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Commercial Price Protection Now Open

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Will Heating Oil and Propane Prices Drop this Summer?

Price protection is open and customers are calling us to inquire about locking-in their heating oil and propane prices.  For customers who locked-in last year, the first reaction we are getting is “Wow.  Propane and heating oil prices are much higher this year than last year.”  If you haven’t been following oil prices, the 30%+ increase since last summer can come as a shock.

Why have heating oil and propane prices gone up?

Crude oil prices rose to over $110 in April due to real and anticipated economic growth from around the world, concerns of oil supply from the Middle East, and speculation.  Since then prices have fallen to around $95 a barrel at the time of writing.

Where will heating oil and propane prices head this Summer?

Customers want to know what we think will happen to heating oil and propane prices this summer.  Will they go down?  Will August be a better time to lock in?

Many customers believe prices will fall, and that’s certainly a possibility.  Unfortunately, not even the most well regarded experts know where prices are headed.  Heating oil and propane prices may continue to go down this summer or they could go up.  There constantly seem to be surprises in the news that affect heating oil and propane prices (e.g. emergency release of crude oil inventory reserves, lower than expected OPEC production, lower than expected growth of the Chinese economy, etc).  Prices change with every new development and it’s hard to keep track of them all.

If you are interested, here are some factors that could make heating oil and propane prices go up or down this Summer.  For a more complete list and a very detailed understanding of what makes crude prices go up and down, you can go to the US Energy Industry Administration and check out their extensive information on factors affecting crude prices.

What Will Make Prices Go Up or Down?
Higher PricesLower Prices
• Higher than expected world economic growth
• A weaker US dollar
• Unrest in the Middle East
• Decreased OPEC production
• Lower than expected world economic growth
• A stronger US dollar
• A stable Middle East
• Increased OPEC production

Whether you choose to lock-in your heating fuel price or stay on a variable plan, you can take comfort in knowing that Irving Energy will provide you with the resources and information you need to make the best possible heating decision this heating season.

Check out our articles on heating oil and propane price protection consumer opinions, or answer the questions: is heating oil and propane price protection right for me? or what is heating oil and propane price protection?

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Propane and Heating Oil Price Protection Plan: The Season is Upon Us

Heating oil and propane prices are at their highest levels since 2008 and no one knows where prices will head from here.  With all this uncertainty, it’s not too early to start thinking about the next heating season and whether or not to sign up for a propane or heating oil price protection plan.

Irving Energy wants you to make the choice that is right for you.  To help you make a smart choice, we will be sharing what we know about price protection and putting the power of information in your hands.  We’re providing different points of view and encouraging you to make up your own mind.  Warm to the facts and decide for yourself.

 

Here are some resources to help you make your decision:

  • You can visit our price protection section of our website to get the full scoop.
  • We’ll keep on adding to our PPP blogs, so come back to our blog for more articles.
  • We’ll also be asking our customers, like you, what their plans are for this year.  Stay tuned for that.

Deciding whether to sign up for a propane or heating oil price protection plan is a big decision.  Take comfort in knowing that Irving Energy will provide you with the resources and information you need to make the best possible decision this heating season. View our heating oil and propane price protection plan and payment options. If you have any questions and want to talk to a knowledgeable Irving representative, feel free to give us a call at 1.888.310.1924.  We’re here to help.

Check out our other articles on price protection, read heating oil and propane price protection consumer opinions, or answer the questions: is heating oil and propane price protection right for me? or what is heating oil and propane price protection?

 

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Propane and Heating Oil Fixed Price Contracts – What Happens if the Price Falls?

You locked-in your propane or heating oil price last July, 2010 and since then prices have risen over 30%.  Good decision.  Now you’re looking to sign up again for the 2011/12 heating season.  Prices are high and you are concerned about what happens if prices fall?

If you purchase a fixed price contract, you’re signing a legal document.  As part of the contract you are required to take full delivery of the gallons in the contract.  When the market price drops below your fixed price, some consumers believe that the heating company is making a big profit.  This is not true.  Heating providers are required by law to secure propane or heating oil they sell at a fixed price so they can honor their commitments to their fixed price customers through the season. Therefore, even if the market price drops below the fixed price, the heating company is in the same boat as you – bound by the price they locked-in at when they purchased your gallons. When signing up for price protection, you should review the contract in detail and if you have any questions, you should talk to your heating provider and ensure you get clear answers.

If you are very concerned about the price dropping, then you can select variable pricing.  Variable pricing allows you to get the market price on the day of delivery.  Or, you can select downside protection.  For an additional fee, if the price of fuel increases you will pay no more than the fixed price.  But if the price of fuel decreases, you pay the lower price.

Deciding whether to sign up for a propane or heating oil price protection plan is a big decision.  Take comfort in knowing that Irving Energy will provide you with the resources and information you need to make the best possible decision this heating season. View our heating oil and propane price protection plan and payment options. If you have any questions and want to talk to a knowledgeable Irving representative, feel free to give us a call at 1.888.310.1924.  We’re here to help.

Check out our other articles on price protection, read heating oil and propane price protection consumer opinions, or answer the questions: is heating oil and propane price protection right for me? or what is heating oil and propane price protection?

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Is Your Heating Oil or Propane Fixed Price Contract Safe

Almost every season we hear about a heating fuel company that goes out of business, leaving its customers out in the cold. This situation is especially troubling for customers that pre-purchased their heating oil or propane since they will not receive the heating fuel for which they paid. And, they will have to buy more heating oil or propane at current market prices from another heating company.

 

 

How can you be sure that the heating company you give your money to will honor the contract or be in business through the heating season?

Some U.S. states require heating fuel companies to secure the heating fuel they sell to consumers through price protection programs. When a customer locks in 1,000 gallons of heating fuel at a fixed from a heating fuel company, that company should also lock in those gallons so they are available to the customer during the winter at the agreed upon price.

Be sure to do your homework!

If you have any concerns at all, you should find out who is behind the heating company and what their reputation is. Remember, it’s your money and you have the right to know it’s safe. Here are a few things to know before securing your contract:

  • Are they a professional run company with a good reputation?
  • How do they manage the risk of their price protection program?
  • Have you checked the Better Business Bureau (BBB) for any complaints?

Irving Energy has honored its commitments to customers since 1924. lrving locks in its price for heating oil and propane when you lock-in with us. So you will never have to worry if your pre-buy contract is safe, because it is. If you have any questions and want to talk to a knowledgeable Irving representative, feel free to give us a call at 1.888.310.1924.  We’re here to help.

 

Find out if other homeowners plan to lock in their heating oil or propane price this year. View our heating oil and propane price protection plan and payment options. And, check out our other articles on  price protection or answer the question: is heating oil and propane price protection right for me?

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