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Prices seem high? |
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A guide to understanding heating oil prices.
CLICK HERE |
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This chart outlines the average price for
a gallon of residential heating fuel in Dec. since 1990*
| Dec,1990 |
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$1.26 |
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| Dec,1991 |
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$1.01 |
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| Dec,1992 |
$.97 |
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| Dec,1993 |
$.93 |
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| Dec,1994 |
$.91 |
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| Dec,1995 |
$.94 |
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| Dec,1996 |
$1.15 |
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| Dec,1997 |
$1.00 |
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| Dec,1998 |
$.86 |
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| Dec,1999 |
$1.11 |
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| Dec,2000 |
$1.55 |
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| Dec,2001 |
$1.15 |
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| Dec,2002 |
$1.33 |
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| Dec,2003 |
$1.46 |
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| * National US average as
tracked by the U.S. DOE,
Energy Information Administration |
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 eating oil
prices are driven by good old-fashioned supply and demand. That said,
often different consumers pay different prices for the same gallon of
heating oil. Since your oil heat dealer doesn't produce oil, it al
starts with the price that they pay their supplier - this is called the
wholesale price. The street price is the price that you pay. Currently
wholesale prices are breaking records -
follow
this link for a helpful guide that explains why we are all paying so
much to keep warm
Wholesale price - This refers to the price that
your dealer will pay for their supply. Fuel oil is a commodity
and like every other commodity the price is set by the
marketplace. Since heating oil is derived from crude oil, the
market is global and complex and so price is influenced by
numerous factors. That said, like most markets - in the end it
really come down to supply and demand.
Street
price - Just as the wholesale price is set by market forces
so is the price that you, the consumer, will pay. If you look around you
will soon learn that there are several oil heat dealers in your area who
are vying for your business. Most full-service dealers make a profit by
keeping you as a long term customer and want to sell you more than just
the oil; they want to maintain your system, help you with air
conditioning, and provide you with service during emergencies. In
competing for business sometimes dealer's pricing models can seem
complicated. Make sure you shop around for the best deal.
Often different customers using the same dealer all pay
varying prices for their oil. It's important to educate yourself to be
sure you are getting the price and service to fit your needs.
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