Got "THE CALL" from my oil company...

[Shortstuff]

The once a year call asking us if we were ready to lock in for the next year because our annual contract runs out the end of this month. Our oil company offers us 3 options:

1. Pay the current daily rate on the day of delivery.
2. Pay one price no matter what the daily rate is over the next year.
3. Lock-in with a "cap" price which is a set price we will never pay more than, but if the daily rate is lower on the day of delivery, we get charged the lower rate (normally not any lower than the cap rate).

We have been locked-in with a cap price of $3.22.9 for the past year and the new cap price offered today is $4.03.9. Or we can pay one set price of $3.71.9 for the next 12 months no matter what the daily rate is. I told him I would let them know.

I ran into an oil delivery guy the other day and asked him what the rate was for that day (last Friday) and he said it was $3.19.9. There's no way to predict when the price of oil is going to stop it's current drop and start going back up again due to the winter demand. It's like playing chicken - You don't know when to flinch.

Has anyone else been contacted or worked out a contract with their oil company for this winter?

Steve

 

[JBlank912]

We had locked in at 4.099, but when we saw the prices dropping, and since I had not sent back the signed lockin, I called to drop and go open market, but since my service contract was from June, they said that would void it and I would loose the contract. Back and forth, and they gave me lockin at 3.599 (last year was 3.199) so i figured I would let it ride at that and since I do not guarantee a minimum purchase, as long as the pellet stovew does its thing, I'll just use very little oil and it will work out. Depending on this year's outcome with usage, will next years choices be-no contract no budget almost no oil. I still need it for hotwater and one room that pellet stove will not reach but its thermostat is set to 55.

 

[imacman]

Hey Shortstuff,

That lock-in price is pretty high. What is their regular daily cash price right now?

If it were me, I'd make them an offer for $3.59 lock-in, and see if they'll take it.

If not, (and the daily price is lower than that), I wouldn't lock-in....I'd wait as long as you think is safe (before the oil price bottoms out), then fill your tank, and burn lots of pellets.

My oil company wanted me to lock-in at $4.79, AND pay a $360 lock in "fee" (no, I'm not making that up!)....I told them to go scratch.

The price is going down every day, and they know it. Their just trying to get their $$ back on the oil they already bought.

 

[MainePellethead]

The price is going down every day, and they know it. Their just trying to get their $$ back on the oil they already bought.

Your absolutely right Mac....thats exactly what they are doing.

 

[terryjd98]

Going to be my first year burning pellets so I am planning on just paying whatever the current oil price is. Oil company wanted $422.00 a month for 10 months on my equal payment plan that started in September. I haven't paid them anything yet but am kind of thinking of offering them $200.00 a month for 5 months and then adjust my payments up or down come the end of January. Last year was just about $3,500.00 for oil this year they were figuring $4200.00.
With the pellet stove, insulating the old dinnig room where the pellet stove is going, kitchen off the dinning room, bedrooms and bathroom upstairs above the dinning room and kitchen I think the pellet stove will keep all them rooms warm enough. The living room and rec room are the furthest away but is only a 10 year old addition and has 6 inches of insulation in the walls and insulated basement so if they get too cool when were are in them an electric heater will keep them warm eaisly for a few hours without using much power.
Sure is hard to tell what to do the way the price of oil has gone up and down but have a feeling that the shape the US is in at the moment and how it affects all the other Countries Oil is going to stay right around the price its at now. Kind of seems to me oil is getting down to what the market will bare, maybe $80.00 a barrel if lucky.

 

[j00fek]

most of my family uses cash energy here in maine, pay cash at the current price, which is getting better and better every week.

 

[Flammam]

I am going to stay on "will call" just need to keep an eye on the tank. I have been filling it once a year and that time is coming around.

 

[lessoil]

I think the price for budget, if we had gone with it again was near $4.50. Last year price was $2.69
We picked up the insurance(option) last year but prices did not go down.
This year some oil dealers in the area are adding .35/gal for insurance(not an option) in case the prices go down.

We were lucky and had our P61 installed 4 weeks ago. Pellets should be here next week.
We are also on the "Will Call System"
We had 100 gal delivered in July(stupid move!) $453!!
Today price will be $353 for 100 gal.
That is an average of $4.00/gal Ouch
I am hoping that we can get by on 300 gal(Hot Water) + 4 tons now thru next July.

