Market Price, Fixed Price and Capped Price

What’s the Difference?

At Southville Petroleum, we offer several options for purchasing your heating oil—but deciding which option is best for you is a personal question since each has its own pros and cons.

We’ve prepared a short summary of each option to help you decide what’s best for your family this winter season!

Market Pricing

Just like stocks on the stock market, heating oil prices fluctuate from day to day with no limit about how high or low they can go.

If you buy your fuel as you go at this market price, you will pay whatever the cost of fuel is that day. This means you can take advantage of falling prices without having to pay a fee—but if they go up, you’ll have to pay the higher price. 

Fixed Price Plan

Purchasing 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.

This fee-free option protects you from rising prices, but it also means we can’t lower your price if the market drops.

Capped Price Plan—New for Winter 2021!

A Price Cap limits how much the price of your heating oil can rise, but not how far it can fall.

This “downside protection” comes at a supplemental cost. All oil suppliers charge a fee for a Price Cap because it requires us to buy insurance from our own suppliers in case the market price drops; the fee you’re charged covers the cost of that insurance (there is no profit for us).

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:

Still have questions about what pricing option is best for you? Contact the pros at Southville Petroleum to learn more about heating oil delivery in Central Long Island, NY!