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Frequently Asked Questions
Payment Plan
- What advantage is there to pre purchasing my fuel rather than just paying
for it as I need it?
- Why can’t I get a refund if I do not use all of my pre-purchased
gallons?
- Why doesn’t the advertised pre-purchase price remain the same
throughout the year?
- Why must I be on automatic delivery in order to take advantage of this
program?
- Why does the program expire on May 31st of each year? Why can’t I
carry my prepay from one to the next?
1.
What advantage is there to pre purchasing my fuel rather than just paying for it as I need it?
The price per gallon for fuel purchased under this program is
determined by the price we pay for it. The program is offered
at a time of the year in which factors such as demand and
inventory levels have a downward effect on prices. These prices
are then passed along to you at a time of the year where demand
and inventory levels typically have an upward effect on prices.
2.
Why can’t I get a refund if I do not use all of my pre-purchased gallons?
When we sell the heating oil to you, we enter into supply contracts
with our suppliers for that product. We must take delivery
on all of the product we contract for. If we do not, we must
pay for it anyway. On our plan, you don’t lose the money
for the excess gallons. It is kept on your account and can
be used for future purchases such as the pre-purchase plan
for the next year.
3.
Why doesn’t the advertised pre-purchase price remain the same throughout the year?
We only pre-purchase a certain amount of fuel for this program
in advance because we don’t want to purchase too much.
Once this amount is sold, we must then go back to the market
and buy additional gallons. We pay whatever price the market
is then trading at. This price is usually higher because it
is closer to the winter months where demand plays a bigger
role in determining price.
4.
Why must I be on automatic delivery in order to take advantage of this program?
Simply put, automatic delivery is the most efficient way for us to
deliver oil. Scheduling, routing, dispatching and the actual
delivery of the product are all made more efficient and thus
reduces our costs, which allows us to offer the plan at the
price we do.
5.
Why does the program expire on May 31st of each year? Why can’t I
carry my prepay from one to the next?
We are only able to pre-purchase product so many months in advance.
Remember, we have to pre-purchase the fuel so that we can
sell it to you at the price established. Those purchases are
made on a month by month basis. If you use all of your prepay
prior to May 31st, that’s fine. If not, we don’t
have purchases made beyond that to cover the sale. On May
31st of each year, we settle the books. We zero out any remaining
gallons and the new plan starts, based upon purchases we were
able to make for the upcoming season.
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