Managing Your Fuel Oil Costs in 2017/18

Choosing the heating oil pricing plan that’s right for you can be challenging, since oil prices can change considerably from year to year. But like any buying decision, it pays to know the facts so you can make an educated choice.

Heating oil pricing basics

There are three basic ways to buy heating oil – you can pay:

• The market price, which changes from day to day based on global oil prices, with no high or low limit;
• A fixed price, which locks in a heating oil price for the gallons you buy, no matter what happens in the market; and
• With a price cap, which limits the maximum price you will pay for oil, but not the minimum price you could pay if prices drop. Price Cap programs always come with a fee, which covers a dealer’s cost to insure the gallons they buy in case prices fall.

When we talk about “Price Protection,” we’re referring to buying your fuel oil at either a fixed or capped price, which protects you from swings in market price.

“Budget Plans”

Most heating oil providers will also offer some kind of budget plan (ours is called EZ Pay), which divides your annual bill into equal payments (usually monthly) based on an estimate of the amount of heating oil you’ll use in a typical year. Our EZ Pay plan can be combined with fixed price and price cap programs to give you more predictability for monthly financial planning.

The bottom line

Each of these options has its advantages and disadvantages – and much of the decision about which plan is right for you depends on your tolerance for risk. If you need some guidance to choose the right plan for your home and family, just let us know.

Need help in choosing a Pricing Plan that’s the right fit for your family? Contact us today – we’re happy to talk about it!