What effects the price of heating oil

The price of heating oil is generally determined by supply and demand. The law of supply and demand is not an actual law but it is well confirmed and understood realization that if you have a lot of one item, the price for that item should go down. At the same time you need to understand the interaction; even if you have a high supply, if the demand is also high, the price could also be high.

Heating oil prices are also affected by the price of crude oil, refining costs and distribution and marketing costs. Just like gasoline and natural gas, the price of heating oil is ultimately set by the marketplace. Competition in areas with multiple suppliers or dealers may impact prices.

Households located in remote locations may pay higher prices. Competing petrol suppliers or different forms of heating fuel are often not available to rural consumers which makes the supplier that does have fuel available able to charge whatever he needs because there is a high demand and low supply.