Fuel oil prices increase abruptly week after week and this is quite alarming for consumers in the global sense. Transporting fuel oil to other places or countries for resale even adds up to the cost that consumers have to pay. Here’s a website that shows you current heating oil prices in your area: Home Heating oil prices on Long Island
The problem even gets worse when the transportation industry go on oil price hike and travelling from one place to another becomes harder than usual. This causes delays or interruptions in your business transactions and even your career. So how can you deal with such an issue and save money on fuel oil?
Understanding Fuel Oil Prices – Its Types and Characteristics
Fuel oil has various types. Each kind of fuel oil as its own characteristics that makes it unique from the other and suitable for its own specific purpose. Below are the types of petroleum-based oil that needs to be considered when talking about beating the ever-increasing fuel oil prices.
- Home Heating Oil – This is sometimes called as the regular fuel oil. Technically, this is #2 fuel. This type is not so flammable as compared to other counterparts. This makes it very ideal for home use.
- Kerosene – This is referred as the #1 fuel oil or even considered as lamp oil with added fragrances. The more refined type of kerosene is known as the jet fuel type A. Oil under this category is refined than the #2 type of oil.
- Diesel Fuel – This is classified as #2 fuel oil and basically used for diesel-powered engines or automobiles. The concept of adding dye to diesel fuel is to get to know and distinguish between taxed and untaxed diesel for exporting purposes. If the diesel fuel shipped to a certain country is undyed, this means that the process maybe untaxed or lower-taxed fuel. If it is dyed, then it is surely taxed or even considered as higher-taxed diesel fuel.
- #4 Fuel Oil – This is sometimes called as bunker oilas this is used specifically for stationary machines or engines, huge commercial boilers, and power plants.
- #6 Oil – This is used for making asphalt for pavements. Usually boiled in commercial boilers, #6 oil contain contaminants that includes sulphur and nickel. The importance of oil burner service on Long island, new york
- RM Oil – This is just a mix of oils #2 and #4. This is basically used as the fuel for diesel locomotives.
Now that you have the basic list of oil types that are being sold by the oil industry on a global basis, it is high time to know why there are fluctuations in the prices of oil on a given time. You would also want to know why is there an ever-increasing price range for fuel oil wherever you may be. How can you beat or overcome oil costs daily?
Top Factors for Heating Oil Prices Fluctuations and Price Increase
The sudden oil price fluctuations and it endless increase yearly is quite alarming not only to the United States and other well-established countries or regions, but even more for the developing countries. There are various factors that contribute to this global market problem. Others are obviously apparent while other factors may still be hidden or may not be considered as a contributing factor by most individuals and societies.
- Balancing the Supply and Demand Chain
This is all about analysing the law of supply and demand in the global market’s oil industry. What the world actually have now is a clear picture of an imbalanced supply-demand oil concept. There is obviously an ever-growing demand for fuel oil in various countries worldwide yet oil supply is getting smaller each day.
Some people put the blame on the United States for their endless and even growing demand for oil supply. Others say it is an individual approach that anyone can make a powerful solution if only given careful study and action to beat the problem. Whatever your opinion may be, the bottom line here is that developing countries suffer much on this oil issue as compared to the giant nations.
- The Middle East Turbulence
The Middle East is considered as the world’s main supplier of petroleum-based oil to various regions all over the world. The 9/11 bombing and other reported suicide bombings made the oil supply and demand chain unstable.
These two are just the top factors that are truly obvious to the oil issue. If we will closely examine these top 2 factors here, it is not good to blame one after the other. What happened, already happened and there’s no great use crying for any spilled milk, right? What we can do is to be responsible as individuals.
Top 3 Ways to Beat High Fuel Oil Prices
1. Install motion detectors. This is not for fun but you can actually have fun when you see the difference from your bills and receipts when you compare values with and without using motion detectors in operating heating, lighting and other appliances.
2. For discount heating oil, choose the payment plan that suits you best.
If you are trying to save and store heating oil for the winter or even for the whole year, you have 3 payment options that most oil companies offer to their customers. Your choices could be paying for the locked-in price, the market price or the pre-purchase plan.
The locked-in price keeps both the dealer and the consumer in safe hands. In this plan, the dealer provides the consumer with a fixed price per gallon for a year. In addition to the fixed price, you also need to think of the capped rate, the highest amount the consumer needs to pay within 1-year agreement. It is usually the consumer who pays less and get more savings here.
If you are not sure if you can do well with the locked in price plan, then the market price payment option could be your best match. There are no contracts or deposits to be made here. All you need to do is to pay for the fuel price upon delivery.
Another plan you could go for is the pre-purchase option. This is only advisable if you can afford to pay for your oil consumption for the whole year before any agreed delivery.
- Take that hedge.
This is like an insurance or service plan wherein you get protection and other benefits that you can enjoy. This varies from every company or supplier so you need to do your research to meet your perfect mate here.