If you grew up in the city where homes are not heated with HVAC systems that use heating oil, then there are a few important things that you need to know about buying your heating oil each winter for your new home. While you can order fuel oil to be delivered at any time, there are some time-tested strategies you can use to get the best prices for your heating oil deliveries, such as:
Knowing the Difference Between Fixed and Capped Locked-In Pricing
Many residential heating oil suppliers keep their customers loyal to their companies by offering the choice of locking in your price for a year's worth of fuel oil. This is nice for you as a new homeowner because fuel costs can vary widely with the international commodities markets. It will make it much easier for you to budget your household expenses if you have an idea of the maximum amount of money it will cost to heat your home through the cold months.
Locked-in pricing generally has two different options that you can choose from:
A fixed price lock-in means that every gallon of heating oil that you purchase will cost you the exact same amount of money. This is ideal if the price goes up and not quite as ideal if the price goes down.
A capped price lock-in caps the maximum price that you will pay per gallon for heating oil. This arrangement is ideal if you believe that the price of oil is likely to drop in the next year. With all other things being equal, if you have a choice, then a capped price lock-in is generally the best deal for you as a homeowner because it allows you to take advantage of drops in the oil market to fill up your tank.
Ordering Your Heating Oil On-Contract vs. On-Demand
The other choice you need to make about getting your home's heating oil is if you prefer it to be delivered on-demand or on a contracted, regular delivery schedule. Generally, when you sign a contract for a regular oil delivery each month, then you will be billed each month and the oil truck's driver will inspect your tank and perform any necessary repairs. With on-demand deliveries without a contract, your oil will be delivered at current market price and you will be expected to pay for it when it arrives at your home before the driver leaves.
For more information, consider contacting companies like Fox Fuel Co.