Recent world events are giving us an opportunity to purchase the lowest capped pricing on home heating oil in YEARS! Call today and purchase your next heating searson’s capped price home heating fuel & sign up for budget billing. 12 equal payments – no surprises!
What is a price-cap plan?
When you contract with CES for a “cap-price” for the winter — we spread out your total annual purchased gallons over a “heating curve” based on historical heating ‘degree days’ (measure of outside temperature) over the last four years. We use this data to purchase “call options” from a broker on the NYMEX (New York Mercantile Exchange) for your gallons required over those specific heating months. This call option is really nothing more than insurance that the price will not go ABOVE a set price in the coming winter months.
But can I lose money?
No. If the current retail price of propane gas or fuel oil DROPS — you will always pay that lower price which is our “prompt pay” or COD price. Your real advantage is when the prices INCREASE as they do more years than not when demand for heating fuel increases. With a cap-price, you will never pay more than the price we quoted you when you secured the gallons with a contract. The most you can ever ‘lose’ with a cap plan is the cost of that insurance but when you weigh out the 4 out of 5 years pricing increases, the law of averages show this is a very smart, safe investment saving consumers a fortune.
What is the cost of getting a “CAP PRICE”.
This tends to vary year to year as the markets move up & down and the companies that sell the ‘options’ evaulate their ‘risk’ for the coming year. A cap price can normally be secured for $0.08 – $0.25 per gallon depending on where the market is currently. We can give you a quote anytime actually and encourage consumers to ‘pull the trigger’ for a price when they find it comfortable for the coming year. If a dealer isn’t telling you a cost per gallon or says there isn’t one — they are hopefully building that price into the gallon price but what could be worse — they aren’t actually purchasing any protection for your gallons. Not good and happens all too often by sketchy fuel dealers “playing the market” with your money.
If you are interested in a cap price plan, please call the office at 800-874-1975 or complete the form below and a specialist will reach out to you. Please note, budget plans are sent to customers in April and payments begin in May.