For homeowners using heating oil to heat their homes, timing your purchase can really pay off when it comes to your budget.
Heating oil prices vary throughout the year based on a number of factors, including seasonal demand, global oil market conditions, and weather.
Understanding these trends and when to buy can help you save money and avoid the worry of overpaying in peak seasons.
So, when should you buy heating oil? Let’s dig into some insights.
Seasonal Price Trends: The Basics
Seasonal heating oil prices are predominately supply and demand driven. In the winter months—typically late autumn through to early spring, homes use significantly more heating oil and demand rises.
During this season, often referred to as the “heating season,” between October and March in most parts of the country, prices will usually rise as households consume more heating oil, with colder temperatures expected.
Conversely, the warmer months of late spring through to early autumn see a drop in demand.
With fewer households using their heating, suppliers typically lower prices to encourage sales.
This rise and fall establishes a predictable cycle: prices are (typically) higher in winter and lower in summer.
But the “best” time to buy isn’t necessarily about tracking the lowest price — it’s about achieving a balance between cost, convenience, and preparedness.
Summer: The Sweet Spot for Savings
Historical data and industry opinion would point to summer — June, July, and August — as the optimum time to buy heating oil.
Demand is at its lowest level during these months. Prices fall, creating a window of opportunity for homeowners to secure a good rate.
Buying in the summer also provides you with the option to fill your tank ahead of the peak heating season when delivery windows become longer and prices begin to creep up.
Early Autumn: A Strategic Option
If summer comes and goes, early autumn — September through to early October—is still a good strategic time to buy.
Prices may start to creep higher as winter sets in, but they’re not typically at their winter peak yet.
It also keeps your tank full before the cold weather and keeps you from having emergency deliveries at higher prices.
Winter: The Busy Season
Buying heating oil in the dead of winter is usually the most expensive option.
Demand peaks, and unexpected cold snaps can drive prices even higher. If a harsh winter is forecasted, suppliers can struggle to keep up, further tightening supply and increasing costs.
Unless you’re out of oil and have no choice, waiting until winter is rarely cost-effective.
Other Factors to Consider
Aside from seasonality, keep an eye on broader market trends. Worldwide crude prices, geopolitical events, and even local competition between suppliers can drive heating oil prices.
Tracking price forecasts or subscribing to our mailing list to tracking local prices can give you an edge. Moreover, consider your storage space—buying in bulk during a downturn might save more when you have space.
Final Thoughts
Although summer tends to be the cheapest time to buy heating oil, the “best” would actually be up to you.
If you’re all about saving, June or July would be the way to go. Whatever you choose, plan ahead—tracking prices and beating the winter rush can keep your house warm and wallet happy.
