Cubby Heating Oil Pricing Options

Date: October 30, 2018

The unpredictability of heating oil pricing makes it difficult to determine the best way to pay for your oil in a given year – which is why we offer two options for doing it. In this blog post, we’ll explore those options in greater detail.

Market Price vs. Price Cap

When it comes to choosing a way to pay for your heating oil, the most important factors to consider are ease and risk. At Cubby, we offer two basic ways to pay for your heating oil: market price and price cap. Each has its own advantages and disadvantages, as you’ll see below.

• Market Price – The market price for heating oil changes from day to day, with no high- or low-limit – you’ll simply pay our regular, competitive daily price for your oil. If you choose to pay market price, you’ll benefit from a drop in oil prices without paying a fee – but you’ll also pay more for your heating oil if the market rises.

  Market price is the option that most of our customers choose: it’s easy and carries no commitments or costs – but the price you pay is less predictable than with our Price Cap option.

• Price Cap – With a Price Cap, you’ll be protected from rising market prices while still being able to take advantage of price drops as they occur; you will, however, pay a fee for that benefit (the Price Cap fee covers the cost of insurance to protect against falling prices when we purchase oil from our suppliers for the season; we don’t profit from collecting it).

  While a Price Cap might save you money, this is not a guarantee. A Price Cap does, however, give you more stability and protection against the heating oil pricing spikes that could occur during a period of high demand for fuel.

So summing up: If you want to keep things simple, choose the market price option. If you want more predictability and don’t mind paying a fee, a Price Cap could be best. If you’re already on a pricing plan that you’re comfortable with, we recommend sticking with it rather than trying to jump from one program to the next trying to time the market.

Whatever pricing plan you choose, we highly recommend that you take advantage of the convenience of the Cubby App for 24/7 access to your account information. Available for your iPhone, iPad, or Android device, the Cubby App gives you access to up-to-date billing information plus the ability to view service schedules, research pricing, payment, and service plan options, and much more. Download the app on iTunes or at Google Play – and let us know what you think!

Need help in choosing a heating oil pricing plan that’s the right fit for your family? Contact us today – we’re happy to discuss your options!