What pricing option should I chose for my heating oil?

The unpredictability of heating oil pricing makes it difficult to determine the best way to pay for your oil in a given year – which is why we offer several options for doing it. In this blog post, we’ll explore those options in greater detail.

P. Gagnon & Son pricing options and considerations

When it comes to choosing a way to pay for your heating oil from P. Gagnon & Son, you will choose from options that differ in terms of the convenience they provide and the risk they carry. Each pricing option has its own advantages and disadvantages, as you’ll see below.

Here are the heating oil pricing options we offer:

Market Price – The market price for heating oil changes from day to day, with no high- or low-limit; you will simply pay our regular, competitive daily price for your oil. If you choose to pay market price, you will benefit from a drop in oil prices without paying a fee – but you will also pay more for your heating oil if the market rises. Purchasing at market price is easy and carries no commitments or costs, but the price you pay is unpredictable. Remember: heating oil prices tend to rise – sometimes significantly – during heating season.

Price Cap – With a Price Cap, you’ll be protected from rising market prices while still being able to take advantage of price drops if they occur; you will, however, pay a fee for that benefit (the Price Cap fee covers the cost of insurance to protect against falling prices when we purchase oil from our suppliers for the season; we don’t profit from collecting it). A Price Cap protects against the heating oil pricing spikes that could occur during a period of high fuel demand.

At P. Gagnon & Son, we offer our Price Cap program by itself or combined with our SimplePay and PrePay programs. With SimplePay, your annual heat oil delivery bill is spread over 12 equal payments; with PrePay, your pre-season purchase locks in a maximum price for all your committed gallons.

Fixed Price – With a Fixed Price, you pay for the whole year’s worth of heating oil up front. Your price will not change, no matter what.

Flex Plan: We know everyone doesn’t want Price Protection – but everyone likes to save money. With a Flex Plan, you pay up front for the whole season’s worth of heating oil and get a 25-cent discount from the heating oil market price on the date of your fuel delivery.

So summing up: If you want to keep things simple and don’t mind the possibility that you will pay more for your oil during heating season, choose the market price option. If you want to rest easy knowing your heating oil won’t rise above a set price and don’t mind paying a fee, a Price Cap is the way to go. If you want to purchase your fuel in advance and are comfortable paying a pre-season price, choose the Fixed Price option; if you want that same pre-season purchase convenience but would rather pay a discounted market price, choose the Flex Plan.

Still not sure how to pay for your heating oil? Let’s talk about it.

Whatever option you choose, you can rest easy knowing P. Gagnon & Son will be there for you as promised – no excuses, and no exceptions. Contact us today to get started, or to learn about some of our other convenient services. Our licensed heating specialists and drivers are just a phone call away!