grocery aisles, on car dealership lots and at the gas pump, families in central Delmarva and Pennsylvania’s Chester and Delaware counties are feeling the financial squeeze.

At Poore’s Propane and Oil, we appreciate that home heating fuel is an essential need. It keeps your family comfortable and safe all winter. So we work every day to ensure you receive the best possible price for heating oil delivery. Here are some of the major drivers of heating oil prices in our part of the country.

Weather-related seasonal demand

As you might imagine, supply and demand significantly affect how much your heating oil costs. Fuel prices increase when temperatures plummet and snow falls in the Northern U.S. To try to mitigate this, our team secures as much fuel as we can when prices are lower and passes those savings on to you.

We also recommend that customers fill their heating oil tanks in warmer months. There are numerous benefits:

  • Heating oil prices tend to be lower.
  • Our drivers have more availability when the weather is warm.
  • Having a full oil tank in the summer reduces condensation, which slows the corrosion of your tank.

And don’t worry — heating oil’s shelf life is 18 and 24 months. It won’t “spoil” over the summer.

Global energy markets

Some heating oil price factors originate far beyond your country’s borders.

Heating oil is a distillate of crude oil, like gasoline and diesel. So, its price tends to track crude’s price on commodity markets. International market forces considerably impact your per-gallon rate. For example, 2020 saw refinery production slowing because of COVID-19. Last year, the U.S. cut off Russian oil supplies after the invasion of Ukraine, and OPEC slashed production. Happily, prices have settled somewhat since their painful heights in 2022.

These market forces are especially aggravating because Wall Street speculation often worsens it, with commodities traders looking to make a quick buck.

You can trust us when we say that Poore’s Propane and Oil doesn’t make more money when oil prices go up — no more than your local grocery sees more profit from higher milk prices.

Operating costs

Labor, transportation and storage — these daily expenses also affect heating oil costs. They can get worse when there is a supply shortage, and we need to turn to more distant suppliers for fuel. But we’re committed to keeping our operating costs as low as possible.

SmartPay takes uncertainty out of heating oil bills.

How can you find some stability when heating oil prices fluctuate? Poore’s Propane and Oil offers a free program to our customers called the SmartPay Monthly Budget Plan. Instead of paying in full for your heating oil on delivery, you can spread out your fuel costs throughout the year. You’ll always know how much next month’s oil will cost, and your winter expenses will drop dramatically.

You don’t spend more than the price of the heating oil you receive. We’ll adjust your plan if our initial estimates prove to be too high or low. And you’ll receive a rebate for each month you have a credit balance on your account!

Want to enroll in SmartPay? Reach out to us today.