Written on: September 9, 2024
When it comes to home budgets, everyone wants things to be as predictable as possible. No one likes to discover that their preferred cereal has gone up in price or that the gas pump rates are higher than expected. (Unfortunately, we’ve had a fair amount of those surprises in the last few years.)
At Swezey Fuel, we know from 100+ years of experience that home heating oil is not immune from ups and downs in the marketplace. The per-gallon rate for the heating oil we deliver fluctuates on a daily basis. We’ve been serving homes in Islip and throughout Suffolk County during periods of ample supply and relatively low prices, as well as times when the opposite is true. Indeed, only a couple of years ago, we were seeing almost unprecedented spikes in heating oil prices. Thankfully, the price of our fuel has dropped since those painful highs.
In this article, we will discuss the various factors that contribute to fluctuations in heating oil prices — and how we can help you avoid unpleasant surprises with the cost of your heating fuel.
Most heating oil is a distillate of crude oil, which means that the price of the fuel Americans use in their oil heating systems is affected by events far outside of our country. That extreme spike we mentioned earlier was the result of Russia’s invasion of Ukraine and subsequent embargos on Russian energy. It was exacerbated later when OPEC cut oil production. Other global issues that can impact oil costs include refinery disruptions (as we saw at the height of COVID-19), weather events, supply chain interruptions and commodity market speculation.
It’s worth noting that the heating oil that Swezey delivers is not 100% petroleum. We sell and deliver Bioheat® fuel, which is a blend of ultra-low-sulfur heating oil and organic, renewable biodiesel. Not only is biodiesel much better for the planet; it’s also made by American farmers and producers!
U.S. heating oil distribution and consumption also play a role in pricing. Demand for heating oil is seasonal, meaning its price tends to rise in colder parts of the year. Over 80% of our country’s heating oil consumption happens in the Northeast. So, a blizzard, nor’easter, cold snap or other extreme winter weather event in our part of the U.S. can make prices spike across the country.
Finally, there are production costs that impact the price of fuel, including the cost to store and transport heating oil to end users. At [company] Fuel, we have long-term relationships with trusted suppliers, and we work hard to keep our operating costs low.
While our local heating oil company can’t do much to affect global conflicts, international refinery operations or regional demand for heating oil, we are dedicated to providing customers with fair, transparent pricing. And we have a program to make your heating fuel budget more predictable — and lower your winter costs, too.
With the Swezey Fuel EasyPay Budget Plan, you don’t need to pay for your full fuel delivery when we fill your tank. Instead, Swezey Fuel estimates how much heating oil you will use annually and how much that will cost. Then, we divide that cost across 11 months. You’ll always know how much you need to pay, and your winter fuel spending is slashed in half. Want another reason to enroll? We give EasyPay customers a discount on heating oil for continuous enrollment!
Now’s the time to stabilize your heating oil expenses. Get in touch with Swezey Fuel to enroll in an EasyPay budget.