Prices for heating oil in Branford fluctuate more than the price of natural gas, which is understandably annoying to people with oil furnaces when the cost goes up. But heating oil prices are directly tied to the cost of diesel fuel and not to natural gas. That’s because heating oil is nearly the same substance as diesel, only without the red dye added.
Diesel Prices
Diesel is always more expensive because road tax is included. To a certain extent, this disguises its connection to the cost of heating oil in Branford. The red dye is added, so nobody tries to use heating oil to fuel their vehicles. That would work, but it’s illegal since heating oil isn’t taxed this way. People also can use diesel to run their furnaces in a pinch, but they won’t want to do so often because it’s pricey.
People who drive diesel-fueled vehicles actually have more to be disgruntled about than homeowners with oil furnaces do. The price of diesel goes up as the demand for heating oil increases, explaining why diesel is usually more expensive during the colder months of the year.
Harsh Winters
The situation is worsened during brutal winters when both types of fuel put a big dent in the budget. If not enough fuel is produced to easily supply heating needs as well as diesel for semi trucks, construction and farm vehicles, and passenger cars, prices can skyrocket. This can be a true hardship for people forced to spend $3 or $4 per gallon of oil to heat their homes.
Global Demand
In addition, global demand for diesel must also be considered. Europe, China, and India all use large amounts of the fuel, which is one of the products derived from crude oil.
Local Suppliers
Suppliers such as East River Energy have no control over those market forces of supply and demand. They deliver heating oil to customers on a contract basis or by individual order, doing whatever they can to make sure they have access to enough fuel for all their customers. Visit the website Website Domain to find out more about this particular company.