Factors That Determine Heating Oil Prices in Groton, CT

Heating oil is commonly used throughout different parts of the country, and in places such as Groton, CT. This type of oil is used in places where the municipal gas lines are not available yet, and people have to look for an alternative option in order to keep their furnaces lit. If you have ordered heating oil in the past, you will probably know that the heating oil prices tend to differ every time you order. There are a variety of factors that determine the prices of heating oil, so here are a few of the major ones.

Foreign Exchange Rates

Since the heating oil is generally exported from different parts of the world, foreign exchange rates play a very important role in determining the price of the oil. In case the exchange rates are higher between the dollar and other currencies, you will notice that the prices are automatically increased. That’s because the company has to pass the burden on to the consumer, primarily by increasing the heating oil prices in Groton, CT and in other areas.

Oil Prices

Oil is a commodity that is traded in the international markets, and Groton heating oil prices are generally determined based upon the price of oil in the international markets. Since oil is currently at a very low price point right now, the heating oil prices are low as well.

Profit Margins

Last but not the least, the company’s profit margins also determine how much the final price of the heating oil will be. If the company’s profit margins are higher, they will ultimately charge a higher fee from their customers. You can check out here the prices on the company’s website before placing the order.