Is it better to have fixed heating oil price?
Is it better to have fixed heating oil price?
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June 7th, 2010 at 2:46 am
It is a good deal to have a fixed heating oil price because of the constantly rising prices. But sometimes there are contracts and things that may get you into trouble. Some people sign contracts for, lets say, 100 barrels at that price. they pay the company in advance at that fixed price. But sometimes the prices rise so high that the companys cant stay with just what you paid on the contract. The company goes out of business, then youre out of money and the rest of the oil for the season. It sucks. ill try to find the article for you.
June 7th, 2010 at 2:46 am
Personally I’d go with the fixed. They say it can’t go higher than 3.109, but you never know. At least with a fixed rate, you’re sure it won’t get too high. Plus, oil will go up during the fall and winter. I always buy propane at a fixed rate before the fall and winter, trust me it’s a good idea. Go with the fixed. It’ll probably go higher, before it goes lower. Hope I was helpful = )
June 7th, 2010 at 2:46 am
I think I’d have to take the fixed price, it’s going to go up again this year.
June 7th, 2010 at 2:46 am
EXCELLENT QUESTION! i went throught the same senario last year when the hurricane damage helped push oil/gas prices to outrageous highs. i locked in on a fix rate natural gas rate and thought i was doing the right thing??? au contraire my friend!! i talked with 2 different gas companies about which one is cheaper the fixed or the variable?? statistically it seems that unless there is some catastrophe the VARIABLE IS CHEAPER!! the fixed is more or less insurance from price shocks, but as we all know most insurance is a rip off!!!!!! i have about 3 months left on my fixed rate plan and then i plan on doing the variable rate from now on. this leaves me the flexability to switch to whomever has the lowest rate anytime i choose and not be obligated for a year. oh by the way the fixed rate i thought was a good deal last summer is way higher than what i currently could get now under a variable rate, but if i break the contract i will have to pay 50$ to do so. next time i will not go fixed!!!!!!!!