How Does Oil Heating Work? How Do I Do Comparison Shopping?

Oil companies can be rather persnickety. Once you chose an oil company, you need to stay with it for a few years before changing again if needed. I find you're best to pick a "full service" oil company, so that you can have the oil burner/burners maintained properly and fixed when needed. You do need to shop around first to find the cheapest price. Here, it seems like it's always the same one with the cheapest price which was the company the original owner of our house used. (I checked.)I have also found that reliability is a key too. Some companies aren't very reliable when delivering oil the day they say they will. One company offered prepaided oil contracts, then went out of business and declared bankrupsy to try and get out of paying back the people who did the prepay contract. You'll want to read any prepay contracts you might be temped to sign, because some of them will not lower the price of the oil when it goes down sticking you with the higher amount you prepaid. Ours used to adjust the contracts to the lower rate, but not any more. You can also have automatic delivery, which means they will automatically show up at your house to fill the tank every month. We don't do that. It's convenient, but is a money waster for us in the long run since we don't use much oil in the summer and wouldn't have the opportunity to purchase the oil when it's lower in price. The price of oil fluctuates from day to day. Some companies want you to be there the first day they fill the tank and will only accept cash until you become a regular customer. Depending on how new or well insulated your house is and how cold the winters are, you may want to invest in some down blankets and learn how to temporarily seal leaks for the winter in order to save money.

Just noticed someone suggested to only half fill the tank....You have to be careful when you do this, if you have an older tank. Older tanks have silt in the bottom from years of various oil grades. If you get too low, you get too close to the silt and wind up with it getting into your burner and messing things up. You're better off to have it filled, then refill it when it gets half empty. Same concept, only safer.

What county do you live in now? I have a friend who works for an oil company in Monroe, NY. (Orange County) Alot of people in the area, including my in laws, who live in Washingtonville use Carpenter and Smith. My friend delivers the oil. Not sure of their phone number though.

Hi D.,
You can either comparison shop every time you need to fill the oil tank or you can contract with a specific company, who will come at intervals they determine and fill you up. Some of them will let you lock into a price for the winter. The value of doing it even if you don't get a lock in price is that you can get a service contract with them to clean your oil burner and to service your equipment.
We use Petro Oil Company, we are in Southern Dutchess.

Some people just shop around for the cheapest oil when they
need it. I would not recommend that. If something happens to your oil burner, you really won't have anyone
to call that you have a history with. If the owners of the
house are happy with the oil company they have, I would
stick with that one. Then once you are settled you can
look around.
I deal with a local company in town. Price wise, they
are not the most expensive but not the cheapest. However,when something happens, they are there usually
within a 1/2 hour (unless big storm etc.).

Hopefully, the owner of the house has previous bills
so that you will have some idea of the cost involved
heating a house in the NE.

I had oil heating for 18 years. It is a hotter heat than gas. The tank has a whistle and generally, the truck fills it till the whistle stops. As a general rule, you pay to fill the tank and not just a certain number of gallons - at least in Rochester, NY. I suggest filling it at the half as the price to fill a 279 gallon tank runs round $460.00. (You'll see a gage on the tank indicating the level of oil left) You can get the tank to last 4-6 months if you keep your heat down (60 at night/65 when home and up) and make sure any drafts are stopped and your insulation is good.

KEY point: change your oil filter every year, change your air filter every year, and get your furnace and chimney cleaned every year. DON'T FAIL TO DO THIS!! The soot will back up your ducts and you'll have gray/black walls! I suggest changing them when you buy the house so you don't find out the hard way the previous owner didn't do it!

The oil will smell a tiny bit when you fill up, but the smell usually goes away in an hour or so. That's if the tank is in your cellar.

I used a small company. The previous owner used a large corporation - Griffith Oil I believe. Not sure where you're located so I'd suggest you get the current resident's company information, check with your city's information bureau for possible companies, and use the BBB to verify their trustworthiness and make an informed decision.

Good luck!

Oil heat is not a big change, but I didn't understand it when we moved last year. Basically I asked some people for recommendations - but I only got one. Then we just called around to about 6 companies or so. We wanted one where we didn't have to sign a contract. When we picked a company to use, they came and checked out the furnace then filled the tank. He comes regularly to fill it and if we need it before we call. You do pay by the gallon, so it does change every time. Most companies here have a payment plan. Our last fill was in March, I think. I expect that we'll fill it again soon and will do so regularly over the winter.

Fortunately, we found a company with an owner we really like. He actually found a leak the first time he came and we had to have pipes replaced by a plumber.

Good luck with your search!

Oh, and one other thing, you don't have to be home when they fill the tank - the pipe is outside. I was embarrassed by this the first time he came!

It is helpful to shop around, as with gasoline some companies are much higher for no reason. A lot of companies offer a discount or have a promotion for your first delivery. One thing to keep in mind though is that during certain times, the price can go up quite a bit. We normally get a 100 gallon delivery & try to keep an eye on it so we don't have to go much over that. Or if you were in need of an auto-fill plan they will do that too. Some of them have a 100 gal min though. I think you mentioned previously that you were moving to the Dover/Rockaway area, didn't you. If you'd like I can get you some names & numbers to send to you. Let me know.

