Our low price isn't just a one-time deal!
August begins with Green Energy Consumers daily heating oil prices running about 20-25 cents less than this time last year. Compare that to the states' retail surveys, which are only about 10-15 cents cheaper today than they were last year. The trade US-China trade tensions have infected energy markets and oil prices have plunged to levels not seen since February 2018. Our August 8th price is the lowest daily price since early February 2018.
Typically our price differential is lowest during the summer months due to long-established pricing patterns used by heating oil dealers. Even the highest margin dealers tend to keep their prices low compared to the wholesale cost this time of year (when only 1% of all heating oil is delivered, by the way). They do this to try to keep any of their customers who might shop around before signing another year's service contract. So far this summer our difference has hovered around 30 cents with a tendency more toward 40 cents than 20 cents less than the average survey prices.
While some dealers play the narrow-margin-high-volume approach to their business, most dealers tend to increase their margins as consumers shop less and rely on the choices made during the summer, when they thought they had the dealer with the best price. Our program is often somewhere above the lowest price dealers except during the coldest winter months, when many of the lowest cost dealers are unable to keep up with demand. Meanwhile, our members are getting discounted oil from dependable dealers that are dedicated to serving all their customers all year round.
Now is a good time to arrange for a tune-up as dealers often have technicians they need to keep active. If you haven't had a tune-up and had 5 or more deliveries since your last one, it is time to get it done. While the long-standing recommendation has always been to get an annual tune-up, the low sulfur and increasing bio-diesel percentages in all heating oil make for less soot and gunk to be cleaned. So we figure once you've used 800 gallons or so it is a good time to get your system cleaned.
How do our prices compare?
Massachusetts' latest monthly price survey of full-service dealers, on Friday, August 9, documented an average price per gallon of $2.97, with a high price of $4.60 and a low of $2.19. The average prompt-pay price for our members in Massachusetts that day was $2.44, for savings of 53 cents !! per gallon on average. The last year Green Energy Consumer members saw savings this significant during the summer was in 2008 when the Recession was wracking commodity futures markets and prices were falling from over $4.00 per gallon in July to $1.40 by February of 2009.
Rhode Island's latest weekly survey price, on Monday, August 12, was $2.77, with a high price of $3.93 and a low of $2.14 The average prompt-pay price for our members in Rhode Island that day was $2.34, for savings of 43 cents per gallon.
And in New Hampshire, the survey for Tuesday, July 2, was $2.86, while our average prompt-pay price there was $2.54, for a savings of 32 cents per gallon.