Someone trying to cut their home heating costs as much as possible has a few options when ordering heating oil. Signing a fixed-rate contract with a company helps homeowners avoid fluctuations in Heating Oil Prices in Norwich CT that respond to market forces, such as the cost of crude oil. An alternative involves signing a capped-rate contract, which ensures the price per gallon will not above a certain cost throughout the season.
The fixed-rate contract holds the risk that the price per gallon will drop below that fixed rate. The customer still has to pay the cost per gallon he or she signed up for. However, the fixed rate typically is lower than the capped rate. The capped rate requires the customer to pay the market price per gallon up to a maximum. If the market price rises higher than the maximum, the customer only pays the capped rate as agreed. These options may involve paying for the entire season’s fuel ahead of time or having the service automatically bring oil on a regular basis and invoice for the delivered amount at that time.
Another possibility involves watching the Heating Oil Prices in Norwich CT on a weekly basis and calling for a fill when the prices are low. Homeowners usually can do this without signing any contract, although some companies will only deliver oil to customers who have signed a contract. Some people aren’t comfortable with locking themselves into using one particular service for the year, though, especially if they’ve never used this service before. Contracts usually are set up for an entire year, and there may be a penalty the customer has to pay if breaking the contract.
There are advantages and disadvantages to all these choices and some level of risk that the customer won’t be getting the lowest price possible if he or she would have made a different choice. A person needs to think carefully about the situation and make the service selection that is best for the individual’s or family’s needs. Anyone shopping for a home heating oil provider may contact a service such as Andersen Oil Company and ask questions about the various pricing options and contracts offered. Simply click here to get more info.