Heating costs are always a burden for everyone during the late fall and winter seasons. At home, you do whatever you can just to be able to save on your expenses especially if you are using home heating oil. One of those things you can easily do is setting the thermostat back when you’re out. Even just a couple of hours of doing that will reap some benefits.
If you live in the Northeast, the cost of heating oil can be quite worrisome for your budget. In most instances, the higher the oil prices become, the lesser discretionary income gets. Well in fact, many Americans are almost living within the poverty line and the main reason is because a bit over 15% of their annual income is spent on energy costs.
Yes, it may be true that there’s no way for you to dictate or control heating oil prices, there’s actually a bunch of things you can do in order to at least pay a lower price for it. One of those things is identifying the best payment plan when you purchase heating oil.
1. Locked in (Fixed or Capped) – In a locked-in pricing type, a specific price per gallon can be purchased either by fixed rate or capped for a year. A fixed rate means the price will not be going up or down. A price cap on the other hand sets the highest price that you’ll pay. But if the market prices go down, you are also going to pay that low price. The good thing about this payment plan is that it has the potential of giving a win-win situation for the heating oil delivery company and the customer. The company will guarantee the customer’s purchase for one year while the customer gets home heating oil in a lower price compared to market pricing.
2. Market Pricing – Market pricing on the other hand means you pay the market price for local heating oil. The greatest advantage is that there will be no contract involved. You are just going to pay based on the current market rate on the exact day of the delivery of home heating oil. And because heating oil prices have the tendency to go up and down, you put your budget at the mercy of the fluctuating price.
3. Pre-Buy – If you choose to pre-purchase your heating oil, you are required to pay preseason for the total estimated usage for the entirety of the winter season. So when heating oil prices rise during the winter, you win. But if they go down, you lose. But the best thing about this payment plan is that you get the security of having heating oil available for you especially when all others are scrambling for deliveries because of the high demand in the winter.
Doing Your Part
If you really want to save up to home heating oil prices, the best thing you can do at the moment is make some effort in learning the pros and cons of the different payment plans. You can go online and read articles or call a reliable home heating oil delivery company to give you more information.