Biodiesel Helps Keep Heating Oil Prices Down

John Davis

noraGood news going into the fall and winter chill: heating oil prices are expected to stay lower throughout the winter. And part of the reason for that is biodiesel. The National Oilheat Research Alliance says increases in production and the addition of biodiesel into the supply chain is helping keep the price of home heating oil down to levels not seen in years.

Prices have dropped across the entire heating oil marketing footprint. Heating oil closed on the NYMEX this past Friday, October 2 approximately 15% lower than the same time last year and almost half the price at the close of October 4, 2013-just two years ago.

According to the New York State Energy Research and Development Authority (NYSERDA), heating oil prices state-wide on September 14, 2015 are lower by $1.20 per gallon than the same time last year, a 31.9% reduction. New York is the largest heating oil consuming state.

John Huber, President of the National Oilheat Research Alliance, stated:
“It is a really exciting time for oil heating customers. Prices are low and the oilheating industry is transitioning to a superior fuel product. By adding biodiesl, a renewable, carbon neutral fuel to low-sulfur heating oil, heating oil retailers are actually delivering a better product at a significantly lower price. What could be better?”

NORA says homeowner’s savings could approach $1,000 for the year.

Biodiesel, Bioheat