Heating Oil Help......Thoughts...

[Todd Z]

OK, Figured I would ask another one of those normally easy issues BUT ..... LOL



My oil company is giving an average price a gallon this year for oil WITH the service contract included in the price...



They have 2 plans right now....



1) Lock in at $3.89 a gallon... No matter what, I pay $3.89... if it goes DOWN or UP I pay the same...



2) Variable plan.... Pay what ever market is... Right now they are offering $3.69 a gallon...



I am kinda leaning toward the lock in and just say forget about it....



I may fill in with COD here and there and the Bio diesel, But that is another story..



Thank you all,



Todd Z

 

[Dingo]

I have ZERO experience with heating oil, but I'd do the $3.89 one, as all types of oil and oil products seem to be going up.

 

[EddieS'04]

With this storm prices are going to go up. With winter only a few months away. That will drive the price also.

 

[A K]

I read a few commerce reports that state that home heating oil will be in the $4.50 range this winter. Take it with a grain of salt, though.



Alternatively, prepare. My folks have a pair of 500 gallon tanks. Fill now, and fill about in the spring.

 

[Jeff Tichy]

I'm 25 miles due east from the other side of no-where in northwest Iowa and we have a choice, propane of electric. We happen to be propane. I called my regular supplier (one of three) a couple weeks ago and propane was $2.08 gal. He said hold on a week or so, prices have been comming down but I'll lock you in at no more than $2.08 gal. Aug 30, he came out of put 500 gallons in my propane tank for $2.00 gal then turned around and gave me a cash discount of .05 gal if paid in 15 days.

Fuel prices are all over the board right now. I'd shop around a little before I locked in at $3.89 specially if you can run cash at $3.69 gal.

Are there other suppliers in your area? have you checked with them?

will your current supplier meet you in the middle (3.79)?

Our supplier will lock a price if you commit to a certain number of gallons with delivery over time.

 

[Chris Castineira]

I also have limited experience with eating oil but I'd say fill 'er up at 3.69 and then lock 'er in for the long haul. At least with the 3.89 you can basically estimate how much your heating bill will be and plan accordingly.

CHRIS

 

[Jim parnell]

they are saying gasoline will jump $.85 to a $1.00 per gal in East TN due to IKE headed towards TX, and spot outages reported in the Knoxville TN area as well, gas was $3.59 today on the way home from work, I filled up Monday am at $3.50/gal, seems like a bargain.

I guess I have to agree with dingo, and lock it in, odds are you will probably be better off, but no guarantee of it either. good luck.

 

[Johnny O]

A lot of people here are converting from oil to natural gas. If that's a option, I'd say look into it.

 

[Todd Z]

This is NY they beat you up any way they can....



I called a talked to them, Locked in at $3.79 with the service contract...



Thank you all



Todd Z

 

[Gypsy me]

Todd Z, Pellet stove for heating. It is waaaay more cheaper to heat and not that difficult to install. Worth checking into for the future. and best time to buy one of those stoves is spring and summer time.

 

[Bill Barber]

Todd, How old is the heater?

We had a 300k BTU ray furnace in our last house 600 gal inground tank.

ran a 3 GPH nozzle.

My furnace guy recommend that we upgrade it, so he installed a new SS crucible, new, pump and a .8 GPH Nozzle, put out the same amt of heat.

600 gals would last us two yrs, am sure now it would last 6 yrs

Took him a day and cost 1800 bux, at todays fuel costs the mod would easily pay for itself in short order.

 

[Kevin Palmer]

My brother in law owns an oil company. Part of their service is the delivery of home heating fuel.



They are in Turks and Cacaos right now but we will be talking with them tomorrow of Monday for sure.



I will ask him his opinion of the expected future of the cost of fuel oil and get back to this post with the info...

 

[Gavin Allan]

300 BTU furnace!?!?! Do you have a mansion or a house with no windows?



I have a 60 BTU furnace and it keeps my 2500 sq foot home toasty to 20 below zero.

 

[Bill Barber]

House was3500 S/F, built 1923, no insulation, basement with 3ft crawl space.

all single pane, double hung windows, 480 panes of glass.

Furnace was installed 1949, furnace guy loved the darn thing, called it the Rolls Royce of furnaces ( bugger was huge), one pellet stove, two woodstoves, one ton of pellets and 4 cords of wood kept us toasty all winter.

ran the furnace maybe 1/2 hr in the morn only, we rarly see 20 above

 

[Gavin Allan]

Dang! Remind me to never to volunteer to help you wash windows...

 

[Richard L]

Todd,

The prices are down now because we are barely out of the summer season when the market in heating oil is much slower, and the price of oil is lower. Demand for heating oil will probably go up when the colder weather kicks in and the prices will rise.



Because of the deliver charges built into the cost of each gallon of oil, they charge you what ever they want and you really don't have anyway of knowing if their price increase is justified, or if you are making up their losses on the sales at the locked in price?



If it were me and it was possible, I would get extra oil storage tanks, buy oil at the lowest price to fill my tanks, and hope I can get throught the winter without having to get refills.



...Rich