Oil Dealers Going Out of Business?

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MarkF48

Feeling the Heat
Nov 14, 2011
270
Central MA
Read in the paper this morning about an area oil dealer that closed its doors evidently due to lack of business. There were some customers that had purchased heating oil on a prebuy and now may be out the oil and their money.
Story kind of got my interest as I have about 220 gallons of oil from my own oil company that I pre-bought at about $2.50 a gallon a year or so ago. Since installing the pellet stove last November I haven't used a lot of oil and the tank last checked was at about 1/3 full, so not enough to prompt me to call for a delivery.

Got me wondering if there may be a trend in some of these smaller oil guys going out of business, so I thought I'd ask here if anyone else has heard of any heating oil companies shutting their doors on their customers.
 
MarkF48 said:
Read in the paper this morning about an area oil dealer that closed its doors evidently due to lack of business. There were some customers that had purchased heating oil on a prebuy and now may be out the oil and their money.
Story kind of got my interest as I have about 220 gallons of oil from my own oil company that I pre-bought at about $2.50 a gallon a year or so ago. Since installing the pellet stove last November I haven't used a lot of oil and the tank last checked was at about 1/3 full, so not enough to prompt me to call for a delivery.

Got me wondering if there may be a trend in some of these smaller oil guys going out of business, so I thought I'd ask here if anyone else has heard of any heating oil companies shutting their doors on their customers.

This happens every year.

Usually those small outfits that have pre-buy programs, they don't really have a large enough base to handle the price swings.
 
MarkF48 said:
Story kind of got my interest as I have about 220 gallons of oil from my own oil company that I pre-bought at about $2.50 a gallon a year or so ago. Since installing the pellet stove last November I haven't used a lot of oil and the tank last checked was at about 1/3 full, so not enough to prompt me to call for a delivery.

I'm not to sure if I would let the 220 gallons go undelivered too much longer. Where it's not this year's oil but last year's, I would be concerned about a loophole, which they wouldn't have to honor that price. Have them bring down 120 gallons and then when there is room, the other 100.

Tom C.
 
With pellets it's "cash & carry", no pre-buys, budget plans or any other gimmicks that they come up with. Oh yeah, they always have a service and installation dept, who are more than willing to give you a "free" audit and go over your heating needs. Translated--we have a new oil burner with your name on. And, they like to throw around the words energy efficient, efficiency and outdated. And them comes the big one: safety, they use when your wife is around.

Tom C.
 
Prior to pellet burning, I used small oil companies with pre-buys. But after they started go under and stranding people without their oil or money, I changed to larger companies like Irving. BUT then they tried to include a surcharge for oil pre-bought but not used. If you wanted a refund, they were charge 50 cents per gallon as a penalty.

Then came the pellet stove, now I dont need the oil man much any more. Maybe a tank per winter for hot water and cold snap backup, so no more pre buys.
 
The oil companies going out of business now or in the near future will be ones that took risks, were poorly run and possibly not have stellar customer service. Just like stove shops that popped up in 2008 and were gone in 2010.
 
here in Maine a huge oil company just got bought out...
Webber energy fuel just sold to Dead River co.....
that makes dead river one of the largest in maine...
 
MarkF48 said:
Read in the paper this morning about an area oil dealer that closed its doors evidently due to lack of business. There were some customers that had purchased heating oil on a prebuy and now may be out the oil and their money.
Story kind of got my interest as I have about 220 gallons of oil from my own oil company that I pre-bought at about $2.50 a gallon a year or so ago. Since installing the pellet stove last November I haven't used a lot of oil and the tank last checked was at about 1/3 full, so not enough to prompt me to call for a delivery.

Got me wondering if there may be a trend in some of these smaller oil guys going out of business, so I thought I'd ask here if anyone else has heard of any heating oil companies shutting their doors on their customers.
Saskatoon, Saskatchewan is quite a different place then Central MA, what up with that?
 
We had problems even finding anyone that still carries fuel oil in our area. places kept getting sold off. the last place delivered for 3 years, then told us we lived too far away.

We haven't told our fuel oil guy that we "pelletized" yet.
 
I'd get the oil delivered if they will still honor the price. Around here I see plenty of instances where people are switching to heat pumps or geothermal. When they do they run an ad offering to sell the oil in their tank at something less than current market price. Don't seem to have a problem selling it.
 
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