Long Island Oil Companies to lock in with

Long Beach Ed

Topping off your tank in June isn't a scam, though the bill is the last thing any of us needed this summer.

Oil companies traditionally fill tanks at the end of the heating season for several reasons. It's better for the equipment as there is less condensation in a tank that is full. It helps with cash flow through the dead summer months, and traditionally the end of the heating season is a cheap time to buy oil.

Afterall, who is to say oil will not go up in September?

gmam

Locking in with an oil company

New oil customer. I want to lock in before the winter. Any suggestions on what company to use? Locked in oil price per gallon?

Bruce M_2

May Not be a Good Idea

Locking in a price right now may not be a smart move. Saudi Arabia just announced they are raising output. Check prices with several oil companies and then call an independent and find out the cash delivery price. You will find there is quite a difference. Last, call National Grid and switch to gas if it is available

Ken D.

Lock in.

I have pre-purchased oil for years. Only got stuck two years ago when the oil was cheaper than I bought it for although most times I make out. I do it because the oil co. I deal with actually buys and stores your oil (or so they say), so shortages will not affect me.

Steve_95

LI lock in

My L.I. oil company would NOT lock me in last year. They said the market was too eratic. I started the year paying just over $4.00/gal and finished the "season" at over $4.60!

What really disturbed me though was the "computer" generated delivery I got in the first week of June for over $800.00. Although I use oil for DHW I did not see the urgency of buying an additional 170 + gallons (I have 2 - 275 gallon tanks) just in time for summer when my budget requires using my money for something else.

Three years ago when I was "locked in" with a different company they didn't want to deliver after March at the then "low" price.

I know they are in business to make a profit but it seems building a relationship with a good paying customer would be a good place to start.

Changing to gas is not a practical option for me because my steam boiler is only 4 years old.

Not trying to be unfair to the Oil guy but feeling a little abused and frankly fearful of what the future holds. I guess Darwin's principles apply to homeowners.

Steve_95

Not a scam

I appreciate what you're saying Ed. Didn't mean to imply a scam. I guess I'm just feeling the squeeze along with everyone else. Cost too much to heat the house, cost too much to gas up the car. We're all in the same boat. When they topped off in years past it wasn't as noticable or as costly. Where will it end?

Leo_11

A Lesson

Steve said, "Three years ago when I was "locked in" with a different company they didn't want to deliver after March at the then "low" price.
I know they are in business to make a profit but it seems building a relationship with a good paying customer would be a good place to start."

Your oil company has to lock in with their supplier and it usually expires around March or April. They are!! trying to build a relationship with the customer. There are only so many oil customers to go around for all the oil companies so keeping and hopefully gaining is the name of the game. Any company worth it's salt will not purposely alienate their customers. Also remember, right now people are slow to pay, the oil company has their account electronically drafted within ten days of their tracter trailor delivery. Care to guess how many gallons in that trailor? If half the customers can't pay for one delivery only how much is the oil company carrying? It doesn't take long to kill profits. How many business's today carry the customer, most say cash or credit. Granted oil companies are in business to make money but the local company isn't making record profits. I work for a company that prided itself on no layoffs and wasn't afraid to spend money on equipment. Now two people have been let go, our health ins plan is crap, and they scrutinize every dollar spent. The crazy prices are hurting everyone at all levels.

Leo

Steve_95

Thanks

Leo, I think you misunderstood what I wrote. Or perhaps I didn't state it correctly.
Three years ago I was locked in at a certain price. It turned out to be a good move because prices had gone up through out the season.
The oil company did not deliver oil for some time. It was my feeling that they were waiting until AFTER my contract expired to deliver so that they could upwardly adjust the price.
So I called them. Although they would not confirm my theory directly, they did give me a date for my next delivery and this date happened to be AFTER my contract expired. So I insisted on a delivery. Which I got.
Did I do something wrong by insisting that they honor their own contract?
Seems to me fair is fair and a contract binds both sides.

Leo_11

You did right

Steve said, "Did I do something wrong by insisting that they honor their own contract? Seems to me fair is fair and a contract binds both sides."

I agree you did right. Companies I have worked for reach the end of the contract time and have to move product. If the oil company contracted with their supplier they have to move so many gallons in a given period of time or pay a surcharge. Usually at the end of the contract period if the winter was milder than planned they scramble to take delivery of the last of the contract. I can't speak for all companies but if one didn't reserve enough oil I can see it happening the other way at the end of the contract period.
As a tech I get all the face to face dealings with customers so I hear both the good and the bad. I can sympathize because I use oil also.

Leo

Steve_95

? for Leo

Leo-Thanks for your understanding. You are a gentleman.

Please share your opinion on oil suppliers in this respect:
My current supplier provides a service contract for me in return for my commitment to buy oil from him. There is no charge for this service. Is this unusual or common practice? I've read on this site that some people pay for this contract.

The service provided includes annual maintenance (prompt and curteous) but I don't know if they do everything required, such as CO check etc. They also have responded to no heat calls (twice) over the last few seasons, once after 11PM.
As a consumer (if you didn't work for an oil co.) would you prefer to pay for a service contract and shop for oil at the best price or stay with my arrangement, whether locked in or not.

I appreciate your advice. I read this site daily and you guys always provide an education for us non experts.

Robert O'Brien

Steve

"There is no charge for this service" So who's paying for this?
As far as locked in prices,it's a crapshoot.If oil goes up you'll be happy.You'll be miserable if it it goes down

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Bruce M_2

Service Contracts

As a general rule, when an oil company gives you a "free" service contract in return for exclusively buying oil from them they charge more for the oil. If you look in the yellow pages or the local papers you will see quite a few companies that deliver oil at a much lower price. On the other hand, there are not too many companies that will provide you with a service contract and have the large pool of technicians and parts on hand that the large oil companies have. A large oil company has the ability to lose money on a particular service contract because of the large quantity of service contracts that do not require expensive parts. Most small service providers believe that they cannot lose money on any contract. The large oil companies know better that they can.

Leo_11

Steve

Service contracts are a marketing tool. Oil companies offer them as an attempt to get then keep customers. Most of the on going money is made selling oil. Some companies give them free if you buy their oil while others charge for them. It all comes down to how you feel about dealing with that certain company. As far a quality of service or a service tech's ability, that's a crap shoot. Some companies put warm bodies in the vans, others promote training. Then you have the human factor, some guys take pride in their work while others get a pay check.

Hope this helps,

Leo