Hi D.,

In my area, most oil companies wont deliver without a minimum "drop" of 150 gallons. They do charge by the gallon. The oil tank in the house I'm renting now holds 320 gallons, so I usually have them come out only about 3 times during the winter season and that is enough for us. My hot water heater is electric - as are my dryer and stove/oven, this helps on my oil bill.

I have a company that I call every year. I can call any one in the area if I like their prices better, but I have used the same one for over 10 years now. And I have moved around alot - in the same area, so I've had this company for about 6 different residences.

Depending on where you live, you may be able to find an oil company who will agree to a monthly agreement. I've had a 3 month agreement with my oil company for propane at a couple of residences - for gas stove and dryer, but never scheduled regular oil deliveries.

Look into the yellow pages of your local phone book under oil companies. Call each one, ask if they deliver in your area, how much they charge per gallon, do they carry propane - if you need it, and do they have monthly agreements for delivery or is there a minimum amount for delivery. Then you can decide for yourself which is best.

Have fun

Hi D.,

Welcome!! When you do start calling around for oil prices, you have to be aware that there are two kinds of oil companies. One is a full-service company that has a service department and can set up for budget plans, billing, automatic delivery(which means you do not have to call the oil company when you need oil, they will keep track and deliver when you need it) & sercice contracts for your furnace. They do charge a higher price for the oil but offer these extra services. The other kind of company is a C.O.D. oil company. This kind of company only delivers oil, has no service dept, requires payment at time of delivery and you need to call for every delivery (they will not automatically come out, you need to keep track of how low the tank is). These companies have a much lower price for oil but not any of the frills. You first need to decide which would work better for you. Is the furnace new or older? If it is older you will have to think if you want the extra protection of a service contract. If it is a newer unit, or your landlord can fix it, you may just want to go with the cheapest oil price.

I just noticed that you said you were responsible for "monthly service" per your lease. Did your landlord explain what that means? Do you have to have a service contract on the unit?

I work for an oil company and I would be happy to answer any questions you may have.

M.

Welcome to our area!

You should contact a couple of oil companies and see what they offer. You do pay by the gallon, but companies will often allow you to lock in a price over the course of the heating season. It protects you from increasing costs, but can also cause you to pay more if the price of oil drops. Talk to some of your new neighbors (if you can) and see who they recommend. Compare prices and services, and ask questions about anything you do not understand.

Your landlord is probably making you get a monthly service to make sure you don't run out of oil. They will come on a regular basis (monthly or more often, depending on how cold it is) to refill the oil tank. That should be specified in your agreement. That way (hopefully) you won't run out of oil. You should keep an eye on the gauge, and if you think you'll run out before your next delivery, call them. If you run out of oil (ie, tank runs dry) they usually have to make a service call to reprime and restart the furnace (just refilling the tank does not make the furnace go on).

Ask your landlord how much oil is usually used every winter. It depends on how cold it is. Hopefully we'll have a relatively mild winter. And ask him to show you how to restart the furnace in the event it does go off. That way you don't have to pay for a service call.

Oil isn't really much harder than gas. I've had both. Just make sure you keep an eye on the oil tank gauge. Good luck.

I worked in the oil industry for over 10 years... In answer to your questions: 1) Yes, you buy oil by the gallon. Depending on the marketplace in your geography, you should expect to pay between $2.19 and $2.89 per gallon in today's market. You may also find offers to lock-in a price for the winter, though since this is a speculative move, choose carefully. 2) The best deals are found by shopping around. Because you own your storage tank (probably in the basement), you are free to use any oil company you choose. For convenience, I recommend one that offers automatic delivery. 3) Lastly, it is absolutely critical to get your furnace cleaned once each year. Oil-fired equipment loses efficiency rapidly if it is not cleaned annually.

Overall, you will find oil produces a warmer, more comfortable heat than gas. Of course, depending on the year, oil can sometimes be more expensive to operate than gas, though they are usually in the same ballpark.

Good Luck!

Hi D. I
Welcome to the area!! and real winter!!!
I suppose by now someone has told you that there is a tank in the basement, crawl space or outside that the oil co. comes and fills. Often they are about 200 gal. You can ask them to fill it, and then they come every so often and keep it full. You can ask them to put 100 gal in and then you know how much it will cost, and they will again come every month or so. You can also tell them to come only when you call. Then you have to keep track of how full the tank is. That is an especially good way to do if you are renting and won't be there all winter.
Check what kind of fuel they have been using in it. It depends - so ask if you need to use Kerosene.
As far as cost and comparison, unless a company is trying to get your business they will all be fairly close, just like all the gas stations have similar priced gas, unless you run into a gas war situation. Sometimes in the early season you can get a deal if you sign up for the winter and go onto a budget plan, but doubt that would still be available.
Then you simply set the thermostat and it works.
We were just as helpless when we moved to KS and had a cistern for our water. Had to ask where you even got water and how to transport it. It was such a culture shock. But a great experience.
God bless you & hope you have a great stay on the east coast.
K. ---- SAHM married 39 years --- adult children --38,33, and twins 19