Should I Pre Buy Home Heating Oil

[Jake]

I live in New York, and seriously think of pre buying my heating oil for 2014-2015 winter. My choices are to lock in at $3.79. Or pay TOTALLY up front, sending a check today for oil I will be using at $3.499 per gallon. This is a big company not worried that they will go out of business. Are also giving 2% interest and free service contract.

 

[laurafergie]

I just bought propane via contract. 1.89 a gal vs 5.29 last January when we ran out. I would at least lock in your price if you don't want to prepay.

 

[cdtommie]

I prepaid back in mid July at $3.59 in CT. I think the price has come down but I can live with this (last year the price was $3.49 and their market price on the delivery ticket for the last fill in March was $3.99). Some years I have prepaid and got burned, others like last year worked out...all we need is one new escalation in the Middle East for the speculators to drive prices up...for $3.49 I would go for it.

 

[OKW Lover]

When you buy into one of these contracts you are betting that you know the oil market better than the supplier does.

 

[luvmarypoppins]

The Farmers Almanac is predicting a colder and snowier winter in the Northeast I think.

They said they are accurate 80% of the time.

 

[scrapquitler]

I never do. One of my friends pre-bought about $4000 worth of oil last year, and the company which was well regarded in the community for like 50 years folded, and she lost all her money.

 

[North of Mouse]

My sister in AR always prepays, and have always come out ahead. Propane notoriously goes 'up' in the winter and last winter it went out of sight. That's what they heat with. We have electric - would like to have natural gas.

 

[pat fan]

When we used oil, we always pre-bought. I know a couple years ago folks around here got burned by a price drop, but generally I think you either make out better or at least break even. At that price, I would do it if I used oil.

 

[seasheller]

We always pre-buy our propane (since 2001 when we moved here). Just paid it for the coming winter at 1.78/gallon. Last year we ran short to the tune of $14.58 @ $4 plus per gallon so we estimate pretty close. Usually we over pay, but they apply the credit to the next year.

 

[heartsy77]

We use the budget and we get the prepaid amount of 3.59 for fuel oil. Last year our budget was 140. a month this year it is $190. I had them raise because we had more baseboard installed in our finished basement and removed the pellet stove. I still don't think $2,280 a year is bad for heat and hot water ( baseboard heat and hot water) for 2800 sq for house in upstate NY!

If I was you I would pre-pay if you can!

 

[4shinystars]

We always prepay in full for our propane. This year it was $2.58/gal . We can only purchase 90% of what we used the previous year, and even with getting them to let us buy an extra 50 gal, we still ran out with our last fill and had to buy some at almost $5/gal. This year we got them to sell us what we used last year.
I would at least lock in the price. Odds are in your favor that the price will not drop so drastically.

 

[pk1959]

We always prepay in full for our propane. This year it was $2.58/gal . We can only purchase 90% of what we used the previous year, and even with getting them to let us buy an extra 50 gal, we still ran out with our last fill and had to buy some at almost $5/gal. This year we got them to sell us what we used last year.
I would at least lock in the price. Odds are in your favor that the price will not drop so drastically.

I thought ours was bad at $2.15 a gallon for this year. Yours is even worse. Weird thing is that they started a budget plan where we can pay year around, once per month OR we could prepay for the entire season upfront, with the same exact price per gallon. Don't really know why anyone would send them a big fat check upfront when they can just pay a little every month, but with no price difference, we took the budget plan.