Pre-Pay Home Heating Oil 2007-2008?

**banana** · 05-19-2007, 02:43 PM

Did anyone get any info on prepaying? I just got a letter in the mail. The rate is $2.389 per gallon for prepay. It is lower than last year which was $2.499 a gallon. This year was the first year that we lost money prepaying. Is anyone planning on prepaying again this year? What rates did you get.

By the way. I went online to check out the competition and the company that I use is the lowest for prepay.

**kabin63** · 05-23-2007, 11:21 AM

Did you lose money because you prepayed and the rate ended up lower than you thought? I would think they would credit you what was not spent or atleast apply it to your next bill. Doesn't seem fair that you should have lost money on this deal. I use natural gas, so I don't know how it works for fuel oil.

**nodmicks** · 05-23-2007, 11:59 AM

We prepat gas not oil but we got a $101 credit on our summer fill whilch was done afew weeks ago. Since the price was down they gave everyone the fill and 3 months to pay. There has been no mention of prepay for next season yet.

**banana** · 05-23-2007, 04:28 PM

Yes I ended up loosing money. This was the first year that the prepay didnt pay off. This year the rate is lower than last year which was $2.499 a gallon.

**nodmicks** · 05-23-2007, 06:18 PM

Banana I am sure glad we get any difference in a future credit. That bites that you lost it.

**Darlene** · 05-23-2007, 07:46 PM

About losing money by prepaying, there are years you are ahead of the game & others you are not. Each (you & they) takes a risk.
Our oil people have changed the way their plan is structured and we will not be prepaying after at least 13 years of doing so. Now they want you to opt in at $66?99? non refundable and that will lock you in & if prices go down you will pay less...blah blah blah. I'm not paying a non refundable fee to be in a program that won't help me much. We are using more wood and could probably get away with one tank load of oil for the winter so will shop in summer & fill. I think our oil co will be losing customers over this.

**banana** · 05-23-2007, 09:32 PM

Darlene - My company doesn't offer that.

I did call them up since I was upset that we lost money. This was actually the first year since 1996 that we lost money prepaying. I told the owner that I wasnt happy and that I wanted to prepay some but not the minimum of 500 gallons. I also told him that when he delivers I want to be able to tell them whether or not to use my prepay gallons or let me buy it at the market rate if it is lower. He agreed! So I decided to prepay 350 gallons. I do have to use the 350 gallons of prepay before the end of next April at the price I paid, but lets say if I get my first fill-up in November and the market price is $2.00 a gallon I can call them up and pay that in cash instead of using any of my 350 gallons that I prepay for $2.38 a gallon. As long as I use the 350 gallons that I prepay before April I won't have a problem. Its still a gamble, if the price drops drastically I'll be stuck paying $2.38 a gallon for 350 gallons, but if the price rises at least I wont have to pay anymore money for 350 gallons. I feel more comfortable doing it this way. Besides I really didnt want to part with $1500-$1600 in one shot. We finally built up our emergency fund to 7,000 and I really want to keep adding to it. So I broke down and wrote a check for $836.00. Yes I took it out of my emergency fund but I am hoping to add back to it as soon as possible.

**homemaker66** · 05-24-2007, 07:00 AM

We heat our home with propane and I always lock in our price in July which this year it was 2.09 then I prepay 1000.00 and that will take us through the year. I love doing it this way because we never have to worry about the fuel payment around the toughest part of the year for us. Oh I always get it in written of the price so they can't change it over the year. AND if they try to I have every right to get my remaining money and take my business else where's.