If you have recently purchased a home that requires oil-fueled heat, you may be wondering when the best time is to fill your oil tank. Many people opt to wait until the weather cools off before they start buying any oil for the season, but this could end up costing you more than you need to pay. In fact, the best time to start buying oil for your winter season is while the weather is still hot. Here's why the months you need it the least are the best months to buy your heating oil.
Supply And Demand
Remember that oil costs are, like any other consumer product, driven by supply and demand. When supply goes down, costs go up. During the winter months, the demand for oil is high, which reduces the available supply. The cost of heating oil often increases in the late fall heading into winter because of this.
When the demand is low and supply is plentiful, as it is in the summer, you can often pre-purchase oil at a greatly discounted rate. In fact, having your oil tank filled now may save you substantially come winter when the cost can go up as much as a dollar a gallon or more.
Seasonal Pre-Purchase Programs
Many heating oil suppliers recognize how difficult it can be for homeowners to afford heating oil in the winter months. That's why they often provide pre-purchase programs in the summer where you can sign a contract for a certain amount of fuel to be delivered to your home in the winter season.
In exchange, you either prepay the entire amount when you sign the contract, or you pay the contract price in installments starting now and continuing throughout the winter. The oil company has the guarantee of that income and you save money. It's a win-win scenario.
Sudden Weather Shifts
You might think that it's best to at least wait until the summer temperatures cool into fall. However, you may find yourself in a predicament if you do that. Remember that the weather temperatures can shift drastically and quickly sometimes. If you wait, you could find yourself facing a sudden shock of bitter temperatures without the heating oil to fire up your furnace. In those situations, it can take your oil company a day or two to get to you for the delivery because of demand from other clients. Buying now eliminates this risk.
To learn more, contact a heating oil company.