Low Heating Oil Prices in Norwich CT Are Advantageous for Almost Everyone

by | Apr 14, 2016 | Oil and Gas

When Heating Oil Prices in Norwich CT go down, it’s good news for nearly everyone. Consumers have more money to spend on other things. Heating oil suppliers can streamline their delivery process, since their customers who live on a tight budget can buy more gallons of oil at one time instead of calling more often for smaller deliveries. Heating oil is intrinsically tied to the crude oil market, and the substance is essentially the same thing as diesel fuel, only with red dye added. Lower prices on barrels of oil also mean reduced pricing on gas and diesel fuel, as well as on many consumer goods since delivery costs are lower.

Heating Oil Prices in Norwich CT were substantially higher over the past two years than was the case in the winter of 2015-2016. Homeowners were relieved when the winter’s weather was mild and the heating prices were also low. They had a break from the previous two seasons, which were characterized by harsh weather and high heating costs. Sometimes local suppliers get the blame for those prices, but they cannot control the broader market. Their profit margin can be extremely slim, and they can even lose money when homeowners have paid for an entire season’s oil upfront during the summertime. They still have to buy that oil at market prices throughout the winter, no matter how high the prices rise.

About the only businesses that don’t benefit from lower oil prices are energy companies involved in oil production. Many consumers don’t find that to be much of a concern, since energy companies are known for being immensely profitable. Consumers have had enough of paying more than $3 a gallon to fuel up the car to get to work, and to spend so much of their income on heating their houses.

A local supplier such as Andersen Oil Co. makes every effort to keep costs low for its customers. It offers contract options and payment arrangements so nobody has to go without heat. Homeowners may browse around this website to learn more about this particular company before the next heating season begins.

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