This price is not a fixed number but a fluctuating figure influenced by global events, local supply chains, and the specific grade of fuel delivered to your property. Budget Plan Rate Fixed monthly payment averaged over the heating season.
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Potential for underpayment leading to catch-up bills; minimal interest on pre-paid plans. Highly volatile; can lead to unexpected high bills.
Price Type Description Pros Cons Spot Market Price Current market rate for immediate delivery. The two most common grades are #1 and #2, with #2 being the standard for residential use due to its lower cost and adequate efficiency for most furnaces.
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Consequently, movements in the crude market ripple through the entire supply chain. When geopolitical tensions arise or supply chains face disruption, the base price per barrel increases, pushing the cost of heating oil upward regardless of local factors.
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