An oil company that offers discounts could seem like a fantastic bargain when selecting the best heating oil supplier for your home. However, if you choose a bargain supplier, you can end up out in the cold and have to pay a fee. The majority of service agreements take the form of yearly contracts. 

Service Agreements

The best way to get discount heating oil is to sign a service agreement. These contracts offer you guaranteed emergency service and regular/automatic delivery. They usually last a year, and your boiler oil services will be discontinued if you don’t keep up with them. In addition, full-service contracts usually require regular maintenance, evaluation of your heating equipment, and repairs. Some service agreements even include substantial discounts for on-time payments.

If you’re considering a discount heating oil company, review their terms and conditions of service. Before signing a contract, ensure you understand their services and decide which ones best suit your needs. The price of oil is also a factor to consider. 

Fixed Price Contracts

Purchasing discount heating oil from a dealer such as diesel fuel service Bergen County, NJ, with a fixed price contract has many advantages, but it can also have disadvantages. For example, customers who sign up for such agreements may end up paying more than what the market price will be in the future. Also, the contract is not breakable if the prices rise, which means that they will lose out on lower prices but will also be rewarded with higher prices. Other types of discount heating oil contracts include “pre-buy” programs. Unlike the other plans, a pre-buy program guarantees that a predetermined price will always be in effect. The contract will last as long as the customer purchases the full amount. 

Cap Price Contracts

There are several ways to find the best deal when it comes to discount heating oil. The first is to look for a cap price contract. These contracts are more complicated to manage than fixed-price contracts and often require a set-up fee. Therefore, you should check with several dealers before signing one. A cap price contract allows you to pay lower than market prices, but you’ll have to continue paying the cap price until the contract expires.

Many oil companies will try to sell consumers a capped price agreement, or “celling price,” to lock in a price for the winter. But this approach is not as good as it sounds. The problem with cap price agreements is that they don’t guarantee you will always pay the agreed-upon price. 

Pre-Buy Programs

Whether you need to heat your home or keep your electricity bill low, there are many benefits to signing up for pre-buy programs for discount heating oil. These programs allow you to lock in a discount price for up to 18 months. You can also lock in a price that won’t fluctuate throughout the heating season. This is ideal for those concerned about future price fluctuations who want to lock in their heating oil costs for the entire season.

These programs are often free for consumers but require members to sign a service contract. 

Budget Plans

If you’re looking for a way to save money on your winter heating oil bill, consider using a budget plan. These plans will lock you into a set price per gallon, regardless of whether you are paying retail or a lower rate. However, these plans do require a one-time enrollment fee and come with other benefits. In addition to discount heating oil prices, they offer the added advantage of prompt payment discounts.

These plans typically run from September to August, although you can sign up anytime. They help you set a ceiling amount for the heating oil payment and allow you to take advantage of lower prices while you’re paying it off. This way, you can take advantage of lower prices without worrying about high payments.