HEATING OIL - WIDE PRICE RANGE

07.24.08

If you are concerned about heating oil pricing read on.

Taylor Oil has a pre-buy price package that is creative, protective, and currently, in my opinion, excessive. And, should you buy their insurance surcharge supplement, it gets crazy. Their plan currently calls for $5.09 per gallon pre-paid for the amount you need for the winter, until they have sold all of their available stock at that price - 420,000 gallons. There are alternatives payment schedules/costs as well. However, if you want to protect against price DECREASES, you have to pay an additional 42 cents a gallon to get the lower price - if available later on! Do the math, avoid the surcharge, at least right now, if you pre-buy the Taylor Oil package.

As this is written on Monday, two local CT corner firms have oil at $4.42 gallon and $4.65 per gallon, both well below Taylor’s current lock-in price. However, neither firm currently has a pre-buy plan available. They prefer to wait until a later date to see if they can get a lower lock-in rate at the wholesale level, at which point either or both might offer a plan, or not.

If oil quality is of concern, Taylor Oil’s offer is for #2 heating oil - a good quality; Most reputable firms deliver that same grade, but if you call around, check what type of oil they supply.

Concluding, I would do the following it you are reading this. Check with your supplier, frequently. If their price is at or around $4.70 per gallon, fill your tank(s), RIGHT now. If a lock-in rate plan is available get all the details and make an informed decision for the coming season. Try and lock in at any plan that might offer you a price below the one available above. To me, it appears that Taylor may have bought their (initial) 420,000 gallon supply at quite a high wholesale price, and are trying to sell it out at the rate noted above. However there are cheaper plans available as this goes to print.

©2008 R. Leech features.