Posted: August 13, 2015
For many years now, P.Gagnon & Son has offered our customers insurance against price uncertainty by giving them the choice, if they prefer, to lock in their rate or cap their fuel price for the season. This is our way of offering stability against the unforeseen in a volatile energy market.
Because the fact is, we never know what the market’s going to do, or how world events or extreme weather may affect energy prices of all kinds. Right now, oil prices have hit their lowest point since 2009 and there is a lot of optimism that they may stay stable for quite some time. But nobody can say for certain what will happen next.
That’s why many people prefer to “hedge their bets” with a price protection program. Like any contract, both sides have to fulfill their ends of the bargain. On our end, we promise to provide the fuel to keep you warm all winter, and you promise to pay an agreed upon price.
History has shown that our price cap plan is the safest choice because it provides protection whether prices go up or down. But with that said, please keep in mind that price contracts do not guarantee that you will save money every year. They only guarantee you a certain level of price certainty.
Through our experience, we have found that in about 7 out of 10 years in an up market, price management programs will save you money. In 2 out of 10 years, you will break even. In 1 out of 10 years—usually when you have locked in your rate and prices fall during the winter, as they did this past winter—you may end up paying more.
Our customer service representatives are always available to help you choose the pricing and payment options that you think will provide you with the most peace of mind. Please feel free to contact us at any time to request more information or visit our price protection page for additional details.