Tight rein on costs improves margins
The rapid escalation of fueloil prices during mid-winter marred the credibility of the heating oil industry, and did no good to countless budgets. The 1983-84 season was colder than normal and colder than the previous season, but not so cold that prices should have shifted 20 to 25 cents in a short period of time. The season had started off with prices below the previous year. Fueloil, for the first time since the embargo, was in a good competitive position with natural gas. Stocks were low and when the degree-days started, there was some panic and prices took off. The damage to fueloil's public image is discussed. The additional degree days seemed to have improved efficiency of delivery so the rewards of the season were good. A tight rein was kept on costs, margins improved and profits were better. These conclusions were reached as a result of a questionnaire sent to hundreds of marketers all over the USA.
- OSTI ID:
- 6194480
- Journal Information:
- Fueloil Oil Heat Sol. Syst.; (United States), Journal Name: Fueloil Oil Heat Sol. Syst.; (United States) Vol. 43:9; ISSN FOHSD
- Country of Publication:
- United States
- Language:
- English
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