While Wilson Oil and Propane cannot control what happens with oil prices that are tied to the global market, we can give you some understanding about why heating oil prices rise and fall on a steady basis.
We need to start by looking at the price of crude oil, which is usually the most important factor in the price that consumers will pay for their heating oil. Like gasoline and jet fuel, heating oil is just one of the many products refined from crude oil.
Crude oil is a globally traded commodity, which means that it is subject to many forces that drive its value up or down. So, when crude oil prices are on the high end, so too are heating oil prices—along with gasoline, diesel fuel and many other products.
Even the possibility of a big disruption in the vital energy supply chain heavily influences the buying and selling done by commodities traders. Here’s a recent example: A Wall Street burst of trading activity took place in the months before Russia invaded Ukraine in early 2022. This caused energy prices to rise based on speculation in the stock market about what could happen in the near future if sanctions were imposed on Russia. This is often referred to as the “fear factor.”
After Russia eventually invaded, the U.S. and other countries placed bans on Russian imported oil and other energy products. It left a big void to fill. And as you know by now, energy prices soared even higher as a result.
Before the uncertainty created by the Russia-Ukraine war, oil prices had fluctuated because of COVID-19. In spring 2020, crude oil prices actually plummeted to historic lows when economies locked down across the globe. Oil production essentially ground to a halt.
Another supply-demand issue has centered on diminished oil refinery production. Some refineries closed or scaled back because of the collapse in energy demand in the early months of the COVID-19 pandemic. Additionally, a number of refineries were shut down because they were inefficient, and their profits weren’t large enough for Wall Street investors. Other refineries were closed so that their owners, seeing the proverbial writing on the wall, could convert them to produce biofuels.
We have a proven way to make heating your home less stressful—and it won’t cost you a penny! We call it the EZ Pay monthly payment program. Here’s how it works:
We’ll review your fuel use over the past few heating seasons and estimate what your total bill will be for the coming year. Then we’ll split it into even monthly payments throughout the year. Instead of facing huge bills during the winter, you’ll pay much lower, predictable bills throughout the year. Plus, if you have a service plan, we can spread that annual cost into EZ Pay.
Of course, you’re still responsible for paying for the fuel you get at the price on the day of the delivery, but you don’t have to pay for it all at once. This can be especially helpful when a single delivery in the middle of winter can typically run hundreds of dollars. There is no cost to enroll to EZ Pay.
With this EZ Pay monthly payment program, you can stop worrying about when you’ll need a delivery, how much you’ll receive and how large a check amount you’ll need to write. You don’t pay any more for your heating oil. You don’t get extra deliveries either. If our monthly payment estimate proves to be a little high or low, don’t worry, we’ll make adjustments
A price cap limits how much your per-gallon price can rise, but not how far it can fall. If our retail price drops below the capped price, you pay the lower price.
You can choose either a one-year or two-year price cap plan. Our price cap is determined by the retail market price at the time the plan is offered.
There is a cost for this program because our suppliers charge us a premium for offering the “insurance” that allows us to keep your fuel price from skyrocketing while also giving us the flexibility to lower your price should retail market prices fall.
The Price Cap program does not guarantee you will always save money. But it does give you more stability and protection against price shocks.
Contact us about getting Price Cap protection.