Price Protection Programs —What’s it All About?
Do you know that in the Northeast we use up to 80% of our heating fuel in just four months of the year. There’s not much we can do about that but there are ways to adjust how we pay and even what price we pay for fuel.
Over the last year oil prices fell to historic lows but what’s going to happen next? No one knows for sure but we do know what’s happening right now. Prices have climbed a little but they’re still low. So it may be that buying right now would be a smart move.
At Simply Green we have various fuel-buying programs—Fixed Price Prepaid, Fixed Price Budget, Flex Price Prepaid, Flex Price Budget, Market Budget—but what are they and how might they work for you?
Do you want to pay all at once or spread your payments over several months?
If you want to pay all at once you should choose one of the “prepaid” options—you decide how many gallons you want to buy, we quote you a fixed price based on current prices and you make one total payment, up-front.
If you want to spread the payments, you should choose one of the “budget” options. You still get today’s price but you spread your payment over several monthly installments.
Do you want to lock in your payments to today’s quoted price and never have your payments go either up or down, or do you want a capped rate so that you’ll get a lower price in the event that fuel prices drop?
If you want to lock in your price you would choose a “fixed” program. Then, no matter what happens to oil prices over the coming months, whether they go up or down, your gallons will be locked in at your quoted price.
If you want today’s great rate but would like to benefit if the market price is even lower on the day of delivery you would choose a “flex” program. Sign up at today’s quoted price, but purchase Downside Insurance. Now, if the market price goes up, your price is unaffected. But if market price goes down your price goes down too.
Finally, you can choose not to lock in to a price, but still have a monthly budget. To do this you need to sign up for a Market Budget program. Now, your fuel costs are divided into 12 monthly installments, which you pay regardless of how much (or how little) fuel you use in any given month and then you pay the market price on the day of your delivery.
Fixed Price Prepaid—lock in at today’s price, pay for all your winter fuel up front in one payment
Fixed Price Budget—lock in at today’s price, but spread your payments over several months
Flex Priced Prepaid—lock in at today’s price, pay for all your winter fuel up front in one payment, but get Downside Insurance and benefit if the price goes down
Flex Priced Prepaid—lock in at today’s price, but get Downside Insurance and benefit if the price goes down and spread your payments over several months
Market Budget—pay the market price on the day of delivery but spread your fuel payments over 12 months
Want to know more?
Click here or call our office, Monday through Friday 7:30 am to 4:00 pm at 603.430.9919.
Fuel bills can be scary, but with a little pre-planning you can take the edge off.