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Heat with oil? It might be time to lock in a good price

Posted by Cheryl Costa  October 9, 2008 09:05 AM

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If you heat your home with oil like I do, now might be the time to look into a rate lock plan with your oil provider. Oil prices fell yesterday to their lowest level this year. Demand is dwindling and supply is increasing.

Prices for home heating oil are now at or close to $3.00 per gallon if you belong to one of the mass buying agencies like MassEnergy. That is more than a dollar less per gallon than the price in May, June and July of this year.

It is important to note that this is the "daily" rate, meaning that this rate will fluctuate during the heating season. The price could be $3 now, but $4 or more in just a few weeks or months. If you want to lock in a fixed price for the winter, you will probably have to pay more than this rate, probably something like $3.30 to $3.45, but then your rate will be guaranteed for a fixed number of gallons. Of course, it is also possible that prices will continue to fall. You never know. However, I do remember thinking that the $2.59 price I locked in last winter was outrageously high and now I only wish I could find a rate that low. My plan is usually to lock in a fixed number of gallons that will get me through the winter and then float to the market rate for the deliveries that will occur in the late Spring.

Checkout this website to compare oil prices in our region and visit this website to learn more about the MassEnergy program.

This blog is not written or edited by Boston.com or the Boston Globe.
The author is solely responsible for the content.

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