Heating Oil and Propane Cap Pricing Plans: Reasons For and Against
Enrolling in a cap pricing program may be a good investment this year. With Irving Energy’s Cap Pricing Plan, you’ll pay no more than your capped price, allowing you to budget your household expenses more efficiently. And if prices go down, you’ll pay the lower price.
Reasons to Sign Up for Cap Pricing this Year:
We don’t know where prices are headed, and with all the market uncertainty, prices could just as easily climb or drop. If you’re worried that prices may go up, for an additional fee you can cap your heating oil or propane price and you’ll pay no more than your capped price. And if prices decrease, you’ll pay the lower price. This makes budgeting easier, because you’ll know the most you’ll pay for your heating oil or propane and will be able to set aside money ahead of time and not worry about rising prices. You pay for the peace of mind, just like when you pay for insurance on a major purchase. Last, if prices drop, then you will have some money left over that you can use on other bills or for something fun.
Reasons Not to Sign Up for Cap Pricing this Year:
Signing up for a cap pricing plan costs more since there is an added fee and you only benefit if heating oil or propane prices rise beyond the cap price. It costs more for the heating provider to offer it , because they need to purchase the insurance from another company in case heating oil or propane prices rise. It’s a real cost and they pass on this cost to the customer. The price will need to rise higher than the cap price and the cap fee for the consumer to benefit. If you aren’t worried about where prices are headed, then it’s better to save the money and stay on a variable price plan for your heating oil or propane.
Whatever you decide, Irving Energy encourages you to have all the facts and weigh the benefits so you can make a decision that is right for you. 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 Cap Plan and Payment Options.
If you have any questions and want to talk to a knowledgeable Irving Energy representative, feel free to give us a call at 1.888.310.1924. We’re here to help.
Posted on September 1, 2011