Home heating oil prices

Why are home heating oil prices so high? It is important to understand what home heating oil is and where it comes from to understand tbe price concern.

Heating oil is a petroleum product used to heat homes, mostly those in the Northeastern portion of the United States.

Refineries in the U.S. produce the oil, as well as some foreign countries, from which we import it. It is produced as part of the distillate fuel oil family, and not as part of the regular refining process, and thus it is not a priority for the refineries. The fuels is transported all over our country by use of trucks, railways, barges, and pipelines. When the home heating oil reaches the consumption area, it is sold to the individual companies that supply it to the end user.

So what can be done to control the price of home heating oil? The market runs on supply on demand so there is no conspiracy here. In the cold winter months, heating oil is most in demand, but the cold weather usually prevents the oil from being shipped as quickly or sometimes at all. Thus, the supply is not able to keep up with the demand, and the end consumer suffers by paying much higher costs. There are some things that can be done to help reduce the amount that one pays for heating oil though, so don't get discouraged. Once can have their tank filled in late summer or early fall when oil prices are statistically lower. The end user can also get a home efficiency audit to determine if their home is energy efficient. This will definitely save money in the long run, and is advisable. As a last resort, low income families can have their heating and cooling needs met by the Low Income Home Energy Assistance Program at the ACF site. Read up on your home heating oil distributor's website and see if there are any fixed cap programs that would allow you to pay a fixed fee for your heating oil. Whatever you do, stay informed and look at alternative energy as an alternative to gas, electric, and heating oils.