Heating has always been a necessity, and we use fuels, such as petroleum, heating oil, kerosene, and other oil-based substances, to heat our homes. The cost of all fuel is in a constant state of change, with so many different variables affecting the end price the consumer must pay.
The variables of oil pricing
The main factors that affect the price of oil are,
Ø Global oil prices
Ø Transportation costs
Ø Weather conditions
Ø Foreign exchange rates
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Ø Supply and demand
All of these factors affect the price of oil, which means there are constant fluctuations, plus the VAT levied by governments on all oil products.
Oil exporting nations
The Organisation of Petroleum Exporting Countries, or OPEC as it is known, controls global oil prices. This cartel meets on a regular basis, and they decide on the cost of crude oil, per barrel, according to supply and demand, as well as the oil production figures of the thirteen member countries.
Logistical challenges
The logistics involved in shipping and refining oil are complex. Most of us never consider how the fuel we use arrives at its final destination; we take it for granted that the product will be there when we require it. If you live in Northern Ireland, cheap heating oil is available in Dublin, simply search online for a reputable, nationwide supplier.
Seasonal price changes
The time of the year can have a dramatic effect on prices. Winter is the time when demand soars, as one would expect, so ordering during colder months will invariably cost a little more.
Trouble-free deliveries
Major oil suppliers have an established network, which means your heating oil will be delivered promptly, with the minimum of fuss. Most people will order in advance, and there are easy payment plans, which can spread the load over one year. This is especially important for low-income families, who very much depend on heating oil in the winter months.
Cost effectiveness
Heating costs during the winter can be reduced by weatherproofing the home. Homeowners may want to make sure that their windows and doors are close fitting, and install weather stripping for insulation. North-facing windows in the home can allow the sun in,which will heat that section of the house during the daytime, and windows should have insulated curtainsto avoid heat loss.
Heating oil delivery
Heating oil is delivered by truck to the respective customer’s home, and then it is pumped into underground or overhead storage tanks. Customers whose homes depend on oil for heat during the cold winter months are justifiably careful regarding its cost. As with all petroleum products, the price can sometimes be a bit of a roller-coaster, going up and down, depending on the price of the crude oil from which it is manufactured,as well as additional variables, such as refinery capacity and transportation costs. During the winter months, heating oil is in high demand, and prices tend to rise. Most people will fill their storage tanks in the late summer or early autumn, when prices are lower. Some storage tanks may not have the capacity for enough fuel to last a full winter, which leads to many people having to pay winter prices for extra oil.
