Shopping for the Best Home Heating Oil Deals
Heating Oil Image courtesy U.S. Army Environmental Command
Paying for heating your home can get very expensive! With snow, sleet and ice during the colder months of winter, this cost of heating becomes a sizable chunk of the family budget . There are many different options when it comes to heating your home. One of these options includes heating oil. Heating oil is a fuel type that is most commonly used in the U.S. and Canada for the home and business.
Many people are finding gas furnaces and water heaters more efficient and easier to maintain than ones working on heating oil, but if changing your furnace to natural gas or propane (LPG) is not an option, we’d like to offer some tips on keeping the cost of heating with oil in check.
Unfortunately, you cannot control outside factors that contribute to the high price of heating oil. This is because the cost depends upon the natural supply and demand for crude oil in addition to any natural disasters that are going on at the time. For this reason, you may find that you are paying too much for heating oil, more than ever before! There are, however, things you can do when shopping for home heating oil in order to pay the lowest price. These things include the following:
Get your heating oil price locked in early in the heating season. This is one of the most popular ways to save money on the cost of heating oil. You can have your rate fixed or capped for one year at a time. You will want to do this when you believe the price of oil is at the lowest. This is because when your price is fixed or locked in, it won’t go up or down.
It may be difficult to find suppliers willing to lock in prices due to the constantly changing market. The cost of oil in the U.S. is constantly changing right now. If you can find a low price, it would be advisable to see if you can find a company willing to provide you with a fixed rate program.
At the same time, if the price of oil is high, you will not want to lock it in. If you currently have a locked in rate that you are unhappy with, you will need to know the exact date that it expires so that you can quickly change prices when you are first able to.
Consider a budget plan for your heating oil. A budget plan will help you pay a reasonable rate each month. The oil company will evenly spread out the average cost of your oil over 12 months. On the last month, you will either pay the difference in oil or you will receive a credit to your account. While a budget plan does not actually reduce the cost of your oil, it makes the cost easier to manage during the winter months.
Clean and tune your system on a regular basis. By cleaning your oil heating system, you can save ten percent or more on your bill! Consider a full-service oil company in order to have this type of maintenance included in the cost.
Ask about special discounts. Many full-service oil companies will give seniors, regular customers, those with a certain employment, or prompt bill payers special deals. You won’t get these discounts, however, unless you ask for them.
Consider C.O.D. discount dealers. These types of dealers will save you a large sum of money on your heating oil, the only catch is that you must pay by cash or card on the actual day of delivery. In addition, this company does not provide any type of maintenance, service, or budget plans and there are no fixed rates. Although you won’t have any special services, you will receive the best pries of oil around. This is an especially great option during times when oil prices are constantly fluctuating. This is particularly a great idea right now in American during these current economic times.
Join an oil buying group. An oil buying group is one that uses the entire membership to help negotiate the best price on heating oil. There are several different oil buying groups that can help you save a great deal of money. These groups do charge a yearly membership fee, but in return for the fee you will typically save about 20 cents per gallon or even more.
Regardless of the ways you choose to save money, it is important that you do your homework. You should research the different oil companies available to you and speak with them on the phone. This will help you compare prices and options and can ultimately save you hundreds of dollars. You should begin your calls each year a few weeks prior to when your current contract runs out. There are several different things you will want to ask when talking with the oil companies. The top five questions to ask include:
1. What is the price per gallon on your regular rate?
2. Do you have any fixed rates and if so, what is the price per gallon for these rates?
3. Do you offer any discounts or deals that I qualify for?
4. Do you have a service contract? If so, what is the price for this contract and what is included here?
5. What is the term of the contract? What is your policy for ending and beginning contracts?
When you are shopping for heating oil, you will want to be sure that you take the proper time to ask the questions you need to ask and take the steps required. Doing these things will help ensure that you find the best prices possible for heating oil for your home.