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Propane and Heating Oil Downside Protection: Reasons For and Against

Adding downside protection to your fixed price heating oil or propane purchase may be a good investment this year.  When you add downside protection to your fixed price, you pay no more than the fixed price, but if the price of fuel drops, you pay the lower price. Think back to June 2008, Wall Street was melting down, crude oil was in the stratosphere and everyone was fearful that home heating oil prices were headed to $6.00 per gallon. Many consumers purchased fixed price heating oil contracts at $4.50 per gallon in the summer of 2008 only to have the price drop below $3.00 per gallon during the winter. Those who purchased downside protection were able to pay the $3.00 per gallon, while those who didn’t paid $4.50 per gallon – their contracted fixed price.

 

Reasons to Sign UpReasons Not to Sign Up
• Heating oil prices could easily go up or down
• You want to benefit from lower prices should prices go lower
• Benefiting from lower prices should they go down outweighs the price of the downside protection fee
• You aren’t willing to pay the extra fee for downside protection
• The price of heating oil or propane would need to fall by more than the added cost of downside protection for you to benefit
• You aren’t worried about where heating oil and propane prices are headed
• You are OK with having a fixed price that won’t go lower should heating oil or propane prices drop

Whatever you decide, Irving Energy encourages you to have all the facts and weigh the benefits so you can make a decision that’s right for you. Take comfort in knowing that Irving will provide you with the resources and information you need to make the best possible decision this heating season. If you have any questions and want to talk to a knowledgeable Irving representative, feel free to give us a call at 1.888.310.1924. We’re here to help.

 

View our heating oil and propane price protection plan and payment options. And, check out our other articles on price protection or answer the question: is heating oil and propane price protection right for me?

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Propane and Heating Oil Fixed Pricing: Reasons for and Against

When you fix your heating oil or propane price, your per gallon fuel price is locked in until a specified date in your contract or until you have consumed the gallons purchased in your contract. No matter where fuel prices go, your price remains the same.

What are the reasons for and against heating oil and propane fixed pricing this year?

 

 

Reasons to Sign UpReasons Not to Sign Up
• Uncertainty in heating oil and propane prices
• You don’t want to gamble with you home finances
• You don’t want to risk the price of heating oil or propane increasing
• You want the peace of mind of knowing exactly what you’ll pay for home heating
• Knowing your fuel price makes it easier for you to budget
• You don’t want to lose out if the price of heating oil or propane drops, and get stuck paying a higher price
• Although no one knows where prices are headed, they can certainly drop throughout the heating season
• You would prefer to see what happens with the price of heating oil or propane rather than locking in a set price
• You don’t want to sign a legal contract for price protection

Whatever you decide, Irving Energy encourages you to have all the facts and weigh the benefits so you can make a decision that’s right for you. Take comfort in knowing that Irving will provide you with the resources and information you need to make the best possible decision this heating season. If you have any questions and want to talk to a knowledgeable Irving representative, feel free to give us a call at 1.888.310.1924. We’re here to help.

 

View our heating oil and propane price protection plan and payment options. And, check out our other articles on price protection or answer the question: is heating oil and propane price protection right for me?

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Propane and Heating Oil Variable (Market) Pricing: Reasons for and Against

When you choose to pay a variable price for your heating oil and propane, the price you pay is the price per gallon at the day of your delivery. Heating oil and propane prices fluctuate up and down daily because of many market factors. What are the reasons for and against choosing to pay a variable price?

 

Reasons to Go VariableReasons Not to Go Variable
• You don’t want to pay for the additional costs with fixed pricing or downside protection
• You don’t want to sign a legal contract
• Heating oil and propane prices are unpredictable, and you don’t want to make any commitments since prices might drop
• Knowing exactly the price you’ll pay for fuel is not very important to you

• You want to know exactly what you'll pay per gallon in heating fuel
• You want to know your fuel cost so you can budget
• You’re uncomfortable with not knowing how much your next heating oil or propane delivery will cost

Whatever you decide, Irving Energy encourages you to have all the facts and weigh the benefits so you can make a decision that’s right for you. Take comfort in knowing that Irving will provide you with the resources and information you need to make the best possible decision this heating season. If you have any questions and want to talk to a knowledgeable Irving representative, feel free to give us a call at 1.888.310.1924. We’re here to help.

 

View our heating oil and propane price protection plan and payment options. And, check out our other articles on price protection or answer the question: is heating oil and propane price protection right for me?

Leave a comment