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From: http://www.eia.doe.gov/bookshelf/brochures/heating oil/index.html

What Are the Main Components of the Price of Heating Oil?

Heating Oil Price Components, 2007
Heating oil price components for 2007 in percent per gallon. The illustration is a tanker truck divided into three segments: Crude oil 62%, Refining 16%, Marketing and Distribution at 22%.
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U.S. Distillate fuel Prices, 2005-2010
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Source: EIA, Short-term Energy Outlook (September 2009)

Heating oil prices paid by consumers are determined by the cost of crude oil, the cost to produce the product, the cost to market and distribute the product, as well as the profits (and sometimes losses) of refiners, wholesalers, and dealers. In 2007, crude oil accounted for 62% of the cost of a gallon of heating oil. The next largest component, distribution and marketing costs and profits, accounted for approximately 22% of the cost of a gallon of heating oil. Refinery processing costs and profits accounted for another 16%.

How Could I Reduce My Heating Oil Bill?

Purchasing Options

You can arrange to have your tank filled in late summer or early fall when prices are generally lower. Talk to your heating oil dealer about participating in a budget plan to help stabilize your monthly bill. You can also talk to your heating oil dealer about "cap" or fixed price protection programs, which can help keep costs down.

Efficiency and Conservation Measures

You can obtain a home energy audit to ensure that your furnace and appliances are running efficiently before the season begins. You can achieve conservation gains by weatherizing your home, including such projects as installing proper insulation in your house and around your hot water heater. Quick and easy fixes such as caulking and weather stripping windows and doors to seal out cold air also help save energy. Installing a programmable thermostat and reducing temperature settings on your thermostat, especially when you are not at home, are other ways to reduce your heating fuel costs.

Assistance Programs

Both Federal and State energy assistance programs are available to heating oil customers who have a limited budget. For example, the Low Income Home Energy Assistance Program (LIHEAP) is a Federal program that distributes funds to States to help low-income households pay heating bills. Additional State energy assistance and fuel fund programs may be available to help households during a winter emergency.

Find out if you qualify for assistance in your State or contact your local heating oil dealer.