At JW Pierson Co., we’ve been delivering heating oil to homes and businesses in northern New Jersey for over a century. Like any commodity, heating oil’s price fluctuates throughout the year. We’ve served oil-heated households during periods of low prices and through periods when fuel prices have spiked. Through it all, our primary goal was to get our customers the best price possible on high-quality heating oil.
In this article, we want to discuss what variables influence the per-gallon price of heating oil and how JW Pierson can help stabilize your fuel costs. Let’s start by exploring the factors that impact fuel costs.
When it’s cold outside, prices for heating oil tend to be higher. Additionally, over 80% of U.S. heating oil consumption is concentrated in the Northeast. That means that an extreme cold spell or a winter storm in our part of the country can cause prices to rise all over the U.S.
Traditional heating oil comes from crude oil. As a result, the price of the fuel you use in your boiler or furnace is impacted by international events affecting the global oil markets. In recent years, we have seen these kinds of events cause prices to spike:
While the heating oil that Pierson delivers is composed of petroleum heating oil, it also incorporates U.S.-made biofuel. This eco-friendly fuel is produced using organic and recycled ingredients, including used cooking oil, woody biomass and plant oils. Not only is this better for the planet, but it also limits our reliance on foreign oil.
Finally, the price of heating oil is affected by the costs of transporting, storing, and delivering it. While Pierson can’t reduce all these costs, we do what we can to keep those we can control low — then pass the savings on to you!
We’ll be candid: there isn’t much we can do to affect the global or even the regional factors influencing heating oil costs. And we don’t make more money when prices are high. It’s like when the price of coffee or milk goes up, your local grocery sees no extra profit. We all want prices to stay low.
At JW Pierson, we offer our customers ways to stabilize their billing and sometimes even save money on their fuel.
With our E-Z Pay budget plan, you never need to pay in full when your fuel is delivered. Instead, we calculate your estimated annual heating oil costs and then spread those out over even monthly installments throughout the year. You won’t end up paying more for fuel because we can adjust your installments. The cost of the fuel on the day it was delivered ends up higher or lower than anticipated. But your winter bills will be cut virtually in half. There’s no cost to enroll in E-Z Pay. In fact, we’ll give you a discount for having a budget plan!
We also offer a price cap plan, which limits how high your per-gallon rate can go — but not how low. For a small fee, we’ll set an agreed-upon cap for your heating oil. If the market price drops below that cap, you pay the lower rate.
Are you interested in discussing these pricing and payment plans in more detail? Contact JW Pierson today, and we’ll help you protect your price on heating oil.