Industry Study
jumped this year likely because a number of
the current respondents appear to be more
diversified petroleum marketers.
sistent among respondents and in line
with the goal from last year.
TABLE 7
What is your goal margin on fuel oil?
Fuel Oil Sales by Volume
When looking at the percentage of fuel
oil sales by volume, it is similarly not surprising that roughly 87% of that volume
goes to residential customers.
Retail
Commercial
Propane
$0.69
$0.32
$1.17
Bulk Plant Operations
Some 48% of respondents operated a
bulk plant with an average storage capacity
of 152,500 gallons. Some 67% of respondents
stored other petroleum products in their bulk
plants and 93% had substantially upgraded
their bulk plants in the past 10 years.
TABLE 6
Percentage Breakdown of
Annual Fuel-Oil Sales, by Volume
Residential
87%
Commercial
12%
Industrial
1%
Biofuel and
Ultra Low Sulfur
There has been a strong movement
in the industry towards biofuel-based
heating oil and ultra low sulfur diesel.
This has been driven for a range of reasons—these green fuels tend to appeal to
residents in the primary heating markets;
they can significantly simplify heating
appliance maintenance; and they represent an opportunity to be an acceptable
fuel in any low carbon fuel standard that
might be set in key heating oil markets.
One-third of respondents (33%) sold a
biofuel blend. In addition to biofuel, 61%
sold a heating fuel with ultra low sulfur
content, which was a decrease from last
year (which might have reflected more
New York respondents).
Petroleum Futures, Price
Protection and Online
Ordering
Some 73% with this year's respondents
participate in the futures market and 71%
offer price protection programs. Of those
that offer price protection 38% of their
customers take advantage of the opportunity. Some 43% of respondents charge
a fee for the program and 31% a buyout
option. A total of 67% offer their customers online ordering.
Fuel Margin
The average fuel margin was fairly conwww.fueloilnews.com | FUEL OIL NEWS | December 2014
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