Here at T&M Fuel you will always get the best price in the region for fuel oil delivery. And we will always beat a competitor's price. All you have to do is give us a call at the office to make it happen.
But still, why do heating oil prices fluctuate so often and sometimes - by so much?
The answer is that oil prices are actually not determined by your fuel oil provider, but by a really complicated combination of global, regional and local factors.
So what are those factors?
First, there's the price of crude oil - if you remember the Beverly Hillbillies television show - crude is basically the "black gold" that Jed comes across while "searching from some food." Crude is refined to make usable fuel oil. Most (as much as 70 percent) of our fuel oil price depends on the cost of the crude oil from which our fuel comes. As a commodity that's globally-traded, crude oil is subject to lots of market factors. Factors including:
OPEC (Organization of Petroleum Exporting Countries) - OPECs member nations control how much crude is extracted, produced and exported. By controlling supply, OPEC and member nations are a major determinant of crude oil price (and ultimately of the price you pay for your heating oil). Member nations can slow production, or increase it to drive pricing. It comes down to supply and demand. If OPEC nations are producing less crude oil at a time when demand is heavy (winter), then prices will increase based on that demand. Add to this the instability of many crude producing nations, their conflicts with the West over political or other issues, sanctions placed on some of these countries, weather events, and wars - prices fluctuate often and in response to events largely out of our control. Thankfully, over the past several years, innovations in extracting fuel from "shale oil" (rock), the United States is currently a major fuel producer worldwide. Prices have become more stable since these developments in 2018.
Then, there's weather, weather, weather - and it's impact on demand! More than 90 percent of the U.S. market for heating oil is right here at home - in the Northeast, so our weather tends to determine oil prices nationwide. When a winter is particularly cold - crude oil prices and therefore heating oil prices increase because of high demand; when it's milder - heating oil prices tend to be more level or even decrease.
There's also competing vendors. So in areas like ours, the Greater Attleboro/Taunton and some part of Northern Rhode Island, where there are lots of choices for your fuel oil delivery, sometimes fuel oil prices are lower than in more rural or other areas. Also, being close to a shipping port city can impact the price a person pays for heating oil.
Finally, there's the price of alternative fuels – When the cost to use natural gas, propane, and other fuels rises, which it has been doing for several years, many homes switch to heating oil, which raises demand and typically drives up oil prices often in the short term.
It really is complex. And unpredictable. Anyone who tells you different - well, they're just not being truthful.
But there is something that T&M Fuel can guarantee you - and that's the best price for fuel oil delivery in our Service Area. Again, if you find a competitor's price lower than ours, please give us a call. We're happy to beat any price, and we're happy to provide you with exceptional, flexible, and people-focused service. Our customers become members of our family - and we take pride in ensuring that you receive a 5-STAR experience.
Give us a call - or schedule your delivery now and see for yourself!
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