What Affects Heating Oil Prices in New Jersey?

Global and local factors that affect fuel prices.

We all feel better knowing we’re getting the best price for the goods we buy. But in the last few years, that hasn’t been easy. Last year, U.S. inflation reached its highest rate in over 40 years. It affected just about everything, from bread to gasoline to rent.

At JW Pierson Co., we are committed to ensuring that our heating oil delivery customers receive premium fuel at a fair and transparent price. We never want you to overpay for the vital heating oil that keeps your family comfortable and safe in the winter.

Here are three factors that affect the price of heating oil in Essex, Passaic, Union and Bergen Counties.

1. Seasonal demand in the Northeast

Households in the Northeast consume about 90 percent of the heating oil used in this country, so the weather in our part of the U.S. significantly affects fuel prices. At Pierson, we always work hard to secure fuel before prices surge in the winter and pass those savings on to you. (Check out information about pre-buying heating oil below.)

2. Crude oil markets

Like gasoline, diesel and kerosene, heating oil is a distillate of crude oil, so heating oil prices track global crude markets. This means international market forces impact the per-gallon rate considerably. In recent years, heating oil has seen price fluctuations related to:

• decreased refinery production during the COVID-19 pandemic.
• Russian oil supplies being cut off because of the war in Ukraine.
• OPEC members choosing to slash production.

Of course, there’s also a fair amount of market speculation involved, as gamblers on Wall Street look to profit when prices surge. They may see bigger profits when oil prices rise, but local companies like JW Pierson don’t. We prefer low heating oil rates just as much as you do.

3. Regional operating costs

Just as with other commodities — from food to furniture to automobiles — heating oil’s price is affected by standard expenses associated with labor, transportation and storage. These expenses can go up when, for example, production drops, and we need to pay more to get fuel from farther-flung suppliers. But we do our best to keep these costs low.

JW Pierson Co. saves you money on heating oil!

We believe that the households we serve should have confidence in their energy budget. That means offering plans to stabilize your heating oil prices and potentially save you considerable money throughout the winter.

Here are the pricing programs we offer:

• E-Z Pay — This no-fee monthly budget allows you to spread your heating oil expenses throughout the year. You’ll pay the same amount each month, your winter bills will be cut in half, and we’ll even give you a per-gallon discount for enrolling!
• Price cap — For a small per-gallon fee, we’ll set a cap on how high your heating oil rate can go. But if the market rate drops below the “cap,” you can pay the lower price.
• Pre-purchase fixed price plan — You can pre-pay for an agreed-upon number of gallons before the heating season begins (and before prices go up). Your price will be locked in, and we’ll deliver your pre-purchased fuel as needed.

If you’re interested in any of these pricing plans, reach out to us today.