3 Factors Affecting Heating Oil Prices in Norwich CT

Heating oil is the most efficient and cost-effective way through which commercial buildings and homes are heated. The oil is put in the boiler heaters to keep buildings warm during the winter. Even though the Heating Oil Prices in  Norwich CT have been considerably low compared to other heating alternatives, in the past few months the prices have significantly gone up in most areas. This increase in prices has made millions of people feel a great difference in their bank accounts.

While the oil companies are trying to push for higher prices, consumers, on the other hand, are doing all they could to avoid heating their homes because they can no longer afford it anymore. Consumers have generally become more cautious on how they use oil. One of the ways they are using to ensure that they reduce their oil usage is adjusting their thermostats.

Reasons for higher heating oil prices

There are many factors that determine the prices of the heating oil, and they are:

Seasonality in the demand for the heating oil

Lately, there has been an increased demand for heating oil. High demand has made has forced almost every oil companies to shoot up the prices of heating oil consistently over the past few years. The prices are even higher during the winter months when the demand for oil is higher compared to other months. Both in the country and the world at large, many homes and businesses are, as a result, using more money on oil simply because it is a necessity in the winter in many areas.

Competition in the local market

The prices of the heating oil will be higher in remote or rural areas where there are fewer competitors compared to urban where there is a large number of competitors.

Change in the cost of crude oil

Crude oil is the main component of the heating oil and therefore changes in its price will generally affect the prices of the heating oil.

With the fluctuation of the Heating Oil Prices in Norwich CT, you will need a reliable supplier. One of the companies that is well-known in this industry is Anderson Oil Company. Get additional info here: andersenoilcompany.com about the services that they offer.

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