OIL CONTRACTS - 2009/2010

05.28.09

Lo and behold, a 2009/2010 fuel oil program arrived in my mail last week. Very early I might say, and it may be too early for me to make any suggestion to you, the reader, about what to do.

The program offered include a Fixed Price plan or a Cap Price program. Both require pre-payment at the time the Contract is agreed to and signed for. The price for each is $2.55 per gallon, however there is an additional 33 cents per gallon charge for Downside Protection. If the price drops below $2.55 you get that day’s price, however you have paid for it in advance. Actually, unless it drops more than 33 cents per gallon or below @2.22/gallon, you won't actually save any (additional) money.

There is an "end date" to the program but you get rollover credits if you have not used you purchase allotment by 4/30/2010.

The plans are getting more "sophisticated" from our local oil dealers; they too can get caught in the price fluctuations and the current proposal is only good until they sell out whatever amount they have "locked" into to offer the above to you. This one came from Lindell Fuels.

While it is very early for any plan to surface, this one has and any of you who receive it, will need a crystal ball to figure out whether or not to "grab" this one right now. I have no clue what to suggest.

©2009 R. Leech features.