Ways to Avoid Paying High Heating Oil Prices in Mystic CT

Heating Oil Prices in Mystic CT typically are lowest during the summertime. Homeowners have an advantage if they can lock in a maximum price for the season’s heating oil by paying for all of it at once, but not everyone can afford this. The next-best option usually is to sign a keep-fill contract and have the tank filled in late summer at the going rate.

The keep-fill contract doesn’t lock in a maximum price, but it provides a discount over calling for fuel as needed. That’s because an organization such as Andersen Oil Company can streamline their service by developing their own routes for delivery. Every time they need to send a driver off that route for a one-time delivery, it is less convenient and more costly for the supplier. Homeowners who are interested in learning more about payment and service options may click here for more details. Some companies offer budget arrangements so customers can make monthly payments over 10 months instead of paying the full amount due at every delivery.

When deciding on a heating oil supplier, it’s important to ask questions about pre-buy, pre-pay and keep-fill contract options. Companies have different policies with these options in regard to Heating Oil Prices in Mystic CT. Homeowners shouldn’t have to pay a higher pre-buy price than the current rate, for instance, in the unlikely event that prices actually drop over the winter. Those prices that are determined up front should ideally set a maximum instead of a constant pay rate no matter what oil prices do. This is often called a price protection or price ceiling program.

When a customer pays for a season’s heat before the season even begins, that is a substantial advantage for the fuel supplier. The company has the money and doesn’t need to worry about the customer defaulting. During the season, many deliveries are provided on a credit basis and there is no actual guarantee the company will be paid. In addition, the supplier can earn interest on the money it has been paid during late summer. Customers justifiably expect a discount when they buy so much fuel before they ever need it.

Be the first to like.

Shares