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View Full Version : OUCH! Pre-Pay Heating Oil Contract $2.78/gal & MA Energy Consumers Alliance question


HelloChum
07-11-2006, 08:54 PM
Just received our oil contract in the mail today...YIKES!! Normally we pre-pay our home heating oil...about 1100 gallons to lock in the price for the winter. Last year we paid about $2.38/gallon...but $2.78 kind of stings!!

What do most people do...pre-pay to lock in their price or pay on delivery and take your chances that hopefully prices go down? I thought I heard or read there may be a good chance the oil price may be heading down...but that could change in an instant :confused3

Also, any DISers in MA know of Mass Energy Consumers Alliance heating oil program? It seems to be a "club" for lack of a better term...where you pay a membership fee of $15 and they hook you up with a oil company at a discount delivery rate. The historic prices look better than what we paid in the past. Though when we've been happy with our oil company for the past 12 years, it can be hard to change...especially if we aren't sure what we're changing to...hmmm

Any thoughts anyone? We'd hate to lock in at $2.78 but then again we'd hate to be kicking ourselves in February if the prices are even higher!! What to do...what to do!!

Thanks,
HelloChum

jeankeri
07-11-2006, 09:11 PM
Our pre-pay was $2.79, but the company I go through will give you the lower rate if prices go down over the season. If your fuel co doesn't do this, call around. Maybe another does.

mjbaby
07-11-2006, 09:26 PM
We had great pricing last year with a company that included biodiesel in their blend. In addition to calling around for price protection, you might want to look into some of the alterna-fuel vendors - we're very pleased that we did!

HelloChum
07-12-2006, 07:35 AM
JeanKeri...did you have to pay a fee for price protection? We will have to pay $100...last year we paid $75 and it never ended up being cheaper at the time of our delivery...so, we never realized any extra savings.

I am very curious if any one out there has used Mass Energy Consumers Alliance heating oil program...I'd love to hear about their experience.

Thanks,
HelloChum

mudnuri
07-12-2006, 07:39 AM
Realistically- do you think the price is going to go down? I mean, more than the $100 your going to pay to get that benefit?

I don't think it is- and just did the pre-buy for 700 gallons. It was .04 more than last years IRC, and i dont bother with the 'pay me 100 and if it goes down we'll lower your price'...its not going to go down lol...

Brandy

HelloChum
07-12-2006, 11:11 AM
Last year we were hopeful the price would go down and plunked down the $75....and while at times during the season the price was cheaper than our contract price....for some reason, it was never cheaper on the DAY of our delivery...hmmm....we pretty much now feel like it was just an extra $75 we paid for nothing!! So, no we are not inclined to pay the $100...

It is interesting though...and I have no clue as to the economics of the oil industry....that the current prices in our area are now about $2.55 (if I had the oil delivered today and paid cash)...yet, to lock in for the upcoming year the price is $2.78 when the prices have not even hit that target in our area yet...I guess that is what the company will have to pay its supplier for the upcoming season...just have to shop around....

thanks

jeankeri
07-12-2006, 02:13 PM
Ours was a pre-buy with a 500 gal minimum. We pre-buy 750 gallons. There's no fee to be paid, just purchasing up front.

juliegirl
07-12-2006, 06:33 PM
Customer loyalty goes a long way at 2am when your furnace breaks down...

If your oil dealer also services furnaces, I would rather be on the 'customer for 12 yr list" than the "brand new, shops for pricing" customer list when I need a repair.