Price & Budget Plans
On this page, we'll tell you why fuel prices are what they are ... and how you, as a Tower Energy customer, can better manage your energy costs.
The Energy Market 101Whether you refer to the fuel in your home's tank as Oilheat, fuel oil, or heating oil, one thing is true: its price fluctuates - not just over time, but also from place to place - the same as gasoline, milk or eggs.
Here are four reasons why heating oil prices fluctuate:
SeasonalityWhen crude oil prices are stable, Oilheat prices tend to gradually rise in the winter months when demand is highest. However, at times, prices can surge quickly to very high levels. A homeowner in the Northeast might use 850-1,200 gallons of heating oil during a typical winter, while consuming very little during the rest of the year.
DemandBecause crude oil is a major price component of heating oil, changes in the price of crude oil will generally affect the price of heating oil. Crude oil prices are determined by worldwide supply and demand. Demand can vary worldwide with the economy and with weather. Supply can be influenced by the Organization of the Petroleum Exporting Countries (OPEC) and other factors.
Local CompetitionCompetitive differences can be substantial between a locality with only one or a few suppliers or dealers versus an area with a large number of competitors. Consumers in remote or rural locations may face higher prices because there are fewer competitors.
Regional Operating CostsPrices also are impacted by higher costs of transporting the product to remote locations. In addition, the cost of doing business by dealers can vary substantially depending on the area of the country where the dealer is located. Costs of doing business include wages and salaries, benefits, equipment, lease/rent, insurance, overhead, and state and local fees.
What Causes a Surge in Heating Oil Prices?Home heating oil prices sometimes can change dramatically in a short period of time. A rapid change to colder weather can impact both supply and demand; people want more fuel at the same time that harbors and rivers are frozen or delivery systems are interrupted.
How much is your oil today?Click here for real-time Oilheat pricing and online ordering, as well as price protection and budget plan information.
In addition, during very cold periods, prices of other heating fuels (such as natural gas or kerosene) may increase even more than heating oil prices. In this case, some consumers may switch from using their normal heating fuel to using heating oil, further increasing the demand for heating oil.
One thing we can say with great certainty is that Tower Energy does not make more money when oil prices rise. We adjust our daily price of heating oil to account for changes in our costs, particularly the wholesale price of heating oil that we pay. Click here to check today's heating oil price.
Price ProtectionTower Energy offers three types of Price Plans to help you control the cost of heating your home. The plans are designed to help control the volatility that has embraced the energy markets over the past few years. These programs are available on a limited time basis, so don't hesitate and protect you and your family from runaway energy prices.
Price Cap PlanThis plan protects you and your family against runaway increases in heating oil prices, and allows you to buy oil at a lower rate should prices fall. By choosing the Tower Energy Cap Plan, you will know in advance the highest price you will pay for your heating oil. If market prices fall below the cap rate, you will always pay the lower price!
- This plan provides protection against dramatic increases or decreases in fuel cost.
- Sets a Ceiling for fuel prices while allowing you to benefit from falling prices.
- This plan covers a fixed quantity of gallons, and is based on estimated annual fuel usage.
- Allows two payment options, Pay as You Go or Convenient Monthly Payments.
- Provides for convenient Automatic Deliveries so you do not have to monitor your oil tank.
Energy Saver Easy Pay PlanThis plan is a great way to budget your energy costs. This plan will allow you to purchase your annual supply of heating oil at our low market rate while spreading the cost of your annual fuel consumption over convenient monthly payments. No more large heating oil bills! Couple this with Tower Energy's Basic Service Agreement and have your heating system tuned to its highest efficiency, saving you money on your heating bill. In addition, if you elect to add a Basic Service Agreement to your contract, you will have 24 hour, 7 day a week priority service, with no overtime charges.
- This plan covers a fixed quantity of gallons and is based on estimated annual fuel consumption.
- Provides for even convenient monthly payments.
- Allows for convenient automatic delivery so you do not have to monitor your fuel level.
- Add Tower Energy's Basic Service Agreement and you have priority service for your heating system 24/7 with no overtime charges.
Fixed Price/Pre-Buy PlanThis plan will allow you to purchase your annual supply of heating oil at an attractive fixed rate while maintaining the convenience of automatic delivery. This plan is also available with downside protection.
- This plan covers a fixed quantity of gallons, and is based on estimated annual fuel consumption.
- What is downside protection? Downside protection allows you the ability to enjoy a lower price per gallon should the price fall below you contracted price.