Wondering How Your Furnace Oil Price is Determined? Here’s What You Need to Know
If you’re like many homeowners, fuel costs play a substantial role in determining your household budget. However, you probably also wonder how a furnace oil price is determined — and you may have also noticed that the prices your friends or relatives in different parts of the country vary from the prices that you and your neighbors pay and even that your own prices seem to fluctuate from time to time — and consumers often find this frustrating. Listed below are five factors that help determine fuel oil prices.
Fluctuations in Crude Oil Prices
Crude oil prices have been all over the place in recent years, and that’s largely due to the ups and downs of the global marketplace. The cost of crude oil can change as a result of weather conditions, natural disasters, and political events. Prices also fluctuate depending on the overall amount of crude oil being produced during any given period of time.
Seasonal demand also plays a big part in the furnace oil prices, particularly for those who live in areas with substantial temperature differences between winter and summer. Prices of fuel tend to go down when temperatures warm up and the demand is low. In most areas of North America, demand and prices are both at their highest from October through March.
Local Market Competition
Local fuel suppliers sometimes engage in price competition strategies designed to lure customers in their direction. However, it’s important for consumers to bear in mind that switching companies to take advantage of a promotional furnace oil price probably won’t result in any significant long term savings.
Those who live in rural communities will probably pay a higher price for their fuel oil than their counterparts who live in more populated areas. Not only are transportation costs high when it comes to getting fuel to rural communities, but these markets are also commonly served by only one or two suppliers, which means there isn’t enough competition to keep costs down.
Fortunately, strategies exist designed to help consumers keep household heating costs at reasonable levels. Options include home weatherization projects, installing ENERGY STAR heating units, and keeping furnaces in the best possible working order.
The Bird Fuels Difference
Being a locally-owned family business, we’ll always go above and beyond for our customers when it comes to service. That’s a promise that you can always count on. Bigger isn’t always better in today’s business world and we at Bird Fuels are proof of that. And while we’re always working to grow various business divisions, we’ll never stop working to serve you with the personal touch and high level of service that we’ve become known for over our 16 years in operation. When you do business with us, you become an extension of our family. And when it comes to family, you can rest assured that we’ll take care of you.