The Relationship Between the Cost of Diesel Fuel and Home Heating Oil in Groton, CT

People who drive vehicles that run on diesel fuel can easily become frustrated when the price of diesel spikes significantly higher than the price of gasoline. Interestingly, one reason for the price difference is intrinsically tied to the home heating oil market. Diesel fuel and heating oil are essentially the same product. A car that runs on diesel can safely run on heating oil, and an oil furnace can run on diesel fuel. However, Home Heating Oil in Groton CT and elsewhere is dyed red to distinguish it from fuel that powers vehicles. This doesn’t identify any difference in function, but allows heating oil to avoid the taxation required for diesel fuel. Diesel, like gas, is heavily taxed, and those taxes are intended to offset some of the cost of road maintenance, repairs, and construction.

Diesel is actually taxed at a higher rate than gasoline because heavy trucks use this fuel and cause more wear and tear on roads. That makes diesel more expensive. The relationship to the heating oil market involves increased demand for the substance during the winter months. Prices for heating oil, like the cost of liquid propane gas, tend to go up as the temperatures drop and more people are buying the product in large quantities.

There isn’t much drivers can do to avoid paying more for diesel fuel when prices rise. However, homeowners can keep their heat costs down by buying Home Heating Oil in Groton CT with smart strategies. For example, they must contract with an organization such as Andersen Oil Co. and buy the entire season’s fuel before winter arrives. Paying for the season’s fuel during the summertime allows people to get it at a much lower price than paying for it delivery-by-delivery throughout the cold months.

Many heating oil services have other affordable options for people who can’t afford to pay that large amount of cash up front. For instance, signing a contract to have the company regularly bring oil at its convenience instead of scheduling individual deliveries with phone calls usually comes with a lower per-gallon price. Please click for additional info on this supplier.