Purchasing Fuel Oil

ed broderick_3

What is the best way for homeowners to purchase fuel oil for the upcoming heating season? Is a contracted fixed price better than COD suppliers. Since I use about 1,200 gallons for the season, Iam not sure how to shop for best supplier. Want to make more than a educated guess. I noticed a few suppliers have started a "participation fee" which they want upfront without knowing the cost of fuel they will be charging. Would appreciate comments.

Gene_3

I don't

recommend giving anyone money up front for oil. Contract to buy gallons at a fixed price, yes. If the company goes belly up you GOT NUTIN. It's happened here in CT.

I would also beware of large companies that own many many oil companies, they get the oil for very cheap and charge full service price, not fair, good business, but not fair.

Stick with locally owned oil companies that offer service plans and a budget plan, on these you'd contract to buy 1,000 gallons for the year at $1.60 per gallon, for instance, payments would be made from Aug - May and broken up evenly each month, at the end you'd anty up, if you burned less they pay you the difference and vice versa. All last winter I paid $1.50 and I owe $100 after my last top off but we had a hard winter.

Big Ed

oil

> What is the best way for homeowners to purchase

> fuel oil for the upcoming heating season? Is a

> contracted fixed price better than COD suppliers.

> Since I use about 1,200 gallons for the season,

> Iam not sure how to shop for best supplier. Want

> to make more than a educated guess. I noticed a

> few suppliers have started a "participation fee"

> which they want upfront without knowing the cost

> of fuel they will be charging. Would appreciate

> comments.

Big Ed

oil

> What is the best way for homeowners to purchase

> fuel oil for the upcoming heating season? Is a

> contracted fixed price better than COD suppliers.

> Since I use about 1,200 gallons for the season,

> Iam not sure how to shop for best supplier. Want

> to make more than a educated guess. I noticed a

> few suppliers have started a "participation fee"

> which they want upfront without knowing the cost

> of fuel they will be charging. Would appreciate

> comments.



If the price of oil is steady the cod would be cheaper per gallon but you can be taking a risk of being cheated. Very few but they are out there...

If the market is unsteady the honored lock in from a larger company is a cheaper oil price....

Something to remember if you

DanHolohan

Those plans

usually guarantee a fixed ceiling price on the oil you'll buy next heating season. Best deal in this business. You may pay less, but you will never pay more than the agreed-upon price.

Joe Brix

Yes but

many want a "processing fee" for the cap price.
Some lock in's are free.

Checkout www.clickableoil.com

I'm gonna gamble and wait until summer to lock in. I think it might still drop a few cents.

DanHolohan

Talk to me then.

I'll bet it's about 50 cents higher. That's what I'm hearing.

DanHolohan

And, Joe,

just to further explain. The oil company uses the money from people who join the club to buy futures. That's how they lock in the price. In all the years I've been watching this, I've never seen that futures price go down as we got closer to the end of the summer. It's always just the opposite. The company may offer a fixed price at that point, but it will probably be higher than it is now.

My oil company was actually selling oil at a fixed price that was below what they were paying for the oil at the end of the winter. This winter was particularly cold, and they were honoring their contracts with their customers. Good people. The folks who were members of the Club sure were happy that they grabbed that price last year, even though it seemed high at the time.

Let me know how you make out. Good luck!

Steve_35

We've pre-paid with the same company for the past 4 years.

Lowest ROI we got was 20%. This year it was close to 50%.

sootmonkey

green wood

It is cheaper to buy your wood green in spring/early summer, and let it dry in your yard for winter use. If you wait till fall, to buy your wood, you will have to pay much more, for it will already have to be seasoned. Lots of procrastnators, not much dry wood. Same with oil. I buy early, and have done well.

EJW

Start a co-op

This is catching on around here. EJW

DanHolohan

Co-ops

still have to buy oil, and they're faced with the same challenge that any oil company faces - when to buy the futures, and how much to buy. It's a scary business nowadays.

Joe Brix

I agree Dan

The spot price is droping now as it always does at the end of the heating season. I'm hoping the high price this year kept inventories up and we need to hear if a warm weather is in the forcast for next winter. I'm still in my current contract and have to buy 150 more gals to meet my 700 gal a year minimum amount. One more delivery before summer, then I can lock in my next year's price. Funny, we've become like oil commodity traders.