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Heating oil costs paid by consumers are identified by the expense of petroleum, the price to generate the product, the cost to market and disperse the product, as well as the revenues (in some cases losses) of refiners, wholesalers and dealerships. Heating oil prices paid by customers can vary gradually and by where a customer lives.
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These include: Seasonality in the need for home heating oil - When petroleum costs are stable, home heating oil prices have a tendency to slowly increase in the cold weather when demand is highest. Nevertheless, at times, rates can rise swiftly to really high degrees, as happened in January/February 2000. A homeowner in the Northeast may use 650-1100 gallons of heatingoil during a regular winter, while consuming very little during the remainder of the year.
Unrefined oil costs are identified by around the world supply and need. Competitors in local markets - Affordable differences can be considerable between an area with only one or a couple of providers or dealers versus an area with a huge number of competitors.