As natural gas prices increase, many homeowners are choosing to heat their homes through the winter months with heating oil. Access to heating oil requires that you pay a third-party provider to deliver your oil on a regular basis.
Understanding your pricing options when it comes to investing in heating oil will help you obtain the best possible deal on your heating oil in the future. Here are three types of pricing options that you need to be aware of.
1. Capped Pricing
If you want to take advantage of a capped pricing plan, you will likely need to enroll in a program offered by a service provider. These programs are designed to allow homeowners to budget for their heating oil needs by ensuring that the price of the heating oil they use throughout the winter months will not go above a set (or capped) price.
Taking advantage of a capped pricing plan allows you to avoid any unpleasant surprises when you get your heating oil bill.
2. Fixed Pricing
When you need to know exactly how much you can expect to pay for your heating oil, then a fixed pricing plan can be the answer. Companies that offer fixed pricing plans typically calculate what they think the market price will be for heating oil during the winter prior to the cold weather setting in.
Unlike a capped pricing plan whose prices can fluctuate up to the capped price, you will pay a single price throughout the winter season when you sign a fixed pricing contract. These contracts are usually executed during the summer, so be sure to ask your heating oil provider for more information well in advance of the winter months if you want to take advantage of the consistency fixed pricing can provide.
3. Pre-Pay Pricing
If you know approximately how many gallons of heating oil you will likely use during the upcoming winter, then you can take advantage of the savings that pre-pay pricing plans provide. These plans allow you to pay for your heating oil at a reduced rate upfront.
If you use more than the gallon amount included in your pre-pay contract, you will simply be charged the current market rate per gallon. When you are able to accurately estimate your heating oil needs based on consumption in previous years, a pre-pay pricing plan can save you a significant amount of money.
Be sure that you understand your pricing options when it comes to purchasing heating oil so that you can get the best possible deal on your heating oil for next winter. For more information, contact suppliers like Fox Fuel Co.Share
18 October 2016
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