Like any other product, oil is subject to the basic laws of supply and demand. When demand is high and there isnt enough to go around, the cost goes up. Most recently, the tragic events surrounding hurricane Katrina pointed up how suddenly the supply can be disrupted.
Consider this by way of example. A few years ago, some of you may recall that sugar prices went through the roof. It was so bad that many fast food locations stopped giving away sugar unless someone asked for it. People began hoarding sugar, causing local grocers to order more and more as they tried to keep up with demand. Then, just as suddenly, prices fell. Many grocers who only weeks before had been desperately trying to keep their customers happy, were now left, literally, holding the bag. They lost a lot of money.
It is unlikely that oil prices will suddenly be dropping as sugar did, but only those who are in a position to control the supply and can sit on it for an extended period of time are in a position to profit. That certainly is not a local dealer. Local dealers must pay for the oil they resell and have significant risk in estimating both how much to buy at a given price and what the selling price will be down the road.
No one likes price increases. But by working together with your local dealer, you may be able to explore some options. As soon as gas prices rise, some people start shopping for a smaller car, even though sometimes the difference in fuel costs may never really be realized over the life of the car. On the other hand, many people dont realize that a more modern, fuel-efficient furnace could offer significant fuel savings during its much longer average life.
This is just one example of how partnering with the local dealer you have trusted for many years can help you get the most out of every fuel dollar. Call or stop by your dealer today and discuss how you can work together to make the best of this unfortunate situation.
Unfortunately, a few people have the mistaken impression that local fuel oil dealers are profiteering from the high cost of oil. That is simply not the case.
As someone who lives and works in your community, a local dealer would be foolish do this. Any short-term gain would quickly be erased by loss of long-term business as other dealers offer better prices. The fact is that high prices affect everyone, dealers included.
