Factors That Determine Heating Oil Prices in Groton, CT

Home heating oil is still used in many parts of Groton, CT. There are many houses in the small city that are powered by oil based boilers. These boilers are noticeably large in size, which is why many houses have separate rooms where the boiler is installed. Heating oil is a separate mixture that contains petrol-driven hydrocarbons and burns considerably longer than ordinary oil. However, whereas the prices of electricity and natural gas are mostly fixed, oil prices are in continual fluctuation. Heating oil prices in Groton, CT tend to vary depending on several factors.

International Crude Oil Prices

The prices of crude oil in the market have a huge impact on the prices of home heating oil. For instance, at the moment, the prices of crude oil in the international market are very low. As a result, heating oil prices have also fallen drastically in cohesion with the broader market. On the other hand, oil prices hit new highs just a few years ago. At the time, companies expectedly raised the prices of home heating oil to balance their own supply chains.

Local Competition

There are several companies that supply home heating oil in Groton, CT. Some companies might give you a cheaper rate than others. That’s just due to the local competition in the industry. Companies that have stored more oil when the prices were low are able to benefit from greater profit margins. They can also give discounts on heating oil prices to attract more customers.

Bulk Orders

Most companies are interested in establishing relationships with regular customers. If you are ordering in bulk, a company might give you a significant discount. However, before placing an order, you should get your storage tank inspected by a heating engineer to confirm that there’s no leakage in the tank and that all the valves are working properly.

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