Like most people, you may be confused about whether to choose a Market-Rate or a Fixed Price for your home’s heating oil this winter. This is a common dilemma many homeowners face and there are pros and cons to both. No matter which plan you choose, Levco provides safe and timely deliveries of heating oil at competitive prices, keeping local families and businesses warm throughout the winter no matter how severe the weather.
Also referred to by some as Spot or Variable, Market Rate heating oil plan pricing floats with the market. With a Market-Rate plan, customers are charged what the price of oil is on the day of their delivery.
Pros: No premiums, no upfront costs, no contracts, no cancellation fees, when the price goes down you pay less.
Cons: When the price goes up you pay more.
Also referred to by some as a Lock-In or a Guaranteed Price. On the Fixed Price heating oil plan, customers pay for heating oil at a set price for a certain length of time or a certain number of gallons.
Pros: If prices go up you still pay set price.
Cons: Buying oil into the future will generally cost you a premium. Most Fixed Price plans have contract fees either upfront or cancellation fees on the back end, and when the price goes down you still pay the set price.
Some years the oil market can be volatile, but in most, you will only see small variations (Check out what the oil market has looked like over the last few years: YCharts). Over time, Levco customers who have chosen the Market Rate plan have spent less on purchasing their oil. This is not guaranteed to be the same in the future, and in years of a highly volatile market, fixed-price heating oil contracts may be more attractive. You can also learn more about Why Heating Oil Prices Fluctuate.
On a tight budget or just like to know what you are going to pay each month? Learn more about setting up a Budget Plan. Regular monthly payments throughout the year can help spread out your oil and service costs.
Levco customer service reps can help you determine which oil price plan is right for you, so give us a call and speak with an account manager today! Don’t forget to stay up to date with Levco by liking our page on Facebook.