The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding
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www.fueloilnews.com | FUEL OIL NEWS | DECEMBER 2016 29 FUEL OIL SALES BY VOLUME Even though the respondents to this survey vary year-to-year, it happens that this year's respondents report that of fuel oil sales by volume, 79% is to residential customers—the same percent- age that a different mix of respondents reported in 2015. BIOFUEL BLENDS AND ULTRA-LOW SULFUR The industry trend continues towards biofuel content in heat- ing oil, and towards ultra-low sulfur fuel. A manifestation of the trend that drew much attention was the adoption this year of legislation that will increase the biofuel level in heating oil sold in New York City. Under the law, signed by Mayor Bill de Blasio in October, biofuel content will increase to 5% by Oct. 1, 2017; to 10% in 2025; to 15% in 2030; and to 20% in 2034. The current level of biofuel in heating oil sold in the city is 2%. The "green" appeal of such fuel is often cited as a benefit, along with a reduced carbon "footprint." Nearly half of respon- dents (48%) sell a biofuel blend. Among those that report selling a biofuel blend, 82% say they sell B5. Another 21% say they sell B20. The long-running, industry-wide shift toward ultra-low sulfur fuel continues (in part because of mandated implemen- tation in many markets) with 79% reporting that they offer the product. PETROLEUM FUTURES, PRICE PROTECTION AND ONLINE ORDERING Less than half of respondents (46%) report that they participate in trading of petroleum futures, whether No. 2 oil, gasoline or LP Gas. A slightly greater percentage (48%) report offering a price- protection program this season. Only half of those reporting that they offer a price-protection program say they charge for it. Slightly more than one-quarter (26%) of respondents offer- ing price-protection programs say they offer their customers a buy-out option. Nearly half of respondents (49%) say they offer online ordering. BULK PLANT OPERATIONS To the question, "Do you have your own bulk plant facilities," TRACTION IN FORWARD AND REVERSE FOR 1/2 TON TO CLASS 8 VEHICLES • UTILITY TRUCKS • FIRE TRUCKS • AMBULANCES • SCHOOL BUSES • PLOW TRUCKS • TRACTOR TRAILERS 800-766-7768 www.onspot.com *Approved for use in states with chain control areas RETAIL COMMERCIAL 96.6% 89.7% WHAT IS YOUR GOAL MARGIN ON FUEL OIL RETAIL FUEL OIL BULK FUEL OIL RETAIL GASOLINE BULK GASOLINE LGP/LNG, RETAIL OR BULK HEATING EQUIPMENT SALES AIR-CONDITIONING EQUIPMENT SALES REVENUE SOURCES 94.1% 33.8% 22.1% 25.0% 26.5% 64.7% 48.5% RETAIL FUEL OIL BULK FUEL OIL RETAIL GASOLINE BREAKDOWN OF ANNUAL HEATING-OIL SALES, BY VOLUME 79,926.74 10,356.81 1,475.74 The industry trend continues towards biofuel content in heating oil, and towards ultra-low sulfur fuel.