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Question: 21 
Why does the price of heating fuel sometimes increase during the summer months when the temperatures are warmer and one would expect that consumption has decreased?

The regulated maximum price of furnace oil and stove oil heating fuels is directly tied to the benchmark pricing for these products at the time. While demand for heating fuels may decrease as temperatures get warmer, many other factors can influence market pricing outside of demand/supply issues during that time of year. Higher grade products can act as substitutes for lower grade products in some cases with negligible differences in performance. As a result, what affects the market price of one product can affect the prices of the others, though not necessarily to the same degree. This can happen at any time of year. 

 

 

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