My Heating Oil Prices Are Going Up Quickly — What Can I Do?

Heating oil is an affordable, efficient and relatively clean energy source that is particularly popular in cold, relatively remote areas of the United States. But like any commodity, it is prone to sudden and unexpected price fluctuations.

Several issues can lead to an increase in the price of your heating oil. An extended period of particularly cold weather, for example, usually increases demand, and can lead to shortages. Interruptions in supply from abroad can also cause significant price changes.

When money is tight, even the smallest of energy price rises can leave you out in the cold. If the cost of heating your home with oil is spiraling beyond your means, there are a few steps you can take to get things back under control.

Buy Your Heating Oil Early

By signing up to the right deal, you can secure a fixed price for your heating oil — which could see you through a cold winter. While there’s always a chance that the market price might actually decrease, buying early (usually several months before winter arrives) gives you the certainty you need to plan your finances.

Service Your Boiler

When heating oil is at its most expensive, every drop you can save makes a difference. Simply by keeping your boiler serviced, you can ensure it’s always running efficiently — making the best possible use of every ounce of heating oil. Schedule annual services with an OFTEC-approved engineer, and make your oil last as long as possible.

Pay Using the Cheapest Method

In most cases, paying upfront for your heating oil gives you the best deal per unit. You might be tempted to sign up to a direct debit scheme, which spreads the cost of heating over several months. While this is sometimes the best course of action, you often end up paying interest. And signing up to a direct debit deal also precludes you from shopping around for the best deals when prices go up (unless you signed up to a fixed-price deal).

Heat Your Home Less

There is very little to be gained from having your heating turned up to 11 when you’re not home. Use your thermostat to either set your heating to a timed system or to manage the air temperature throughout the day.

Aim for a heating setting of around 65 to 70 degrees throughout most of the year. During the warmer months, however, run with a setting nearer 60 degrees. If you get used to a setting just two degrees lower than you’re used to, you could reduce your annual heating oil bill by up to 10 percent.

Make Your Home More Energy Efficient

The more heat you can keep inside your home, the lower your energy bills will become. You can offset steeply rising heating oil prices by insulating your roof and your walls. Fit energy-efficient windows, and plug any draughts under doors and around your windows. Around 15 percent of heat loss in the average home is down to badly insulated floors, so make sure you have underfloor insulation or an energy-efficient underlayment.

There’s nothing you can do about the market price of heating oil. But by preparing your home and shopping around for the best deals, you can minimize your exposure to marked price fluctuations.