Why does the heating oil price around Bangor fluctuate as much as 95 cents per gallon between dealers?

For many households in Maine, heating oil is necessary during the winter months. However, the price of heating oil can fluctuate greatly, leaving consumers wondering what factors influence these changes.

Colby & Gale heating oil truck in Maine.Photo bythe author PowerPoint design creation

In this article, we will explore what determines the price of local heating oil and what consumers can do to navigate these fluctuations. We will also divulge who has the cheapest heating oil price around Bangor and who has the highest.

Market Demand and Supply

The demand and supply of heating oil is a significant factors influencing its price. In the winter, the demand for heating oil increases, which puts pressure on the supply. The supply of heating oil is affected by various factors such as production, shipping, and storage. Any disruption in these processes can result in a shortage, leading to a rise in price. On the other hand, if there is an excess supply of heating oil, then the price will decrease. Therefore, the forces of demand and supply are crucial determinants of heating oil prices.

Global Oil Prices

Another crucial factor determining local heating oil prices is the global price of crude oil. The price of crude oil is a significant determinant of heating oil prices since heating oil is a byproduct of crude oil. When crude oil prices rise, it directly impacts the cost of heating oil. Global crude oil prices are determined by various factors, including geopolitical events, Organization of the Petroleum Exporting Countries (OPEC) production quotas, and supply and demand dynamics.

Regional and Local Taxes

State and local taxes also impact heating oil prices. Every state has its tax structure, and these taxes are often included in the price of heating oil. Therefore, depending on the state, the price of heating oil may vary significantly.

Sales of heating oil for heating and cooking in buildings designed and used for both human habitation and sleeping are exempt.—Maine Revenue Services.

The taxes levied on heating oil often vary depending on the usage of heating oil in that area. Some states may have higher taxes on heating oil if it is the primary source of heat in the region.

Energy Efficiency Measures

Another factor affecting how much each home pays for heating oil over the winter is household energy efficiency measures. Using energy-efficient heating systems, such as heat pumps or solar heating, can significantly reduce the demand for heating oil. These measures, in turn, reduce the demand for heating oil, which can drive down the price. Regularly maintaining heating systems can also improve their efficiency and lower annual heating costs. Other factors include insulation and weatherstripping.

Who has the cheapest heating oil price per gallon around Bangor?

According to Maineoil.com, CN Brown Energy in Brewer has the cheapest local price around Bangor at $3.499 per gallon. Several others are very close to that price, like Morin Fuel in Bradley at $3.549, Pushaw Energy in Milford, Fields Oil & Propane in Bangor and Brewer, Hopkins Energy in Hermon, and Pine Tree Oil in Hampden at $3.599.

ABC Fuels in Bangor and Newport is the most expensive local heating oil at $4.449 per gallon. Of course, as mentioned above, several variables affect the price, but it doesn’t make sense to have a difference of 95 cents between the cheapest and the most expensive.

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About the author

Stephen Dalton is a native of Old Town, ME, and a retired US Army First Sergeant with a degree in journalism from the University of Maryland. He is a Certified US English Chicago Manual of Style Editor. Top Writer in Travel, Food, Fiction, Transportation, VR, NFL, Design, Creativity, Short Story, and a NewsBreak Community Voice Pro.