Home Heating Oil.........????

[momrek06]

I locked in @ $4.65 in July for this winter. I have locked in every year with the same oil company since 2005 when we built the house. (275 gallon tank.) Last year we locked in @ $2.45 and we did very well as the price just went up, up, up!!! So now I am thinking (July) with how bad this economy is I better once again lock in and I did @ $4.65! I have paid $1200.00 (as it was required to mail that with the lock in rate) and I think they want another $1500.00! In years past, if I did not use all the money I had paid they credited my account for the next year. (I think if I had wanted a refund they would have given it to me.)

TODAY the rate is $3.65 I called my oil company and they said there is nothing they can do for me. It is what it is.

I called another oil company in town and they said that indeed TODAY it is $3.65 and that on Monday they will be at $3.45 and if I wanted to lock in and prepay it was be $3.35. (That is $1.30 LESS than I am locked in at x 275 gallons = $357.50 SAVINGS)!!!

I told this woman at this oil company that I had a lock in price of $4.65 with someone else and I could save allot if I went with them. She agreed. She said all I do is call back on Monday when the rate is @$3.45 and order the oil. They do NOT do one time deliveries. I would need to set up an account with them.

WHAT DO YOU ALL THINK I SHOULD DO? Leave it alone or go with the new company?

Is anyone else shopping around for oil after LOCKING IN?

 

[mickeyboat]

Find out if the old company has any penalties if you don't use the amount you budgeted for. If the penalty is less than your savings, and the new company will not require you to change tanks at your expense (or charge you inspection fees, etc.) then I would switch.

Also make sure you are comparing apples to apples on the price. Is there a delivery fee with the new company?

Finally, is your deposit with the old company refundable? It would not make sense to switch if it is not.

We debated for a long time about locking in, and decided not to. We topped off our tanks at a high cash price (worried that it might go higher), installed a chimney and bought two wood stoves and 6 cord of wood. We did spend a lot of cash, but I think it will pay off in the long run - both in $ and in worry.

Good luck.

Denae

 

[momrek06]

Find out if the old company has any penalties if you don't use the amount you budgeted for. If the penalty is less than your savings, and the new company will not require you to change tanks at your expense (or charge you inspection fees, etc.) then I would switch.

Also make sure you are comparing apples to apples on the price. Is there a delivery fee with the new company?

Finally, is your deposit with the old company refundable? It would not make sense to switch if it is not.

We debated for a long time about locking in, and decided not to. We topped off our tanks at a high cash price (worried that it might go higher), installed a chimney and bought two wood stoves and 6 cord of wood. We did spend a lot of cash, but I think it will pay off in the long run - both in $ and in worry.

Good luck.

Denae

We live in CA and own a home in MA and I am going to have to ask my DS in MA to forward the oil company's contract to me so I can make sure I can actually do this.....huge savings but at what cost to me!!!

 

[beattyfamily]

I live in MA and today the going rate for oil (cash on delivery price) is $2.82. That's a lot less than I paid the beginning of August.

I'd definitely shop around.

 

[DarthKTrava]

I got in 200 gallons at $3.59. That doesn't include the tax of around 31 cents per gallon. I was expecting alot worse because of the whole gas crisis that NC has been in for 3 weeks now.

As far as I know, we don't have "lock in" rates here in NC. When we've needed oil, we've just called them and ordered some delivered. Most have at least a 50-100 gallon minimum order.

We'd been using the same oil company for the past 15 years or so. Last year, they changed ownership and when we went to call this year, there was no answer or "number not in use" when Mom called. So we had to find someone new....

 

[DarthKTrava]

I got in 200 gallons at $3.59. That doesn't include the tax of around 31 cents per gallon. I was expecting alot worse because of the whole gas crisis that NC has been in for 3 weeks now.

As far as I know, we don't have "lock in" rates here in NC. When we've needed oil, we've just called them and ordered some delivered. Most have at least a 50-100 gallon minimum order.

We'd been using the same oil company for the past 15 years or so. Last year, they changed ownership and when we went to call this year, there was no answer or "number not in use" when Mom called. So we had to find someone new....

 

[Par8hed]

I went with the cap and my wife thought I was an idiot (which basically I am...but not in this case.....AS OF TODAY....it could change momentarily). Legally...you've got nothing.

 

[Mandychelle79]

When I had a locked in price they couldnt charge me more than what it was being offered to the general public ( ie, I was locked in at 1.50, its been awhile since I was able to get a lock in rate, but if fuel was less than 1.50 I got it for less, but 1.50 was the most they could charge me). However, we had to replace our furnace this year so we switched to electric. We figure out electric bill has to go up almost 500 a month not to make it worth it.

 

[Melrosgirl]

We used to have oil heat. That happened to us a few years ago. We locked in and it went down. DH was able to sweet talk them into lowering the price, but legally they didn't have to. These companies pay for their oil in advance and that's what they paid (or something like that). My guess is in the contact, they don't have to let you out of it. It's a risk you take.

Glad to see it's going down though now! I'm soooo glad we sold that house when we did.

 

[momrek06]

When I had a locked in price they couldnt charge me more than what it was being offered to the general public ( ie, I was locked in at 1.50, its been awhile since I was able to get a lock in rate, but if fuel was less than 1.50 I got it for less, but 1.50 was the most they could charge me). However, we had to replace our furnace this year so we switched to electric. We figure out electric bill has to go up almost 500 a month not to make it worth it.

ohhh...good luck to you with the electric because our home prior to building this home in 2005 was all electric....and the bill was hence our going with oil heat. Maybe it has changed in 3 years but I know our combo oil bill and electric bill now is LESS than my house that was all electric.