Diesel versus Central Heating oil

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Rosigres

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If as I understand it there is little or nearly no difference between Diesel & Central Heating Oil why has the price of heating oil recently come down yet Diesel has gone up.
eg just before christmas I bought heating oil at 68p per litre and just over a week a go I paid 58p per litre. Diesel has done nothing but go up since christmas, now $1.419 per litre last night.
I know there is differences in tax etc but surely they should have both been going up?
Anyone explain this or are oil companys or someone else profiteering?
 
Heating oil from the past, and Jet A of today, typically have sulfur contents of 3000 to 4000 PPM. In recent years, heating oil sulfur has been reduced to 2000ppm, then 500ppm, then 15ppm. Sometimes depending on location, such as which state.

I have no way to know if your local heating oil is Ultra Low Sulfur 15ppm fuel.

Modern diesel fuel is 15ppm or less.
 
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Supply and Demand. Warmer weather is approaching which means driving season aka higher demand. Conversely it also means there's low demand for heating oil. Does Canada require the sulfur levels of heating oil match that of ULSD? If not that might be a component of the cost difference.
 
Heating oil is dyed red looks the color of ATF. If the police dip your tank and see dyed heating oil in your diesel truck you are screwed.

In the winter diesel in the northern states is thinned with kerosene similar so it does not gel up.
 
Heating Oil is also a seasonal use, diesel is not. As a result, Diesel has gone up with the increase in the cost of the crude oil used as an input. Heating oil on the other hand, is in its low demand period - meaning prices typically are lower (assuming the crude price stays the same). Crude prices have increased though, so Heating oil prices instead of dropping have just remained flat for the time being.

Just to add to it, Diesel and Heating Oil have their own specifications. They are similar, but not identical. As a result, you can usually use diesel in a pinch to replace heating oil, but not the other way around. In some places, all the heating oil would actually meet the diesel spec, but not all - all depends on the supplier and where they get their fuel from.
 
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Oil companies price based on what the market will bear.
I tracked crude prices vs retail gas and diesel for years.
The companies price for max profit is the trend I discovered.
 
Originally Posted by Eddie
Heating oil is hot taxed as high as Diesel fuel. I think it is illegal to run heating oil in diesel rigs. . Ed


Does anyone ever get caught, at least in a passenger car? What about people making diesel from waste cooking oil? They don't pay any taxes on it.
 
As far as I know many states went to ULSD long ago. New England and Neuyorkistan went to all Ulsd back in 2007. They're the same thing plus a dye pill here. I have a 2014 Massey tractor and the dealer said go ahead and use HHO in it. I have much of the time and it has been clogging up the screens for regeneration at exactly the same rate as road diesel. I do give it a hefty dose of Power Service just to be on the safe side.
 
Originally Posted by atikovi
Originally Posted by Eddie
Heating oil is hot taxed as high as Diesel fuel. I think it is illegal to run heating oil in diesel rigs. . Ed


Does anyone ever get caught, at least in a passenger car? What about people making diesel from waste cooking oil? They don't pay any taxes on it.


Its a $10/gallon fine or $1000/incident if caught.
 
It is actually an IRS fine. The fine is $10 per gallon capacity of the tank plus automatic IRS audit for the 1st time you get caught. It doubles the next time. They will also come to your residence and check all your other vehicles. I know of 2 businesses that they have pulled into and checked every vehicle that they have.
 
15 PPM maximum for road driven diesel fuel is federally mandated. Off road diesel is dyed red. Not sure about home heating oil whether it's dyed or not. In most states a passenger vehicle is never stopped and checked for diesel color in their tanks. OTR trucks, yes. Pickups and cars, not anywhere I have been. Modern diesels may not like the higher sulfur found in heating oil and off road diesel. May foul the DPF and SCR.
 
They have a heck of a time finding drivers here. Those that work work 72-80 hour weeks, meaning lots of overtime. Meaning added expense to the end user.

We had a cold snap in jan 2018 and the state PUC mentioned there were five licensed HHO drivers in the state that weren't gainfully employed. They also said be responsible and make sure your path is cleared and well-sanded, b/c if the driver fell and got put out of commission, he couldn't be replaced.

My dealer couldn't keep up, so I went to the gas station and bought off-road diesel... a dime cheaper than on-road.
lol.gif
Filled my house off with 5 gallons every evening. Kept the level from falling as fast and eventually found a new dealer a few weeks later that could take me on as a customer.
 
Originally Posted by rideahorse
It is actually an IRS fine. The fine is $10 per gallon capacity of the tank plus automatic IRS audit for the 1st time you get caught. It doubles the next time. They will also come to your residence and check all your other vehicles. I know of 2 businesses that they have pulled into and checked every vehicle that they have.

Diesel here also has state taxes on it. So if you did managed to get busted they fine you and then bill you the state taxes calculated on what ever your odometer says.

Ive used normal road dealer in my oil boiler a bunch of times with out issue. I also keep some diesel onhand just in case I run out.
 
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Originally Posted by Fitter30
You can burn it but heating oil has a lot less sulfur in it.


It is the other way around - Home heating oil used to always have the highest Sulphur content.

Also - I remember heating oil was always "dirtier" it would plug the filters often, where diesel would not.
 
I routinely see large yachts and fishing boats getting filled up at the docks by home heating oil trucks. Because they are technically "off road" vehicles boats can burn the dyed red home heating oil, and it works fine in older, traditional marine diesel engines. I'm pretty sure home heating oil is basically the same as traditional diesel we used to purchase on the road too, but today's highway diesel is much lower sulfur. They are lowering the sulfur in home heating oil too. I know in Massachusetts home heating oil is now ULSD at under 15PPM sulfur. I'm pretty sure many other states are going the same way, meaning that on-road diesel and home heating oil are basically the same stuff. What is illegal is to burn the dyed red diesel or home heating oil in "on road" vehicles because the road taxes haven't been paid.
 
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