Heating your home can be extremely expensive. That is why you need to make sure you attempt to secure a great price for your heating oil. When it comes to securing a great price for your heating oil, there are three types of payment plans: pre-buy, market price and locked-in. You need to understand how these three different payment systems work and then figure out what system is best for you.
Pre-Buy
One option you have is to pre-buy all the oil that you need for the winter. When you pre-buy, you literally purchase all the oil you will need for the winter all at once. You will make one big upfront payment for the oil you need.
When you pre-buy, you are going to be paying based on the market rate for the oil on the day that you purchase the oil. Depending on how the oil delivery works, you may need to accept delivery for all the oil at once. However, most heating oil providers will allow you to get delivery of the oil throughout the winter; after all, you already paid for the oil.
Market Price
Next, you can enter into an agreement to pay the market price for the oil that you purchase. When you agree to pay the market price, that means that each day you have the oil delivered, you will pay the market price on that day. That means that the price may and will more than likely change over time. The price may go up and down over time, and you will need to be able to afford the oil at whatever price it is on the day that it is delivered.
Locked-In
Next, you can lock-in a price. With a locked-in contract, there are two different ways the pricing works. First, you can lock-in the oil at a fixed rate. That means that you will pay a set rate for the oil for the length of the market. It doesn't matter if the market prices change, you are locked in to that prick.
Another type of lock-in contract allows you to have a capped price contract. With a capped price contract, there is a max price set that you will pay for the oil. You will pay the max price for the oil. If the market price rises above the capped price, you will not have to pay the difference. However, if the oil price drops, you will get a refund for the difference you paid between the market price and either the capped price or market price at that time.
When it comes to heating your home at an affordable rate, you need to determine which price structure works best. For more information, contact a heating oil company in your area.
Share4 September 2019
Hello, my name is Candace Hunt. Welcome to my site about safety equipment used in the industrial field. Equipment operators must pay close attention to safety while operating industrial machinery. The safety techniques and tools used in this industry are purpose-built and designed to protect workers doing a specific job. I will cover the different types of safety equipment and the correct ways to utilize the supplies. My site will help you understand how employees stay safe while operating large machinery. Please feel free to visit my site daily to learn all you can about these industrial safety supplies. Thank you.