Key factors affecting heating oil prices
- 31 March 2017
An obvious starting point is the fact that this is largely a seasonal product, as becomes clear as April approaches and cold nights can settle across places such as Toowoomba and Canberra, Geelong, The Blue Mountains or perhaps just where you live.
Equally, the climate is not a constant, so temperature dips don't happen on the same dates between April and August each year. This is just one of several factors, largely beyond the control of any fuel supplier, that affect home heating oil prices. Let's look at some others.
Crude oil costs
Like all products, the cost to consumers is often largely due to the actual cost of obtaining the basic ingredients. This is certainly true when purchasing crude oil. The fluctuating situation of worldwide demand levels, and the available supply, feed into the costs. It's also possible that those supplying the crude oil product work to control the available supply as a tactic to try and regulate demand and move prices upwards.
Fluctuating marketplace conditions worldwide
Away from our own country, the demand curve for crude oil is never a constant. There are general seasonal trends, but climactic conditions can vary wildly within these, say between one winter being mild and another harsh, or the early or later arrival and duration of seasonal cold weather. Such weather conditions can also cause problems with the delivery of heating and fuel oil, both to and from your distributor. Simply put, demand can occasionally outstrip the currently available residual fuel oil supplies.
Local market competition and operating costs
As with most products and services, the number of available suppliers affects the prices. Consumers certainly prefer a competitive marketplace, which tends to drive prices down. However, operating costs for any distributor are another variant that has to be factored into the prices that are charged for oil fuel heating supplies.
Here at Bulk Fuel Australia, as heating oil dealers and providers of on-site refuelling and fuel storage solutions, we work to mitigate the above factors as best we can to deliver competitively priced and thoroughly reliable products where and when they are needed right across Australia.
If you have any questions about fuel supplies or heating oil for your home, please chat to one of our experienced team by calling 1300 57 9990.