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CURRENT ISSUES
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Heating Oil Prices
EXTRA …EXTRA … “Crude Oil prices are at record
levels.” All
the talk has been about the record prices we have been paying
for gasoline. Now
we need to be aware that winter weather is just a few months
away. We know
from experience that cold weather and the demand for heating
oil typically draws down supplies and may increase costs
further. Its not
too early to begin thinking about the precautions you should
consider to protect yourself from adverse affects of sudden
increases in home heating oil prices and possible supply
shortages. The
following questions and answers may be of assistance to
consumers who heat their homes with heating oil.
Q. What actions can I take to
protect myself from sudden rises in oil prices during the heating season?
A. Dealers are likely to wait as long as possible to assure
they know their costs and supply.
Shop in advance of the winter season for a competitive
price from a reputable oil dealer.
If possible, seek out and ask for consumer references
regarding the dealer’s reputation for reliability and
service. Consumers
may choose to have their tanks filled before the onset of cold
weather and can purchase some of the season’s oil early,
when prices are often lower. In addition, many dealers offer price protection programs in
the form of fixed price contracts or price cap contracts. Typically, a fixed price contract requires that a consumer
agree to pay one price for oil all winter despite the
fluctuation of oil prices in the market.
The cap price contract puts a ceiling on the price per
gallon of oil that a consumer will pay during the contract’s
term, while allowing the customer to pay a lower price per
gallon when market prices drop below the cap.
Dealers may also require a consumer to make an advance
payment of the estimated season’s usage to qualify for
participation in a price protection program.
Q. If I decide to enter into a
fixed price contract for the purchase of home heating oil,
what should I be aware of?
A. Before signing a purchase contract or otherwise agreeing to
enter into a price protection plan, request that the dealer
disclose all material terms of the contract, including but not
limited to, the fixed price or cap price per gallon, the
commencement date of the contract, the amount of any
prepayment required, default terms, and the termination date
of the contract. Massachusetts’
law requires that all material terms of a contract be
disclosed to consumers. Require
that the material terms be provided to you in writing and
signed by the dealer. If
a written contract is provided, carefully read all the terms
and conditions before you sign it.
Keep a copy and any solicitations or advertisements
that accompany the offer for your records.
Also, ask the dealer what steps he has taken to ensure
that he will have a sufficient supply of oil to cover the
price protection program.
Q. Where can I
get help if I believe my fixed price contract is not being
honored?
A. If you believe that an oil
dealer is refusing to honor a fixed price contract or is
otherwise engaging in unfair or deceptive contact, please
contact CAC.
Q.
What else can I do to protect myself from fluctuating
home heating prices?
A. According to the USEPA,
a significant portion of the energy used to heat our homes is
wasted. By using a few inexpensive energy efficient measures, such as
better insulating windows, doors, attics, and heating ducts, a
homeowner’s energy bills can be significantly reduced.
Energy efficiency improvements can make your home more
comfortable while at the same time yielding long-term
financial rewards. CAC
has free information of Energy Star.
CHECK
CURRENT OIL PRICES AT www.newenglandoil.com
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