What Impacts Fuel Prices for Consumers?

Fuel prices fluctuate every year – sometimes drastically, sometimes in minuscule moves. It’s hard to predict the market to determine how to protect against price swings. We offer price protection programs to alleviate risk, but we also want to share what impacts fuel prices. Locally we have little control over what is happening to pricing in the global heating oil market, but it is important to have information about why price swings occur.

Geopolitical – World events – political unrest, bombings, Brexit, Wall Street, national elections, etc. cause fear, uncertainty and market swings.

Supply and Demand – Whether it is real or speculation, if there is an oversupply of fuel and a lack of demand prices will go down. Whereas if there is an under supplied market and high demand, prices will increase.

False, Skewed or Unrealistic Reporting – OPEC or large oil producing countries often supply inaccurate reports of available fuel supply to drive the market up or down. Similarly company or even government reports over-state production capacity or inventory levels, creating swings in the market from traders and speculation.

Supply Disruptions – Refinery issues, wildfires or other natural disasters, can disrupt supply. Prices may increase due to decreased supply or increased transportation logistic costs.

If there’s one thing that runs through your mind each spring… it’s probably this question: “Do I really need an air conditioner tune-up EVERY year?”

The answer to that question is entirely up to you, but here’s our two cents that might help you make your decision!

Top Reasons for an Air Conditioner Tune-Up!

1. Improve indoor air quality

   The air from the HVAC system runs all throughout your vents and into your home. If you have mold or dust allergies or sensitivities, it’s just best to keep these things clean! Keeping a clean filter is a big help, and anything that gets through the filter could settle on coils and get yucky. Combine dirty and humidity, and you’re looking at a great spot for gross things to grow!

2. Increase efficiency:

   Cooling costs can account for A LOT of your energy bills over the summer.  This one is common sense – the cleaner your unit, the more efficient it will run, the lower your energy bill is going to be! Depending on how dirty your unit is, people see anywhere from 10% – 60% improvement in efficiency!

3. Lengthen the life of your unit

   When you spend $10,000 on something, you’re sort of hoping it lasts a while, right? Seems obvious, but… do you get oil changes on your car? It’s sort of common sense, but when you take care of something, it lasts longer.  If you don’t take care of your unit, to save yourself $200 per year, you’ll end up dishing out $10,000 for a new unit 5 to 10 years earlier than you would have otherwise!

4. Protect your investment

   Oftentimes warranties will require annual maintenance and care to be performed to maintain the warranty on the unit.  Not to mention, what’s the point of buying a high efficiency unit, if you’re not going to have it running at high efficiency!

5. Regular maintenance usually costs less than repairs

   It of course varies based on the situation, but studies show that almost 2/3 of emergency maintenance repairs could have been avoided by regular system maintenance.  And unless you have a service policy that covers emergency repairs (in which case it also covers your annual maintenance!), then you’re going to be paying a GOOD chunk of change for emergency repairs.  Especially on a 95 degree day!  You’ll be paying both with dollars and cents & sweat and tears!!

We just wanted to take the time to let you know that you’ve saved money this year being a full service heating oil customer!

Now, it’s likely you’ve heard other oil users talk about using discount heating oil companies, and how they get “the best price per gallon, it’s just so much cheaper than these big companies!”  Well, that’s not to say that there aren’t savings to be had, but those savings come at a cost, and sometimes, there’s no savings anyway – just the risk!

This week, for example, the “call in” heating oil price (for customers who aren’t full service customers and who take oil whenever they call in, at whatever price it’s available) – are paying the same heating oil price as CAP program customers, but without the perks.  Cap program customers have the opportunity to pay on budgets, be covered by service policies, and have their deliveries managed for them by us!  Not to mention the tank insurance, the 24/7 emergency technicians on call, and so much more.  Discount heating oil shoppers spend all day looking for the best oil price to be found, paying for the full delivery up front, having to track their own deliveries, and whenever anything goes wrong – they pay higher prices for repairs.  Taking on all of this extra work themselves, they’re hoping to save a few dimes on the price of the oil.  But unfortunately, oil prices can be unpredictable, and at the end of the day, they can end up paying the same (or sometimes more) than our full service customers who get all the full service perks!

Heating oil prices are unpredictable.  Can the discount heating oil companies sometimes save you a few cents a gallon on heating oil?  Absolutely – depending on the day, the weather, the political climate, the supply, and a whole slew of other factors.  And sometimes we think it’s important just to congratulate you on YOUR savings.  It seems like no one ever congratulates YOU on saving a bit of money by choosing the all inclusive and safest plan when the heating oil prices go high.  So we just wanted to take the opportunity to say – great choice – you saved money this year – and we’re glad we could help you do it!

The CAP program has proven beneficial again this year!   As oil prices have risen above the CAP price, our customers never pay the higher price.  But if the price falls below the CAP price, they pay the lower price.  It’s a great peace of mind, and we just wanted to let you know that this year, you made the right call!  It’s paid off to be a CAP member, once again!

Call us if you’re interested in enrolling in our CAP program for next year!  And as always, thanks for being a member of our Medford Heating and Air Conditioning family!  We’re here for you, for all of your full service heating oil needs!