Even though it might be nice and warm outside right now, it won't be long before you have to worry about turning on the heat to stay warm inside of your home. If you are someone who is looking into different heating oil payment plans to gear up for the upcoming heating season, there are a few different options available to you. Take some time and go through the options below to determine which one is going to work the best for you and your needs.
Fixed Price Plans
A fixed price plan ensures your price per gallon is going to stay the same throughout the duration of your contract with the oil provider. A professional heating oil company, like Peterson Oil, calculates a price based on the expected prices for the upcoming heating season. If they quote you a price of $5 per gallon, you will never have to worry about paying more than $5 per gallon for the length of your contract. This ensures you never have to worry about your bill jumping to an extreme price.
With this particular plan, you will be paying whatever the market price is for the fuel up to a certain dollar amount. If your cap is set at $5 per gallon and the market rate goes up to $6 per gallon, you will still only pay $5 per gallon. When the market rates drop below your cap, you get the cheaper prices. You never have to worry about paying more than what your cap is set at, but you also get to take advantage of the lower pricing when rates decline.
With a pre-purchase plan, you are paying for your cost of heating your home for the winter all at one time. You don't have to worry about paying a bill every month. You simply write out one check for the entire winter and that's it. However, paying for the heat for the entire season could wind up costing you a pretty penny all at once, depending on what the market rate happens to be at that time.
Only you can determine what payment plan is going to work the best for you and your home. Spend some time weighing the options before making a final decision and choosing a plan. Discuss the different benefits of all the plans with the provider to come up with a solution that fits your pocketbook.