Comfort Line - Questions and Answers

How are oil prices determined?

Oil prices are determined by supply and demand and economic factors on a national and international scale. Futures contracts for crude oil, gasoline and heating oil are traded on the New York Mercantile Exchange (NYMEX). The daily futures trading activity on the NYMEX has an impact on both wholesale and retail petroleum prices.

Do oil companies make more money when prices are higher?

Major oil suppliers with crude oil reserves generally have higher profits as prices rise. However, retail heating oil suppliers like Hart & Iliff do not make more money as prices rise. We need to make a certain "margin" (difference between what we pay and what we charge) in order to cover our costs and provide you with the quality products and services you expect and deserve. This margin stays the same regardless of whether prices are high or low.

Do you wait until prices are the highest before making an oil delivery?

Absolutely not. Deliveries are made using a computerized "degree day" delivery system. When the computer projects that you have used 70% of the fuel in your tank, it prints a delivery ticket, which is then forwarded to the Delivery Department.

Occasionally, I see ads in the newspaper from discount oil companies charging less per gallon for oil than Hart & Iliff: Why the price difference?

Discount oil companies don't make less profit, they just don't offer many of the products, services and conveniences demanded by the vast majority of homeowners. That's why studies show that nationally, only about 10% of all heating oil customers buy their oil from discounters.

One example lies in the area of service for your heating and cooling equipment. Hart & Iliff has one service technician for every 300 customers. These service technicians are highly professional, thoroughly trained and certified by The National Oil Heat Research Alliance (NORA). Many discounters do not have their own service departments, so if something goes wrong, you are left to scramble for yourself. Discounters that do provide service often use unreliable subcontractors or uncertified technicians and may have as many as 1,500 accounts for each service technician. With a discount company, you can't get competent service when you need it.

There are many other major differences between discount oil companies and full service companies, like Hart & Iliff. These differences are summarized in the accompanying chart that can be used to compare Hart & Iliff with discount oil companies, or for that matter, with any other oil company.