Heating Oil

Although heating oil use has been declining as new homes are built with natural gas, propane or electric heat, it is estimated that about 6 million homes and many businesses still use heating oil as the primary source of heat.  As of January 1, 2017, it is estimated that those 6 million homes and businesses consumed about 3.5 billion gallons of heating oil, most of which is in the Northeastern United States. Because a substantial number of homes and businesses still rely upon heating oil for heat and/or hot water, we offer an array of heating oil delivery options throughout the Northeastern United States, Pacific Northwest and anywhere heating oil is consumed.

Heating oil delivery options

Heating oil is delivered from a tank truck, also sometimes referred to as a bobtail truck, which contains a cargo tank that may contain up to 4 compartments and most of which hold between 2800 gallons and 4500 gallons of heating oil.  Heating oil is delivered through mechanical or electronic meters that are required to be certified by state departments of weights and measures.  You have several options when it comes to deliveries.

First, many consumers elect to be placed on an automatic delivery basis by their heating oil companies. Heating oil companies calculate when their customers are due for delivery by using a degree day and k-factor system. Your heating oil supplier can determine when you’re due for delivery by tracking how many gallons of heating oil you burn per degree day.  A degree day is a measure of temperature. When your heating oil company fills your fuel oil tank a couple times, they are able to calculate the number of gallons consumed between each delivery and also your rate of heating oil consumption per degree day.  By tracking the number of degree days have elapsed and taking into account your fuel oil tank and a reasonable (say 25%) reserve to prevent run-outs, your heating oil company knows when to make a delivery for you.    Automatic delivery is typically preferable to will-call deliveries because when you’re on automatic delivery (or keep full service as it’s called by some companies, your fuel company is responsible for making sure your tank always has an ample supply of heating oil. If you run out of fuel because of their miscalculation (though not because of a past due balance), they will deliver 24 hours a day 7, days a week at least in the Winter months.

It is important to note that if you don’t permit your heating oil company to fill the tank each time they deliver fuel oil to you, then it is impossible for them to accurately calculate a k-factor and thus they cannot place you on automatic delivery.  Of course, you may not be able to afford to fill the tank each time, or you may simply want to control when you order and receive fuel oil so as not to receive a delivery late in the season if you don’t need it, or for some other personal reason.  That of course is up to you.  Should you choose to receive deliveries on what’s known as a will-call basis, you will have the option to order fuel in 50 gallon, 100 gallon, 150 gallon or other increments that suit your needs.  Many companies charge more on a per gallon basis for smaller deliveries.   We can arrange heating oil deliveries for you either on an automatic delivery basis or on a will-call basis, and we guarantee the lowest available rate on date of delivery.  If you need heating oil, please contact us for more information.

The payment options for heating oil deliveries.

Heating oil suppliers typically offer several different options.

First, if you have good credit and you’re on automatic deliveries, you may be able to get your heating oil company to extend you credit terms of 10 days or maybe even 30 days.  You should know that your heating oil company must pay their suppliers in 10 days for heating oil purchases, and thus, most heating oil dealers are reluctant to offer more than 10 day terms to their customers.

Second, many heating oil customers choose to pay their heating oil bills via credit card, which effectively enables them to get 30 day terms from the credit card company.  Additionally, using a credit card to pay your heating oil bills helps you to earn valuable rewards from credit card reward programs.

Third, most heating oil providers off budget payment plans or level payment plans.  With a budget plan, your heating oil company estimates your annual fuel expenditures taking into account the expected average annual consumption and accounting for the potential that fuel prices will increase.  Your heating oil company then divides this amount by 10, 11 or 12 monthly budget payments, which usually start in the Summer, enabling you to build up a credit during the warmer months to offset your Winter usage.  At the end of the season, or earlier if your consumption is way to high, your heating oil company will reconcile your account and either you will owe an amount for the excess spent over your budget payments or you will have a credit on your account which can be refunded to you or applied toward your next year’s budget in order to reduce your payments.

Lastly, if you are looking for the lowest possible price for heating oil, you may opt to purchase heating oil from a discount heating oil supplier on a COD basis. By purchasing discount heating oil, it’s important to note that you’re probably buying the same high quality fuel that you’d be getting from a full-service company.  All fuel suppliers buy their heating oil from major refiners or terminal operators. Full service fuel oil companies, which typically charge at least $.20 – $.30 per gallon more than discount heating oil companies, do so because they provide automatic delivery and credit terms and because they offer service contracts to their automatic delivery customers.  Although you would pay for a service contract, many heating oil companies lose money on service and subsidize those losses with higher fuel prices.  Therefore, if you’re handy, or you have access to an HVAC company with experience in heating oil burner, boiler and furnace repairs, you may be better off with a discount COD heating oil company where you can save a lot of money.

Regardless of whether you want full service of discount COD heating oil, we can help.  Please contact us for more information about our heating oil delivery services.