Pre-buy Heating Fuel?

Parent Cafe
1

<p>Seems crazy to be thinking about this in July, but here in New Hampshire winter is right around the corner! I’m wondering if any of the CC mavens pre-buy.</p>

<p>I’ve always done “pay as you go” which means I bear the burden of mid-winter price hikes and pay a huge bill every time they deliver my propane. The gas company is offering two options. Straight pre-buy, meaning I pay for 500 gallons up front at $3.11/gallon. Or I can go on the Price Protection Plan. I would be set up to pay for the 500 gallons at the same price over the 6 month heating season, but if the price of propane is lower than 3.11, I would pay the lower market price. This plan costs about .20/gallon ($100) because they buy insurance on the price protection. </p>

<p>As a reference, I paid between 2.92 and 3.62 per gallon last winter. I’m thinking the Protection Plan is the way to go. It would be nice to not have huge bills and instead pay by spreading them them out.</p>

<p>Any thoughts?</p>

2

<p>So one way you pay $3.11/gallon, guaranteed, and the other way you pay $3.31/gallon but if the price goes below $3.11/gallon, you might get some money back? You’d have to pay for half of the oil at $2.91 for that to work out as $$ savings, if my math is correct. If you can pay upfront, I’d go with that–it’s not like the banks are giving any interest on savings these days.</p>

3

<p>Good point dmd. But there were times last year I paid $2.92 and $2.72/gallon. If I pre buy I’m stuck paying 3.11</p>

4

<p>You found heating oil for $2.72 last winter? Ours was $3.59,9.</p>

<p>OOPS…ETA…mine is fuel OIL, not propane!</p>

<p>I just prepaid for 1000 gallons for the coming winter at $3.70. It’s a crap shoot…but I don’t like getting those Billie every month.</p>

5

<p>$2.72 for propane last June. In December it was $3.33 and March $3.62. I will probably use 1000 gallons but they limit the prebuy to 500.</p>

6

<p>I’ve been doing the price protection plan, for heating oil, for the last 21 years. There have been many times over the years where the price has gone quite a bit lower then the guaranteed price. Also, if it’s a milder winter and I use less oil, I often end up with a large credit. My plan is a 10 month payment plan but this year, for instance, I only made 8 payments and still had around a $350 to roll over for next year and it was a very cold winter. The credit has reduced my monthly payment from $258/month (last year) to $222. </p>

7

<p>Same as Emilybee ^^^ We’ve be doing the price protection for ages and often see a nice credit at the end of the the payment plan. I’m one who doesn’t like surprises so the price protection really works for me.</p>

8

<p>Is the price of propane tied to any Mideast political unrest or is it only the oil prices? Does propane go up in price if the price of oil rises even though it is a US manufactured gas? If so, I would prebuy.</p>

9

<p>Thanks everyone. I’m going with the price protection plan.</p>