The heating oil price is tied to the development of the price of crude oil and therefore also depends on the low supply and high demand for crude oil in the emerging markets. The price of heating oil is recalculated daily. Because the heating oil price is calculated as an average price of a country, there can be regional price differences for heating oil for consumers.
Because the price of heating oil is tied to the world’s most important commodity, crude oil, emerging industrial markets such as China, India and Latin America indirectly take influence on the price of heating oil since they require more and more oil to support their economic growth and the resulting rise in energy consumption. However, the supply of crude oil is limited and cannot be increased endlessly, since in recent years it has become increasingly difficult to find and develop new oil reserves. As a result, the price of oil has a strong influence on international economic development since it is urgently needed in all industrialized countries, especially when supplies are limited. This also makes purchasing heating oil and filling up increasingly expensive for average consumers.
Although the price of heating oil is determined as a national average price, there are strong regional price variations for consumers when purchasing heating oil. These change constantly and can deviate considerably from the average value. When purchasing heating oil, the price is also influenced by the delivery quantity ordered since discounts are often granted when large volumes of heating oil are purchased. In case of bulk orders, the number of unloading points also influences the price. This is why observing the current heating oil prices for the respective region is important when purchasing heating oil. To obtain the relevant heating oil price special calculators can be used, which calculate the price of heating oil depending on the postcode, the approximate quantity required and the number of unloading points.
There are several different types of heating oil, each with different properties and prices. The most popular heating oil in Germany is “Heizöl Extra Leichtflüssig”, abbreviated to HEL. The price of this type is determined on the Rotterdam Market in US dollars for the quantity of one tonne. Industrial fuel is known in Rotterdam as Industrial Gas Oil and abbreviated to IGO. The end consumer also incurs transport costs since the heating oil trade needs to cover its costs and also make a profit. Taxes and duties are also charged on top of the price of heating oil for private use.