Understanding the Game: Reasons Why Heating Oil Prices for Your Home in Hickory, Lincolnton, Mooresville, Statesville, Boone, NC and surrounding areas Fluctuate
Ever wonder why your heating oil prices fluctuate so much and so often? Heating oil prices can vary from time to time and also can be dependent on where a consumer lives. Understanding how factors affect heating oil prices and the cost of energy will help to better understand your home’s heating bills and why they fluctuate month to month. Prices can change for a variety of reasons including:
Competition in local markets can be a large factor in heating oil prices. Areas with a large number of suppliers will have more competitive pricing versus a rural area, which may have fewer competitors, and therefore, higher heating oil prices.
Heating oil prices tend to rise in the winter months when the demand for heating is the greatest. However, there is always the possibility that prices can surge at any time of the year based on demand or low resources. In a typical year for a household that uses heating oil, the majority of the heating budget is spent during winter months, while consuming very little the rest of the year.
Crude Oil Costs
Since crude oil costs are a major component in heating oil prices, if the price of crude oil fluctuates, it will affect the cost of heating oil. Supply and demand drive crude oil prices, with costs varying worldwide based on economy and weather.
Much of heating oil prices is affected by the cost to transport the oil from place to place. Also, the cost of doing business can vary depending on the country or region in which the company operates. Employees’ wages, rent prices, overhead, and state fees can all be factors in driving high heating oil prices.