 

[bostonbaked]

I buy oil the same way I buy gasoline. By price alone. I don't fall for their BS "service plans" and then pay them anywhere from 30 -70 cents more a gallon for it every time I buy their oil. I have an independent oil burner repair man. He doesn't sell oil he repairs heating equipment period. Yes he will come to my home at 3o a.m. if needed but I would wait till daytime hours so as not to pay higher fees. I stick my oil tank because I have caught thieves shorting my delivery. I would never, I repeat never, have automatic delivery. It's like giving them your checkbook. They WILL deliver when it is advantageous to them price wise not you. My oil man right now is selling oil for $ 2.96.9 the price has dropped by 20 cents a gallon in four days. When I think it hits bottom I'll fill up. Yes it's a gamble but my neighbor who bought his oil the other day paid $ 3.19 9 and they shorted him 11- 12 gallons (he sticks his tank also.) The point is these oil dealers are no better than these stove dealers that have been getting a bashing here on the board. Be wise and WATCH these people they can and do cheat. If they short each customer just 10 gallons all day long and their truck holds say 3000 gallons well that's an incentive for a crook to be filling his or his friends tanks at our expense. If you think I don't know what I'm talking about stick your tank and I would bet at least half if not more are getting shorted. Those meters are only as good as their last calibration and who knows when that was. I use the stick and it's fool proof and I never get cheated any more. The fact that they Know you stick your tank keeps them honest. At least at my house. So don't worry so much about the per gallon cost worry more about what's going down that pipe while you at work to pay for it . Just my 2 pennies.............

 

[bostonbaked]

Just thought I would post this again for anyone who would like to make a stick for checking their oil deliveries. Just make a stick like a yard stick only longer. ( yard stick is to short ) Divided it into one inch increments, take your time and be very accurate don't make big fat lines. 48 inches is perfect for a standard 275 gallon tank. If you have low ceilings and not enough head room to get the stick in the tank. Then use a thinner piece of wood that will flex a little to get it into the tank. It's just like checking the oil in your car. Easy and accurate. Here is the chart you can print out and keep near your tank. (broken link removed to http://www.huskyheatingoil.com/docs/chart_275.pdf)

 

[lessoil]

Just thought I would post this again for anyone who would like to make a stick for checking their oil deliveries. Just make a stick like a yard stick only longer. ( yard stick is to short ) Divided it into one inch increments, take your time and be very accurate don't make big fat lines. 48 inches is perfect for a standard 275 gallon tank. If you have low ceilings and not enough head room to get the stick in the tank. Then use a thinner piece of wood that will flex a little to get it into the tank. It's just like checking the oil in your car. Easy and accurate. Here is the chart you can print out and keep near your tank. (broken link removed to http://www.huskyheatingoil.com/docs/chart_275.pdf)

Are there another set of measurements which indicate the profits in Exxon's pockets??

 

[bostonbaked]

Just thought I would post this again for anyone who would like to make a stick for checking their oil deliveries. Just make a stick like a yard stick only longer. ( yard stick is to short ) Divided it into one inch increments, take your time and be very accurate don't make big fat lines. 48 inches is perfect for a standard 275 gallon tank. If you have low ceilings and not enough head room to get the stick in the tank. Then use a thinner piece of wood that will flex a little to get it into the tank. It's just like checking the oil in your car. Easy and accurate. Here is the chart you can print out and keep near your tank. (broken link removed to http://www.huskyheatingoil.com/docs/chart_275.pdf)

Are there another set of measurements which indicate the profits in Exxon's pockets??

I wish we could add up all the profits we here at the board are keeping from their greedy mitts. I bet it a pretty good chunk and growing daily. :lol:

 

[slls]

My dealer just posted #2 oil at $3.239, lower than anybody else around here.

 

[FrankMA]

Hey Shortstuff, are the initials of the oil company A-G-M? Just curious because I got similar lock-in prices from A-G-M oil and they were about the same. I checked out a few local guys who post their daily prices on-line and the difference in price was crazy. 45 - 60 cents/gallons difference on 100 gallons or more plus about $120.00 difference for the yearly oil burner service. The only good thing they offered was a monthly payment plan spread over a 10 month period.

Got my Jotul c550 insert and close to 5 cord of hardwood this year so I'm hoping to use as little oil as possible. New doors, windows and good insulation will hopefully keep the cold at bay.

 

[roadrat]

My dealer just posted #2 oil at $3.239, lower than anybody else around here.

CashEnergy in central Maine was $2.99 a gallon last week and the oil market is down again today.

bill

 

[sinnian]

Be wise and WATCH these people they can and do cheat. If they short each customer just 10 gallons all day long and their truck holds say 3000 gallons well that's an incentive for a crook to be filling his or his friends tanks at our expense. If you think I don't know what I'm talking about stick your tank and I would bet at least half if not more are getting shorted. Those meters are only as good as their last calibration and who knows when that was. I use the stick and it's fool proof and I never get cheated any more. The fact that they Know you stick your tank keeps them honest. At least at my house. So don't worry so much about the per gallon cost worry more about what's going down that pipe while you at work to pay for it . Just my 2 pennies.............

