Bundle up America! Fall is here, which means winter is just around the corner. Enjoy the few warm days we have left, because very soon, old man winter will be knocking at our doors.
If you are like most heating oil customers, you go through the same routine each year, wondering if you are going to pay too much for oil. Should you lock in a price with your local provider, or purchase oil COD as you need, or can afford to. Ask any oil company the same question, and they will tell you what is in THEIR best interest. Remember, they want your money, and locking you into a contract guarantees them to get it, while a COD company will tell you the opposite. They will say that they can save you a lot more, because they typically work off smaller spreads. The problem with purchasing COD is that you leave yourself open to the risk of much higher prices if the market rises like we have seen in recent years. No one has a crystal ball to tell the future, or when the next hurricane Katrina is going to hit. So what is an oil customer to do?
Find a reputable company in your area. If you can’t, we may be able to assist you in finding one. Speak to them about a cap price for your oil, and be careful to audit your bills each month. There are companies out there who will give you a cap price, and immediately charge you the highest price for the duration of your contract, and there is nothing you can do about it. Also, ask friends and family members about their providers, and if they would recommend them. Another idea is to find out if there are any oil buying groups which you may be able to join in your area. Many of these companies are good for the consumer, because they monitor the oil markets daily to get you the best possible price at any given time. Finally, look for a company that offers a free 24 hour service contract with your oil. Most companies charge anywhere from $100 - $400 for a service contract, which you rarely use, except for your annual cleaning. If you do purchase an annual service contract, be sure that it is no more than 20% higher than the average cost of a cleaning in your area. For example: if a cleaning is $149, you should pay no more than $180 for your service contract. Anything more than that, then you should shop around. Remember, the oil companies are not as loyal to their customers as their customers are to them.
Our advice is Buyer beware. Be an educated consumer, and don’t be afraid to switch companies if you are unhappy with your company’s service or price.
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