Your Guide to Affordable Heating Oil
An estimated eight million American households rely on heating oil to keep warm during the winter months. In portions of the Northeast, oil is the primary source of heat in more than 50% of homes. For these families, finding affordable fuel oil is a key priority when colder temperatures roll in. One difficulty in this is that heating oil prices are notoriously vulnerable, and each supplier adds on their own delivery and administration costs.
So how can homeowners find affordable heating oil? One key is to understand the factors that affect the price of oil on a month-to-month basis:
- Foreign events Of all the factors affecting the cost of heating oil, this is one of the most misunderstood. According to the U.S. Energy Information Administration (EIA), 85% of heating oil is produced domestically. The rest is imported, primarily from Canada, Mexico and the Caribbean. This means prices are less subject to fluctuation due to events overseas than most consumers suspect. Therefore, finding cheap heating oil is less about keeping up with world news and more about choosing a supplier you can trust.
- Seasonal demand Heating oil is a commodity, which means prices spike in periods of peak demand. When temperatures begin to drop, expect the price of oil to rise accordingly. One way to avoid this is to purchase in summertime when prices are low — a tactic employed by larger heating oil companies with the infrastructure necessary to store fuel for extended periods.
- Administration fees Oil refiners, suppliers, brokers and delivery companies all contribute to the cost of oil. The longer the supply chain, the more fees you'll incur. Therefore, choosing a company that has well-developed connections and is proactive about managing their own overhead costs is one of the best ways to save money on heating oil.
- Delivery fees Oil heat is used primarily in remote or rural areas of the Northeast. As a result, heating oil delivery prices can vary from supplier to supplier and location to location. As with admin fees, companies with larger networks and a greater reach are more likely to be able to keep delivery costs consistent.
Everyday Discount Heating Oil From Smart Touch Energy
Many fuel suppliers will boast periodic discounts on heating oil prices, typically when demand is low. However, only Smart Touch Energy offers unbeatable everyday low prices to customers throughout the Northeast.
We are a Shipley Energy company, which means we are part of one of the largest networks of fuel providers in the country. As a result, we have the buying power necessary to keep our prices up to $0.40 lower than EIA averages. Our online ordering platform means we also don't have the expense of maintaining a brick-and-mortar location — additional savings we are proud to pass on to our customers.
Homeowners who make us their exclusive supplier of heating oil can save up to $200 a year. Sign up for our Automatic Delivery program, and you'll receive an extra $0.03/gallon discount on our oil prices. Find out more by continuing to browse our website, or check current oil prices in your region by entering your email address and ZIP code into our secure online form.