Buying your heating oil should be and can be a simple process. C.E. Kiff is here to help you understand how each price plan offers different benefits to you. Ultimately each price plan C.E. Kiff has designed to help lower the price to heat your home. We don’t have the power to change prices but we do have tools that we can use to protect our customers from paying too much for their heating fuel.
History
Heating fuel price plans were developed 30 years ago as a simple plan that a homeowner purchased in the summer or fall to protect themselves from higher fuel prices typically seen during the winter months when they needed fuel delivered. This usually was a fixed price prepay plan, meaning the price would not change and the customer paid for all of their heating fuel in August. As with anything this worked for the better part of the last 30 years, but today newer plans have evolved because the price of fuel doesn’t always only go up in the winter and down in the summer. Sometimes it goes down in the winter and up in the summer. We don’t ever know which way heating fuel prices will go so it is important to look at a plan that will protect you should the prices go up and more recently a popular option that allows your price to be lowered if prices go down. REMEMBER to do nothing and pay for your fuel at the going market rate is very risky and typically the most expensive way to buy your fuel.
Let’s Begin
Your fuel price plan decision is based on two questions,
1) First, do you want to prepay, or would you like to make 10 monthly budget payments and spread your fuel costs out?
- If you want to and can afford to pay for your fuel upfront for the season than a Prepay type plan will work for you. Next simply decide if you want a fixed (locked in) price or a capped maximum price per gallon.
- If you don’t want to pay for your fuel upfront – not a problem. A monthly budget plan will allow you to spread your heating costs over 10 equal monthly budget payments August – May.
2) Second, are you comfortable with a fixed price per gallon (locked in) or would you like a capped maximum price per gallon?
- If you think the price will only go up from here and are comfortable with locking in a price even if the market price goes below the locked in price, than a fixed (locked in) price plan will work for you.
- If you think the price will go up from here but you DO NOT want to lock into a price because you want the ability to get a lower price if the market should go down at some point, than a Capped maximum price plan will work for you.
Pricing plans are designed to offer you a simple and clear path to purchasing your fuel although the market conditions and directions are not as simple and clear. In this spirit, we have created the graph below to show the differences in prices among the C.E. Kiff Price Protection Plans and the Average Market Retail prices. You may click on the image for a larger view.
Monthly Budget Market Price Plan
By paying monthly you will break your fuel costs into smaller installments. With the Monthly Budget Market Price Plan you will not be included in any price protection plans, you will simply pay your monthly payment and receive your fuel at the market price on the day of delivery. This plan is simple to understand but remember if prices go up so will your price. Your monthly budget payment may change throughout the year based on the anticipated price of fuel. There is not any price cap protection or fee associated with this plan. As a Monthly Budget Market Price Plan customer you will be placed on automatic fuel delivery and you won’t have to worry about calling for fuel deliveries.
Monthly Budget Capped Price Plan
C.E. Kiff has developed a Monthly Budget Capped Price Plan to offer our customers the best of both worlds. Protection from higher prices by setting a cap (maximum) price that you will not pay more than, and by allowing your price to be lowered if the market should at a future time should drop. In addition to the price protection and Best Price Guarantee, our Capped Monthly Budget Plan allows you to divide your heating fuel costs into 10 equal monthly payments.
If the price goes up and above your capped rate, you only pay the capped rate and are protected from the higher prices. If the price goes below the capped rate, you pay the lower price. It is that simple.
A cap insurance fee is associated with this plan. The cost of the cap insurance is purchased from our suppliers and is non-refundable. As a Monthly Budget Capped Price Plan customer you will be placed on automatic fuel delivery and you won’t have to worry about calling for deliveries.
Pre-Payment Fixed Price Plan
A Pre-Payment Fixed Price Plan allows you to lock in a price that will not change for the gallons purchased. Your price per gallon of fuel purchased will not change even if the market goes up or goes down. As a Prepay Fixed Price customer your account will be placed on automatic fuel delivery and you won’t have to worry about calling for deliveries. Historically, the most popular and predictable way to purchase your fuel for the upcoming heating season has been the Pre-Payment Fixed Price Plan.
Pre-Payment Capped Price Plan (Heating Oil Only)
C.E. Kiff has developed a Pre-Payment Capped Price Plan to offer our customers the best of both worlds. Protection from higher prices by setting a cap (maximum) price that you will not pay more than, and by allowing your price to be lowered if the market should at a future time should drop.
If the price goes up and above your capped rate, you only pay the capped rate and are protected from the higher prices. If the price goes below the capped rate, you pay the lower price. It is that simple.
A cap insurance fee is associated with this plan. The cost of the cap insurance is purchased from our suppliers and is non-refundable. As a Pre-Payment Capped Price Plan customer you will be placed on automatic fuel delivery and you won’t have to worry about calling for deliveries.