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Managing Heating Oil Prices with a Pricing Plan
Choosing among payment options for your home heating oil can be confusing, since it’s impossible to know what will happen with oil prices in a given year. But it still pays to understand what buying options are available to you, and how to choose the plan that’s best for you and your family.
Here are the three payment options available for your heating oil:
Market Price – In a market price program, heating oil prices change from day to day with no price ceiling or floor. That means you can take advantage of falling prices without paying a fee – a great choice if prices never go up. But sometimes they do go up – in which case you’ll have to pay the higher rate.
Fixed Price – A fixed rate (pre-buy) rate locks in a heating oil price for the year, no matter what happens in the market. A fixed price protects you from rising prices, but also prevents you from benefiting if the market price drops.
Price Cap – A price cap program limits how much your heating oil price can rise – but not how far it can drop. Like all heating oil suppliers, we charge a fee for this service: the fee covers our costs to purchase insurance from our suppliers in case the market price drops (the fee only covers the cost of the insurance; we don’t profit from collecting it). The bottom line: while no one can predict where oil prices will go, one thing is certain: if you enroll in our price cap program, they can only go down from your agreed upon rate.
Price Cap enrollment is open now – even if your current plan has not expired. Contact us today to enroll before heating oil prices rise!