Sponsored Article: How the weather affects the pricing of home heating oil

Sponsored Article: How the weather affects the pricing of home heating oil

“When is the right time to buy?” – This is a question commonly asked by those who heat their properties with oil. In order to ascertain a reasonable answer, it’s important to remember that are a number of external mitigating factors which can affect how much people can expect to pay for their home heating.

Oil is generally more expensive during the winter months, due to the rise in demand across the Western world. Conversely, customers are more likely to pay lower rates during the summer months. Although this is not always strictly the case, companies such as Web Oil face their fiercest competition in terms of pricing during the months of June and July, which can make stocking up during the warmer seasons a money-saving idea.

Ultimately, weather conditions play a huge role in the price for home heating oil. As temperatures begin to drop, customers are more likely to keep their heating on for prolonged periods of time, therefore increasing the demand for oil. Worsening weather conditions like snow storms or flooding can also have a significant influence on the logistical costs for oil distribution companies, as transportation is likely to be affected in such extreme conditions, inevitably leading to price rises. Some of the more inaccessible areas of the UK (such as the Highlands of Scotland) are often virtually inaccessible during particularly harsh weather conditions, and this is reflected in the winter pricing structures.

Supply prices are also likely to vary depending on the location of a distributor. Those living in rural areas might expect to find themselves expecting to pay more than customers located in urban areas, although this is ultimately dictated by the proximity to the distribution depot, with delivery costs correlating with distance travelled.