Some Who Locked In a Price for Heating Oil Now Wish They Hadn’t

[GigiBowman]

My feeling is that when people locked in they were gambling. Most felt they were lucky and bragged that they locked in at $3.99 or $4.29 (and I was jealouse because I had not locked in and my first oil delivery in June was $4.99). SO now.....they are angry because they see the price went down...and they want out of their contracts.


Some Who Locked In a Price for Heating Oil Now Wish They Hadn’t

By KEN BELSON
Published: October 22, 2008

After the rapid run-up in oil and gas prices over the past two years, many consumers have been happy to see them subside in recent weeks.

But then there are those who tried to outsmart the market by signing contracts this summer — when prices peaked — locking in rates for delivering home heating oil through the winter. They will most likely end up paying more than their neighbors to heat their homes and apartments this winter.

Barbara Daley, who is 76 and lives on Long Island, signed up in September at $4.22 a gallon. Now, with prices around $3.10, she is looking for a little sympathy. Mrs. Daley said her heating oil company, which she did not want to antagonize by naming, told her it would cost $599 to terminate the contract — about what she paid to fill up her 250-gallon tank one time last winter.

“They said it might go up to $6, so I
continued: http://www.nytimes.com/2008/10/23/nyregion/23fuel.html

 

[Gunny]

My feeling is that when people locked in they were gambling. Most felt they were lucky and bragged that they locked in at $3.99 or $4.29 (and I was jealouse because I had not locked in and my first oil delivery in June was $4.99). SO now.....they are angry because they see the price went down...and they want out of their contracts.


Some Who Locked In a Price for Heating Oil Now Wish They Hadn’t

By KEN BELSON
Published: October 22, 2008

After the rapid run-up in oil and gas prices over the past two years, many consumers have been happy to see them subside in recent weeks.

But then there are those who tried to outsmart the market by signing contracts this summer — when prices peaked — locking in rates for delivering home heating oil through the winter. They will most likely end up paying more than their neighbors to heat their homes and apartments this winter.

Barbara Daley, who is 76 and lives on Long Island, signed up in September at $4.22 a gallon. Now, with prices around $3.10, she is looking for a little sympathy. Mrs. Daley said her heating oil company, which she did not want to antagonize by naming, told her it would cost $599 to terminate the contract — about what she paid to fill up her 250-gallon tank one time last winter.

“They said it might go up to $6, so I
continued: http://www.nytimes.com/2008/10/23/nyregion/23fuel.html

You might want to explain to us dummies the method of purchasing oil you use. We have gas and or electric heat here, and both are metered for actual use. The companies raise the prices whenever they can get away with it, but there is no advance purchasing.

 

[Luissa]

You might want to explain to us dummies the method of purchasing oil you use. We have gas and or electric heat here, and both are metered for actual use. The companies raise the prices whenever they can get away with it, but there is no advance purchasing.

We also kind of the same method for gas where I live, you average what you pay each month and that is what you pay for the year! I know if you get Oil it is somewhat the same thing, we have a company and if you sign a contract your price doesn't go up or down. Also at this company they also have gas station and it is the same sort of thing, they lock you into a set price. It was helpful about a year ago but only fleets usually used the gas stations.

 

[GigiBowman]

Basically you get an oil delivery when you run out of oil...but then there is that thing called the "service contract" and you get to call them when your boiler or burner need looking at. This caused people to get contracts with one particular company rather than buy from companies on an as-u-need-it basis.....some people do that. They shop around each time. And some people like the idea of having one oil company do their service and trust them that they won't rip you off on oil.

The oil companies will sometimes give you a "locked-in" price if you sign up with them exclusively. It might be a set price or it might be a few pennies below the going price or whatever kind of contract you sign up for. Well a lot of people got "locked-in" prices this summer and the got bragging rights too. My particular oil company who I have a service contract with and whom charges me a certain amount each month called a "budget", did NOT let me lock in at a price. So my first oil delivery made me shiver but I only needed a half of a tank. I paid $4.99. Insane, I know..... Some had locked in at $4.00 or a little higher and some even went below $4.00.....

But now that oil is going down......these people are pissed that their rate is ABOVE the going rate.....

but I say too bad! They based their supply on your price...and they were going to lose if the price went higher....but now...the price went lower...and all these people are crying.....they go from bragging to crying.....

 

[Gunny]

We also kind of the same method for gas where I live, you average what you pay each month and that is what you pay for the year! I know if you get Oil it is somewhat the same thing, we have a company and if you sign a contract your price doesn't go up or down. Also at this company they also have gas station and it is the same sort of thing, they lock you into a set price. It was helpful about a year ago but only fleets usually used the gas stations.

We pay by the month.

 

[Gunny]

Basically you get an oil delivery when you run out of oil...but then there is that thing called the "service contract" and you get to call them when your boiler or burner need looking at. This caused people to get contracts with one particular company rather than buy from companies on an as-u-need-it basis.....some people do that. They shop around each time. And some people like the idea of having one oil company do their service and trust them that they won't rip you off on oil.

The oil companies will sometimes give you a "locked-in" price if you sign up with them exclusively. It might be a set price or it might be a few pennies below the going price or whatever kind of contract you sign up for. Well a lot of people got "locked-in" prices this summer and the got bragging rights too. My particular oil company who I have a service contract with and whom charges me a certain amount each month called a "budget", did NOT let me lock in at a price. So my first oil delivery made me shiver but I only needed a half of a tank. I paid $4.99. Insane, I know..... Some had locked in at $4.00 or a little higher and some even went below $4.00.....

But now that oil is going down......these people are pissed that their rate is ABOVE the going rate.....

but I say too bad! They based their supply on your price...and they were going to lose if the price went higher....but now...the price went lower...and all these people are crying.....they go from bragging to crying.....

Y'all must have a different method of heating than we do. Only thing we put oil in is the car and truck.

 

[Luissa]

We pay by the month.

They started it a few years ago when energy prices went up! Which I didn't get why here because we have hydrogen power but I guess we sale a lot of it to California!