Should I Lock In Heating Oil Price?

Many oil heat users ask “Should I Lock In Heating Oil Price?”. However, if a lock-in heating oil price seems too good to be true, it probably is. History proves they are a gamble.  In today’s post, we unlock the facts you need to select the best heating oil price strategy for your family and budget.

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Should I Lock In Heating Oil Price?

In this article, we discuss some factors to consider when deciding whether or not a lock-in heating oil price is right for you.

Your 3 Main Heating Oil Pricing Options:

  1. Market heating oil price:  your heating oil costs fluctuate with the market.
  2. Lock-in heating oil price: your heating oil price is fixed for an entire season, regardless of the market price.
  3. Capped heating oil price:  your heating oil price fluctuates with the market but will not exceed your protected capped price.

Often heating oil consumers are only aware of options 1 and 2.  But Tevis Energy gives consumers a third option — a capped heating oil price.  The capped price option offers you the very best of the two other options – protection and flexibility.

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How is Capped Heating Oil Price Different Than a Locked Price?

lock and chains depicting heating oil price planWhen you join a capped-price program, there are no unpleasant surprises about fuel costs. You will never pay more per gallon than the capped heating oil price you sign up for.  If the prices rise above your capped price, you will still pay the capped price. If the market price is lower than your capped price at the time of delivery, you will pay the lower price. Having a capped price is a win-win.  Why? Because no matter how the market fluctuates, you always pay the lower of the two prices. This knowledge helps you budget fuel costs and gives you peace of mind.

A lock-in heating oil price is similar to a capped price in that you will not pay more than the price you are locked into for the season. But with the locked-in price, you will never pay less than your lock-in price either.  With a heating oil lock-in rate, if the daily market price goes down, your locked-in price does not. Even if market prices fall, like they have been known to do, you will be stuck with a high locked price for the rest of the season.

 

Beware of Contracts and Cancellation Fees

Lock-in heating oil rates also come with contracts and cancellation fees. If for any reason the contract is broken due to poor service or a bad pricing deal, the customer has to still pay the fee, which can be $300 or more.  For this reason, Tevis Energy does not offer a locked-in heating oil price, and recommends that consumers avoid them!  In fact, Tevis Energy does not require any contract to receive fuel oil service.  We trust our customers to do what’s best for them; and in turn, we work hard to earn the privilege of their continued trust in us.

History Shows Lock-In Heating Oil Prices are a Bad Bet in Most Markets

We found these articles that recap the reasons why consumers should avoid lock-in heating oil prices.

 

Additional Ways Tevis Energy Customers Save Money and Budget Fuel Costs

image of a homeowner saving money due to heating oil capped price plan

No one knows what winter has in store in terms of the weather and heating oil prices.  At Tevis Energy, our advice to customers is the same each year.

  • TLC Price Protection – Very simply, this is the name of our capped oil price program described above.  While savings are never guaranteed, Price Protection may be a good choice if you are concerned that heating oil prices will rise and stay high in the coming season.  Learn more about TLC Price Protection.
  • Monthly Payment Option – Instead of paying per delivery, most customers prefer our monthly payment option. This method of payment eliminates high delivery bills and spreads your estimated fuel costs into lower monthly payments. Your monthly payment can be customized to your preferences.  We also pay you 1% interest on the credit balances you accumulate during the season. Enrollment is completely free.  Learn more about our Monthly Payment Option.
  • Customer Referrals – One of the best ways to lower your heating cost remains our customer referral program. When someone you refer becomes a new automatic delivery oil or propane customer (250-gallon tank or larger) you and they will each receive a $50 account credit!  Learn about our Referral Program.
  • Conservation – Easier said than done, but we always suggest customers do whatever they can to reduce the amount of heating oil they use.  In most homes, turning the thermostat down a degree or two for an 8-hour period can help reduce energy consumption by 3%.

Our family-owned company is honored to be the heating oil supplier of choice for thousands of families in Maryland and Pennsylvania. We are proud that they put their trust in Tevis Energy to keep their homes comfortable all year long!

Call Tevis Energy For Your Home Heating Oil Requirements

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Tevis Energy is a trustworthy heating oil delivery company that services central Maryland and southern Pennsylvania. Our company offers affordable and the most competitive heating oil prices in the area. Our goal is to provide you with excellent products and services. When you choose us to be your oil supplier, you can rest easy knowing that you will have correct and prompt heating oil deliveries at the best possible prices. Furthermore, we offer various heating oil delivery plans and financing options, as a way to customize your oil deliveries. Be sure to call us today to learn more.

Tevis Energy has certified and highly trained HVAC technicians to cater to all your heating and cooling needs. We guarantee that each of our techs has the experience, skills, and knowledge to provide excellent HVAC services. Our team can assist you with installations, repairs, maintenance, and much more. Our superior HVAC solutions always come at affordable costs and we back all of our work with a guarantee.

Call us today to learn more about the products and services our company offers. We provide free, in-home estimates.

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