We’ve all been there. We do it with almost every consumer product. We shop around, do our research and check prices. However with most products the more you dig, the more you can save but when it comes time to compare oil prices the experience is quite different. Sometimes “waiting” will cost you a lot. How much? It is not uncommon for prices to surge 20% from late summer to early fall.
The price per gallon will change weekly, daily or even by the hour. But why? Well here are a few of the big reasons:
- Seasonal Demand: The heating season is really between October and April in New England. So it makes sense that in the summer months when demand is lower, the price is lower. What does this mean for you? Don’t wait! You know you’ll need oil for next winter so after you’re done with the BBQ, take a few minutes to order some oil. You could save 10-20% just by ordering early.
- The Price of Crude: At the end of the day, the price you're paying is ultimately dictated by the price of crude oil...and this is very much a game of speculation. Factors such a politics, weather or even elections can push prices up and down in mere moments. While it often takes weeks for the prices for heating oil to change, it’s always important to keep an eye on things. As boring as those global events may seem at the time, if you hear anything about crude, you might want to move.
- Competition: Where you live can greatly impact your local price. The more players in a market, the more competitive the prices tend to be. The great thing about Slick is that we’ve done all that hard work and already offer you the best price!
- Location: Most of the stuff we put in our tanks comes from Canada via Supertankers. The closer you live to a port the less cost associated with transporting product. In other words the more remote you are, the more likely you are to pay a higher price.
- Big Storms: Those nasty nor’easter’s can really wreak havoc on delivery routes. A typical company may deliver 200-500 orders per day during the season. You can imagine trying to drive an oil truck at the peak of a storm. What happens when the trucks aren’t on the road? They have to fit those same 200-500 deliveries into the next few days. Often times when there is a snowflake on the 7 day forecast...prices will rise and it can be steep.
While prices can change drastically (Hurricane Katrina raised prices .50/gallon overnight) most day to day changes are less than .05/gal. But that .05/gal adds up quick over the matter of a couple of weeks. Generally you should order when your tank is less than ¼ full.
A typical home in our area will need about 800 gallons for the year. Most of this will be used between Thanksgiving and April Fool’s Day, so it usually averages out to 1 “fill” per month during the winter.
Have we convinced you that you need oil yet? We have the right price!
Stay warm out there.
