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Market Price Or Pre-buy: Which Is Better?

pre-buy fuel vermontChoosing the best way to pay for your fuel deliveries isn’t always easy – but it will definitely be easier if you understand the options available to you.

At Jack F. Corse, we offer two basic ways to pay for your heating oil or propane: a pay-as-you-go option (often referred to as “will call”), in which fuel is purchased at the market price on the day of purchase, and a Pre-buy (or fixed price) option.

The market price for heating oil and propane changes from day to day, with no theoretical limit as to how high or low it could go. If you choose to pay market price, you’ll benefit from falling prices, but you’ll also pay more for your fuel if the price rises. The market price can range widely based on a number of variables, including the cost of crude oil and the weather.

With a Pre-buy option, all gallons for the upcoming heating season are purchased in advance, at an agreed-upon pre-season price. Once you enter that contract, the price is locked in: you’ll pay the same price throughout the heating season, no matter what happens in the market. With a Pre-buy, you’ll benefit if heating oil or propane prices rise (which they usually do, unless we have an extremely mild winter or some other unexpected event), but can’t take advantage if fuel market prices drop.

Each of these options has its advantages and disadvantages – and much of the decision about which plan is right for you depends on your tolerance for risk. If you like certainty, a Pre-buy price might be best. If you’re less risk averse and want complete control of every purchase, will call might be a better option.

Need help in choosing a heating oil pricing plan that’s the right fit for your family? Contact Jack F. Corse today – we’re happy to talk about it! Enrollment for Pre-buy is open now, so act soon to lock in your price for heating season 2020/21!

And remember: for reliable propane delivery and heating oil delivery in Lamoille, Franklin, Northern Chittenden Counties in Vermont, trust the pros at Jack F. Corse!