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Comparing Market Price, Fixed Price & Pre-Buy Pricing Plans

fuel bill options vermontDorr Oil offers several options for purchasing your heating oil, propane or kerosene—but deciding which option to choose can be confusing, because each option has its pros and cons. The option that works best in one year might not work well the next, because the price of propane is ever unpredictable.

Still, like any major buying decision, it pays to be informed. We’ve prepared a short summary of each option to help you decide what’s best for your family.

Market Price (AKA: Pay-as-you-go)

Just like stocks on the stock market, the cost of heating oil fluctuates from day to day with no limit about how high or low it can go. If you buy your fuel as you go at this market price, you can take advantage of falling prices—but if they go up, you’ll have to pay the higher price. 

Fixed Price and Pre-Buy Options

Purchasing heating oil in advance of heating season at a fixed rate locks in a price on all the gallons you pay for, regardless of when they’re delivered and no matter what happens in the market.

“Pre-buy” on the other hand is a special type of fixed price which is made before the season starts. This option lets you buy ALL the gallons you’ll need for the year ahead while protecting you from rising prices, but it also means we can’t lower your price if the market drops.

In Summary

As you can see, each price option has its benefits and risks, which makes choosing an option a matter of personal choice. To summarize:

Do you still have questions about what pricing option is best for you? Contact the pros at Dorr Oil to learn more about kerosene and heating oil delivery in Greater Manchester, VT!