Price Protection Programs
Price Protection Programs are available throughout most of the year.
Please
remember that offers for Pricing Programs are subject to daily market
fluctuations.
Frequently Asked Questions:
1.) What type of Pricing Programs are available?
Currently, we offer five different Pricing Programs:
PRE-BUY: Pay in advance for the entire heating season's consumption at a discounted rate.FIXED PRICE : Pay one set rate for the entire heating season regardless of fluctuations in the daily price.
PRICE COLLAR: Pay daily price, never to exceed the maximum ceiling price or fall below the minimum floor price.
PRICE CAP: Pay daily price, never to exceed the maximum ceiling price and receive unlimited downside protection (your oil price could fall lower as market conditions permit) for only $199.00. The $199.00 Price Cap Fee is subject to change as market conditions fluctuate. Please call our office for current pricing.
DAILY RETAIL PRICE: Variable rate based on the market price at the time of your delivery.
- The Pre-Buy Program requires a full up-front pre-season purchase of your average annual consumption at a discounted rate.
- The Fixed Price Program lets you enjoy a set price per gallon for your heating oil for the duration of your contract period, regardless of fluctuations in the daily retail price.
- The Price Collar Program ensures you will be priced no higher than an established ceiling price nor lower than an established floor price, thus establishing a collar price. If the daily retail price falls between the ceiling price and the floor price you will be charged the daily retail price on the day of the delivery.
- The Price Cap Program ensures you will be priced no higher than the maximum ceiling price and receive unlimited downside protection (your oil price could fall lower as market conditions permit) for only $199.00. The $199.00 Price Cap Fee is subject to change as market conditions fluctuate. Please call our office for current pricing.
- The Daily Retail Price Program gives you the option to purchase at a variable market rate. Given Santoro Oil's purchasing power, you can expect a competitive price and a guaranteed uninterrupted fuel supply. The open-market price is subject to daily changes.
2.) Why do some customers have a different fixed price than others ?
Price Programs are subject to change daily based on market fluctuations. Because we buy our oil as needed, after you accept a quote, we too are locked into that same price.
3.) Why is there a fee for the Price Cap Program?
Market volatility has caused oil prices to soar to an all time high. For the average sized household, Santoro Oil now incurs a $300 up front cost (based on heating oil prices as of Spring 2008) to receive the benefit of downside protection.We pass a portion of this insurance cost along to our customers.
4.) Which Pricing Program should I choose?
Due to the unpredictable nature of today's oil market, we are unable to recommend one price protection program over another. During any one year one program can out perform the other. The reason Santoro Oil has been offering several different price programs in recent years is to satisfy our customer's diverse financial situations and risk averseness preferences. For Example, a 400 gallon per year user is not as affected by the recent rise in prices as a 1200 gallon per year user would be.
***Please Read*** All price program offers are based over the NYMEX futures market. Contracted gallons will be based on exact quantities and dates, and will be calculated based on your average annual consumption for an entire heating season. With the fixed, collar, cap or daily retail price programs you may pay as you go or enroll in our smart budget plan.
Check out this link <RI State Energy Office> to see how our daily retail price compares to other RI companies. Please remember that discount dealers do not make less profit. They are able to offer lower prices because they do not offer the types of Protective Services that a Full Service Oil Provider like Santoro Oil Company offers.
Check out our <Service Plans> page to see our current service plan offerings.