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Why is home heating oil more expensive than gasoline?

The Govenor 2013/01/07 14:28:12
Related Topics: Oil, Home, Heating
I've often wondered how this can be? It goes against everything related
to manufacturing costs and distribution costs. Home heating fuel is a less refined product and the end use is taken in much larger quantities. Why is it more expensive?
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  • Bronco 2013/01/07 15:35:29
    Bronco
    +3
    Because they are two different forms of oil, first off. Second of all, less people are driving in the world but the demand for home heating fuel has more than doubled.

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  • John "By God" American 2013/01/17 20:26:27
    John "By God" American
    +1
    Because it's called price gouging. People need to stay warm and they'll pay...
  • Deere Guy ~POTL~PWCM~JL~PWC... 2013/01/07 15:39:32
    Deere Guy ~POTL~PWCM~JL~PWCM~JLA
    +1
    Because of the demand in winter......and because they can get it......just like diesel fuel.....while the cost of gas dropped considerably, diesel fuel and home heating fuel dropped very little.....if any......trains use it......truckers use it.......construction uses it.......they hide the excuse under the "Low Sulfur" umbrella, yet offroad equipment is allowed to use high sulfur diesel....not sure about locomotives......yet diesel and heating fuels are cheaper to produce......its all about supply and demand and speculators.......also our 16 trillion dollar deficit..........everytime we put the printing presses to work and borrow money from China, it devalues the dollar then causes the cost of petroleum to go up on the global market.....when petroleum goes up it affects every living thing we consume......when are our politicians and half the country gonna see that?.........
  • The Gov... Deere G... 2013/01/07 15:43:59
    The Govenor
    The "cause and effect" theory along with a little let's screw the consumer. I can buy that.
  • Bronco 2013/01/07 15:35:29
    Bronco
    +3
    Because they are two different forms of oil, first off. Second of all, less people are driving in the world but the demand for home heating fuel has more than doubled.
  • The Gov... Bronco 2013/01/07 15:39:20
    The Govenor
    +2
    Do you have anything to back that up? They seem be be selling an awful lot of cars and many people I know have converted to natural gas/lp or are burning wood.
  • Charu ∞ijm♥∞ 2013/01/07 15:31:33
    Charu ∞ijm♥∞
    +2
    idk.....maybe supply and demand
  • The Gov... Charu ∞... 2013/01/07 15:40:34
    The Govenor
    I don't have an stats but I would think the demand has decreased as I know many people who either burn wood or have converted to gas over the last few years.
  • Tic-Toc 2013/01/07 15:27:34
    Tic-Toc
    +3
    I can walk to work, But I cannot Keep my Kids warm without oil
  • The Gov... Tic-Toc 2013/01/07 15:28:40
    The Govenor
    +2
    So in other words, they know they got ya so they stick it up your ass?
  • Deere G... The Gov... 2013/01/07 15:40:26
    Deere Guy ~POTL~PWCM~JL~PWCM~JLA
    +2
    You got it........
  • cutter'... Tic-Toc 2013/01/07 15:40:42
  • The Gov... cutter'... 2013/01/07 15:48:00
    The Govenor
    +2
    They (the EPA) are out of control.
  • cutter'... The Gov... 2013/01/07 15:52:53
  • The Gov... cutter'... 2013/01/07 16:40:25
    The Govenor
    +1
    No Cutter, they didn't outlaw "wonderin' " or dreamin', yet. But you can rest assure, they're workin' on it.
  • Jiorgia 2013/01/07 14:39:56
    Jiorgia
    +1
    Because it can be,
    Because you need it less often,
    Because they have to take it to you,
    Because there isn't a competitive market...

    Shall I go on?
  • The Gov... Jiorgia 2013/01/07 15:02:27
    The Govenor
    +1
    They must have you fooled.
  • Jiorgia The Gov... 2013/01/07 15:03:59
    Jiorgia
    +1
    Nope, I don't even buy home heating oil, I don't even live in a country where it exists...

    We are heated by air in this country.
  • The Gov... Jiorgia 2013/01/07 15:08:34
    The Govenor
    +1
    So would it be safe to say you are not knowledgeable about this subject, at least from any personal experience.
  • Jiorgia The Gov... 2013/01/07 15:11:42
    Jiorgia
    I am knowledgable about market prices and why they are set at certain levels... seeing as my sister is in marketing herself.
  • The Gov... Jiorgia 2013/01/07 15:21:32
    The Govenor
    +1
    Well, no offense, but your reasons defy logic. There is a competitive market here in the U.S. and it cost less to distribute.
  • Jiorgia The Gov... 2013/01/07 16:01:12
    Jiorgia
    Is the market as competitive as the petrol market, is there a house oil watch set up by the government?

    It is more expensive because it can be.
  • john ri... Jiorgia 2013/01/07 15:34:12
    john richardson
    +3
    I know we have a market on the east coast but as a commodity I rank it up there with whale oil. (it's that important LOL.)
  • Jiorgia john ri... 2013/01/07 16:04:15
    Jiorgia
    +1
    Yeah, our main priority is cooling our houses in summer.

    We either have split system ducted heating/cooling or an air conditioner and a pot belly stove or fireplace.
  • The Govenor 2013/01/07 14:33:01
    The Govenor
    +1
    I have inquired about this before but have never been able to get a straight answer.
  • MARK The Gov... 2014/02/09 01:57:22
    MARK
    +1
    I'm with you Gov.

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