What Can You Do About Increasing Heating Oil Prices?

16 November 2022
 Categories: Business, Blog

It's no secret that there are ongoing complications in the energy market, with heating oil prices reaching surprisingly high levels. Unfortunately, energy markets can be unpredictable, but the good news is that heating oil offers options unavailable to households that heat their homes with gas or electricity. While you can't completely avoid higher prices, there are steps you can take to reduce your costs.

Whether you've been using heating oil for many years or recently purchased a home with a heating oil system, these three tips will help you manage your costs and insulate yourself against unexpected increases.

1. Make Delivery Adjustments

One of the many advantages of heating oil is that you can control how you receive your fuel delivery. Most people choose between two options: manual and automatic delivery. While automatic delivery can be more convenient, it can also mean spending more if your delivery date falls at a time when the market happens to be on the way up. Some companies also charge extra for automatic delivery.

If you expect prices to go up, refilling your heating oil now at a lower price may be worthwhile, helping you avoid expensive refills during the busiest time of the year. Of course, you can combine these methods by filling up your tank now and resuming automatic deliveries in the future when prices seem more stable.

2. Investigate Pricing Options

Most heating oil companies will allow you to purchase your oil at market price or a "locked" price. The market price will fluctuate with the heating oil market and may be noticeably higher during busy months. Likewise, supply shortages and other major global events can influence market prices, making them potentially unpredictable.

On the other hand, you may be able to purchase a quantity of oil in advance at a fixed price. This option allows you to "lock in" your price but may require you to sign a service contract or pay an added fee. If you truly expect prices to increase in the future, switching to a fixed contract for a season may help you save some money.

3. Call Around

It's important to remember that heating oil delivery is a service, and delivery companies must cover operating expenses such as labor, trucks, and more. As a result, market prices don't tell the whole story. Some companies may charge added fees for value-added services, such as smart tank monitoring, automatic delivery, or more.

These extra services can be beneficial (and may even save you money over the long run), but pricing can vary between companies. If you're concerned about your heating oil costs, it's always a good idea to call around and compare quotes. In some cases, you may even be able to save some money by discussing discounts with your current heating oil supplier.

Reach out to a company like Oil Depot Inc to learn more.