OIL CONTRACTS FOR THE COMING SEASON

07.10.08

It should be an interesting season in the heating oil business. The question all users would like answered is: will any pre-pay plans be available and if available, at what price? Then of course, should you buy them?

As this column goes to press, two area NW CT corner suppliers, Hull Fuel and Lindell Fuel, do not yet have a plan available for consideration. Two other suppliers are offering price-cap plans, requiring an insurance policy, along with a fixed price alternative. The price-cap plan seems to set a rather high "cap" price charge that cannot be exceeded during the heating season; a buyer will pay the daily delivery price during the season but only up to the "capped" price offered and purchased from the supplier, should a spot price exceed it. An insurance policy, also required, costs around $100.00 and is apparently designed to protect the program holder from supplier problems should they occur. At least one of these two suppliers requires a minimum purchase of 500 gallons.

Current pricing one area supplier I checked with is $4.75/gallon, up 10 cents from last week’s price. They hope their price may go down and but no one really knows how it is going to play out this season; until they lock in, they won’t offer a public plan.

I will not make any public recommendation about what to do for the upcoming season as my advice last year was absolutely wrong. The best thing to do is to call your supplier of choice and make your own decision about this whole problem once you hear the options. In any case it will be a much more expensive season to heat your home.

© 2008 R. Leech features