How Much Does the Price of Oil Affect the Cost of a New Roof

We got to talking about gas and oil prices the other day. Someone asked if we thought oil prices affect the cost of a roof. Well we did some thinking and Roofing Tutor came up with this short article on the subject. Oil prices don’t cause roofing prices to fluctuate like gas prices, but they do make a difference in the bottom line you’ll pay for a new roof. There are a couple key reasons for this. Here’s a look at a couple of major ways the price of oil will affect the cost of a new roof.

How Oil Prices Affect Roofing Prices

1. Shingle Prices May Rise if Oil Prices Rise

Oil is a primary ingredient in asphalt shingles. There’s a definite correlation between the prices, though again, shingle prices don’t tend to be quite as volatile as gasoline prices. With consistently high material costs, i.e. expensive oil, the asphalt shingle manufacturers do raise the price of their products. The also high demand for asphalt for roadways and home improvement projects also plays a role in the supply and demand of asphalt.

2. Oil Prices Increase the Overhead of Roofing Contractors

When oil prices rise, gas prices rise, and when that happens local contractors feel it in the wallet. It costs more for them to fill up their trucks with unleaded gas or diesel fuel. On the job site, gas-powered generators and air compressors cost more to run as well. While many of them make less profit because of the price hike, they may still find it necessary to pass on part of the increased cost to their customers. This is why getting a firm bid in writing is important.

How Much Does the Price of Oil Affect the Cost of a New Roof?

While it is impossible to know the precise impact on prices, total roofing costs have risen 5% to 10% in the last couple of years as the cost of gas has risen by about 25%. Roofing remains a competitive business, however, and roofing contractors have absorbed much of the increase as the cost of doing business.

 

Summary:

Well we have seen a slight reduction in oil prices in the last year it is unlikely that the pricing system will drop enough to affect roof costs.  It is a good idea to get several bids form different contractors and you ma also consider other materials for your new roof such as metal or wood shakes. A new roof is a large expense so take your time and ask lots of questions.

 

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