NO oil contract

DUDE! · 11-22-2009, 06:25 PM

First time in about 4 years we didn't go with a lock-in contract on fuel oil. The company I was going with mandated a lock in by end of July, not much time to decide. If I had locked, it would of been 2.499 a gallon, got oil on friday, 2.369. Only time will tell. We locked in last year at 4.99 but if it came lower, you paid lower price, we paid monthly installments. My sister prepaid, 4.79 last year and took a beating, prepaid up front, is price you paid.
Not on automatic delivery any more so I just need to remember to check the tank level.

Scuba_Dave · 11-22-2009, 06:35 PM

We filled up last Spring when it was $1.99 a gallon
With wood as heat in Fall & Spring & helping in the winter we usually only go thru 1 tank of oil a year
I haven't turned the heat on yet

brokenknee · 11-24-2009, 04:49 PM

I locked in propane last spring for $1.39 gal, last year my lock was $2.49 and the price dropped. I just called and the price is now $1.99 but they do not lock in this time of year.

At least this year it looks like I will come out ahead of the game.

Leah Frances · 11-24-2009, 10:33 PM

We use a 'budget plan' that starts in August. There is no 'locked' price. We just pay the same every month based on the previous years consumption and the oil company's projected price of oil for the winter.

2007 prices were super high and our consumption was too. So in 2008, our monthly payment was high. BUT (

) the price of oil dropped in half and our consumption went down 30%. So, by January, the oil company halved our monthly 'budget price' and they still had to pay us back some money at the end of the heating season.

chrisn · 11-25-2009, 05:32 AM

Quote:

Originally Posted by Leah Frances

We use a 'budget plan' that starts in August. There is no 'locked' price. We just pay the same every month based on the previous years consumption and the oil company's projected price of oil for the winter.

2007 prices were super high and our consumption was too. So in 2008, our monthly payment was high. BUT (

) the price of oil dropped in half and our consumption went down 30%. So, by January, the oil company halved our monthly 'budget price' and they still had to pay us back some money at the end of the heating season.

We have the same thing here for natural gas, saves on those huge heating bills

brokenknee · 11-25-2009, 03:43 PM

We also have a budget plan available, but we can also lock in the price of propane, I think until the first of August.

DUDE! · 11-25-2009, 03:58 PM

Part of the reason for not locking in was the company I was using required lock in by early august, the "experts" say not to lock in til fall but I didn't find any companies around here letting you wait that long. We could budget payments but we were locking in for a set amount of gallons. Last winter we signed up for $4.99 but if was below, we got lower price, but monthly payments were high, until, like said above they dropped our payments some due to price coming way down. This year if we wanted protection for price coming down we had to pay $200.00 up front, just decided to take our chances on the open market.

brokenknee · 11-25-2009, 04:08 PM

When we lock in we lock in, if the price goes down, well to bad for us. Last year we got burnt, didn't lock in the year before and got burnt. This year it looks like we did good.

The lock is for a set amount of propane, you can get pretty close from looking at the prior years consumption. It doesn't mean you have to burn it all, just take delivery. Of course if the price goes up and you didn't use your allotment, they don't complain.