"Typically full with 260/250 gallons max" (depending on design) (with a max of 268 gallons) hardly seems foolproof and well within the limits of your neighbor f'ing up for those 11 gallons.

IDK about Mass., but the trucks are checked/calibrated and re-checked/calibrated by the state throughout the year in Maine. I would be more concerned with pre-buying and having the company go south, then the oil company cheating me out of 11 gallons of oil.

 

[Shortstuff]

As anyone else does, all we can do is expect higher prices and hope they don't get too bad.

From all the responses so far it seems like it might just be better to get oil as we need it and forget about renewing our contract with the oil company.

Thanks for all the input!

Steve

 

[bostonbaked]

Sorry dupelicate

 

[bostonbaked]

Be wise and WATCH these people they can and do cheat. If they short each customer just 10 gallons all day long and their truck holds say 3000 gallons well that's an incentive for a crook to be filling his or his friends tanks at our expense. If you think I don't know what I'm talking about stick your tank and I would bet at least half if not more are getting shorted. Those meters are only as good as their last calibration and who knows when that was. I use the stick and it's fool proof and I never get cheated any more. The fact that they Know you stick your tank keeps them honest. At least at my house. So don't worry so much about the per gallon cost worry more about what's going down that pipe while you at work to pay for it . Just my 2 pennies.............

"Typically full with 260/250 gallons max" (depending on design) (with a max of 268 gallons) hardly seems foolproof and well within the limits of your neighbor f'ing up for those 11 gallons.

IDK about Mass., but the trucks are checked/calibrated and re-checked/calibrated by the state throughout the year in Maine. I would be more concerned with pre-buying and having the company go south, then the oil company cheating me out of 11 gallons of oil.

Don't you know, everything is corrupt in Ma. ;-) To each their own . I don't prebuy. I buy the same amount each time and I don't get ripped. When they talk about filled with a tank that is not built with 90 degree corners and they can't see they don't fill to max. That's what they are referring to. A whistle sounds in the pipe and the filler stops the pump. A different guy may push a little more in than the next guy. Many gas stations use the same method. It is a solid way of checking. What do you do ? Trust method ? I learned better> If you know another way tell us, I'm just trying to help people to not get ripped off. So what axe are you grinding ? Do you sell oil?

 

[strangemainer]

I dont know why anybody would ever lock in with what oil has done recently.

SCREW THEM! RIDE THE WAVE!!

 

[Duetech]

Are there another set of measurements which indicate the profits in Exxon's pockets??[/quote]

Unfortunately yes there is. The lack of cash in ours...

With the price of oi in the 80's why isn't gas down in the solid 2's. Hang on to your hats as an oil analyst here in MI says 2.5 is likely the lowest we will see and by Jan or Feb we will see the up ward trend again. Nation's hurting, no end in sight, holiday season is coming, banks are getting stingy with money they lend, world edging towards a unified currency, companies NAFTA-ing jobs overseas and oil companies still making massive profits (compared to any one else not making much if any)? Yup! It' time to be reasonable and anti-up so they can make a living. Phooey let's get serious about bio-fuel (Chine and India are and are saving millions) and not give our politicians an option. Do it or be recalled and join the unemployed AND no retirement benefits. You know? Like us?!...Cave2k

 

[bostonbaked]

The old saying goes, (PIGS GET FAT, HOGS GET SLAUGHTERED) according to this mornings papers the hogs are getting slaughtered. Oil below $82 for November deliveries. and trend is downward we may see $50-$60 a barrel again soon

 

[imacman]

It's below $80 right now ($79.79)

www.oil-price.net

 

[daleeper]

Just thought I would post this again for anyone who would like to make a stick for checking their oil deliveries. Just make a stick like a yard stick only longer. ( yard stick is to short ) Divided it into one inch increments, take your time and be very accurate don't make big fat lines. 48 inches is perfect for a standard 275 gallon tank. If you have low ceilings and not enough head room to get the stick in the tank. Then use a thinner piece of wood that will flex a little to get it into the tank. It's just like checking the oil in your car. Easy and accurate. Here is the chart you can print out and keep near your tank. (broken link removed to http://www.huskyheatingoil.com/docs/chart_275.pdf)

Are there another set of measurements which indicate the profits in Exxon's pockets??

Yes, you take that same stick, and catch them bent over, and ....whoops, did I just say that?

 

[bostonbaked]

Just checked again, oil is down to $2.68 even, in my area. How low will it go ? Any guesses ?