| To understand the constant fluctuations of heating oil | | | | to region mostly involve distribution and competition. |
| prices where you live, it's important to understand what | | | | Distribution: Areas that are more rural and difficult to |
| factors influence the price of heating oil where you live. | | | | get to will experience some of the highest prices of oil, |
| The Source of Heating Oil | | | | because the cost of delivering the oil is more |
| Heating oil comes from sources both inside and | | | | significant. However those locations in the country that |
| outside the United States. Regardless of where it | | | | are actually nearby refineries or major pipelines often |
| comes from, heating needs to be refined by refineries | | | | enjoy much lower oil prices. |
| within the United States. The U.S. imports most of its oil | | | | Competition: Even though the dealer markup is small, |
| from the Virgin Islands, Canada and Venezuela. From | | | | when there is enough competition in a certain area |
| the refineries to our homes the oil takes an interesting | | | | among oil dealers, this markup may shrink and |
| trip through pipelines, barges, trucks, and even by train | | | | costumers will see somewhat lower oil prices than |
| in some cases. Refineries must balance what type of | | | | surrounding communities. |
| product they produce based on season, because they | | | | How to Save on Heating Oil |
| can't produce both gasoline and heating oil at the same | | | | History teaches consumers an important lesson about |
| time. For this reason, refineries store up heating oil for | | | | heating oil prices. The most powerful weapon a |
| the colder seasons, however when gasoline demand is | | | | consumer has to fight high heating oil prices is |
| high, heating oil supplies at the beginning of the cold | | | | purchasing power. By finding alternate fuels, we can |
| season are typically lower, driving prices up. | | | | reduce the overall price of heating oil permanently. |
| Why Heating Oil Prices Differ by Location | | | | Several ideas include: |
| Many residents within the Northeast part of the | | | | - Better insulate your home |
| country notice that home heating oil fluctuates even as | | | | - Buy more fuel efficient vehicles |
| you move from town to town. Often those | | | | - Heat your home with other fuels |
| differences don't seem to make sense, however they | | | | - Avoid buying products made with petroleum products |
| are based on a number of factors that, when they are | | | | In addition to consumers' collective power to control |
| all taken into consideration, make perfect sense. | | | | demand, in the United States they also enjoy the |
| The overall price is determined by the cost to produce | | | | power of a democracy. This means that consumers |
| the oil, how much it costs to distribute the oil to that | | | | can direct their elected officials to make sure that |
| particular part of the country, the costs of refining, and | | | | alternative clean energies are researched and |
| a small markup by dealers. According to the | | | | discovered. The only way the world will be able to |
| department of energy, these additional costs are | | | | detach from dependence on foreign oil, and the political |
| estimated at about 46% of the overall cost of heating | | | | and security ramifications that come along with that, is |
| oil. | | | | by changing how the country is fueled. |
| Most of the differences that people notice from region | | | | |