GOOD NEWS FOR OIL HEAT CONSUMERS

Prices Down 50% Over Last Year - Lowest in Four Years

[Cromwell, CT] Fall is in the air and, predictably, consumers are beginning to turn their thoughts to the upcoming heating season. And the news is good: According to the Independent Connecticut Petroleum Association (ICPA), the trade group that represents more than 550 Connecticut-based independent oil dealers, heating oil prices are down 50 percent from last September. In fact, according to the American Institute for Economic Research, based on data from the U.S. Department of Energy, factored for inflation heating oil prices are at their lowest point in four years.

[Thank you to heatingoil.com]

While nobody can anticipate where prices will go from here, many consumers, especially those who locked in at higher prices last summer, are proceeding with caution this time around.  The ICPA attributes last season’s experience with heating contracts to self-proclaimed energy experts” like hedge funds and investment banks whose predictions that prices would escalate in excess of $200 per barrel by the end of the year drove consumers to lock-in their home heating oil contracts at artificially high prices - and the "experts" were wrong as markets declined by 66% and prices fell.

Moving into the new heating season, Gene Guilford, President & CEO of the ICPA, sees little reason to believe that energy prices will change significantly over the near term, given the nation's economic conditions, rising gas and oil supplies and reduced overall global demand, and, instead, advises homeowners to use common sense when choosing this season’s heating plan. “For 18 of the last 20 years, oil has been the most affordable home heating option for Connecticut homeowners,” says Guilford. “And, with today’s high efficiency heating equipment and consumer interest in making their homes more energy efficient, using oil to heat your home makes both economic and environmental sense.”  

Purchasing fuel. Unlike utility heated homes, Oilheat consumers have several options on how they may purchase their fuel and benefit from a competitive market place where heating oil dealers work hard to gain and keep your business.

Heating is sold several ways.  A fixed price contract is just that – it is fixed and does not change.  If you want protection on the upside risk, but want the benefit of markets that might also decline – a “cap” plan might be for you.  A Cap Pan sets the maximum price, coupled with a provision that allows your retail deliveries to float with prevailing market prices.  Cap plans tend to be more expensive than fixed price contracts as retailers have to buy additional “insurance” that allow for prices to decline.  Consumers also have the option to purchase fuel as needed or on a “will call” basis.  Purchasing fuel this way leaves ultimate control to the consumer.  The stability that contracts provide does not apply, but will call customer have the utmost flexibility when purchasing fuel.

No matter how you decide to purchase fuel the choice is yours!  With over 600 heating oil dealers in Connecticut to choose from, you are assured to benefit from a competitive market that wants your business.  Purchasing fuel from a reputable dealer who has a history of fulfilling their commitments to their customers is important.  You may search a list of reputable dealers who ascribe to the ICPA Code of Ethics, and so have a higher interest in protecting consumers, in your area by following this link > http://www.icpa.org/find.htm

It’s the Law! As of 2008, Connecticut law requires that all retailers who offer either Fixed Price or Cap Price plans have to secure from their wholesale suppliers or commodity brokers at least 80 percent of the volume sold to consumers at the time the contract was signed. This state consumer protection initiative ensures that oil dealers have the fuel on hand to fulfill their end of the contract.  Consumers should check with the Connecticut Department of Consumer protection to verify if their supplier is registered by go in to www.ct.gov/dcp or call 860-713-6160.

Read contracts carefully. Consumers are in the driver’s seat, but both retailers and consumers share the consumer's decision of how to buy.  Contracts protect consumers and local family owned heating oil dealers who serve them by clearly stating what each party is responsible for if a consumer decides buying oil under a contract makes sense to them.  Homeowners should make sure they understand what they are buying and how their preferred plan works. Good companies are always eager to answer any questions a consumer may have in advance of signing a contract. 

For more information about consumer contracts, energy conservation and related issues please see ICPA's Consumer Information website at http://icpa.org/ConsumerInfo.htm

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ICPA represents more than 564 Connecticut based independent businesses. These businesses employ 13,000 Connecticut citizens and supply the majority of our state's 1,600 motor fuels outlets and 350 heating fuels dealers. ICPA's offices are at 10 Alcap Ridge, Cromwell, CT  06416.  For more information about today's Press Release, contact Gene Guilford or Chris Herb.