Heating Oil Prices To Go Up This Heating Season Despite Lower Crude Oil Prices

Many people in the United States heat their homes with heating oil. This is a liquid petroleum product that is burned in either boilers or furnaces and is stored on-site in large metal containers. It produces 1385,000 BTUs per US gallon and so is pretty efficient.

The Wikipedia entry on heating oil states that it is pretty similar to diesel fuel. They are often actually the same exact thing and are sold out of the same truck which delivers diesel fuel to gas stations and heating oil to people’s homes. The only real difference between the two is legally based which is that diesel fuel for vehicles and equipment needs to have much less sulfur content. They are also taxed differently as government’s want to take vehicle fuel at a higher rate and the fuel people use to heat their homes at a lower rate.

People and companies that heat their buildings with heating oil need to order it for delivery. It comes in a tank truck that hooks a hose up to their storage tank. These storage tanks are usually located in a home’s basement or garage. Businesses often have their storage tanks buried in the ground.

There are a lot of regulations in place surrounding heating oils, so that it doesn’t leak and pollute the environment, including the local water supply. It needs to be properly transported, stored, and burned in order to minimize negative impacts on the air, water, and ground. It is treated as a hazardous material by the federal government.

In the United States, heating oil is the second most common way to heat a home. People have access to the regular blend as well as blends of biodiesel which burns cleaner than straight heating oil, causing less impact on the environment. The Department of Energy keeps track of the amount of money that homeowners spend on heating oil and makes this information available to the public. Due to this people can easily compare providers of heating oil and see what their neighbors are paying.

As crude oil prices have dropped since September 2018 some homeowners thought they would be able to save money on heating oil this winter season. This article shares that this won’t be the case. While there is a lot of crude oil floating around there isn’t nearly as much refined product on the market. That means that a heating oil wayne nj company won’t see any reduction in the cost of heating their homes.

The federal government had been projecting that heating oil will actually be 20% more than it was during last year’s heating season. This compares to natural gas going up by 5% and the cost of electricity nationally going up by 3%. They have since revised these numbers and believe that the cost of heating oil will still be going up but by 14% instead of 20%. One industry expert called it a supply and demand issue where gas prices are going down but there’s too much demand for heating oil for it to do the same.