The Best Way To Save On Heating Oil This Winter

The good news about energy prices is they are going down, meaning traveling this winter is going to be much cheaper than it has been in recent years. Another bonus is how much you will save on your heating oil during what could be another cold winter. With prices low and possibly going lower, you need to know the best way for you to maximize your savings.

Current Prices

As of November 23, 2015, heating oil prices had dropped to approximately $2.38 per gallon, almost a dollar less than at this time in 2014. Prices are still trending downward, which impacts your fuel buying strategy for the year. You need to decide if pre-buying your oil is worth it. In recent years, you might have saved up to $2.00 a gallon by using this method, but this year's situation is quite different. 

Pre-Buy

You can take advantage of the current low market prices by pre-buying your heating oil for the winter. You will pay about the same amount as the current market price when you sign your contract. You will need to estimate your winter heating needs, which means researching what the weather expectations for your area are. You will have to pay upfront for your entire winter's needs or for however much you want to pre-buy.

This system comes with a few risks. First, heating oil prices could fall even lower, meaning you might actually lose money. Also, you need to choose a company in a sound financial condition because if they go out of business, you could be out of luck. However, the oil market is frequently volatile, so buying now means you will definitely save over last year's energy costs. Pre-buying is a gamble, and only you know if you can afford to take the risk.

Payment Plans

If you cannot afford to pre-buy and are afraid that costs may be more than you can afford, you may be able to take advantage of monthly payment plans offered by your oil dealer. You won't be able to pre-buy, but you will benefit if oil prices continue to drop. 

The good news for US residents is that oil prices have dropped significantly and may drop even further. Pre-buying your oil from a company likeFerrell Fuel Co Inc this winter will ensure lower prices than you paid last year, but may cost you money if prices do continue to decline. Still, you are looking at saving money compared to recent winters.

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