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| Price Protection • Frequently Asked Questions • Enrollment Form |
| Frequently Asked Questions |
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You may be wondering about our price protection plans. If so, you will find the answers to many of your questions below. And, if not, we will be glad to answer any other questions you may have if you contact us.
Questions You Might Have
Question: Why do I have to pay a fee for price cap protection? Answer: Like anything else that is a benefit, it comes with a cost. The price cap program is like buying insurance on the price of oil. To guarantee you won't have to pay more than a specific price per gallon in the upcoming year, we need to have a guaranteed maximum price that we will be charged for the oil in the wholesale markets. In short, we insure our purchases in the futures markets. The extra cost of this insurance makes up the price cap hedge fee. We've been able to save our customers many times the cost of the hedge fee. Question: Isn't the price cap just a waste of money? Answer: Not if you want predictability and peace of mind. Price cap offers security from uncontrolled price increases. Whether caused by supply disruptions, hurricanes or record-breaking cold temperatures, volatile oil prices are a problem the price cap has solved. This type of price protection is typically not available from suppliers offering a one-time delivery or "call-in" only delivery service. Question: Why should I pay for price cap now instead of waiting till later? Answer: Spring is the time when oil prices are at their lowest. Every day we track the price of oil that will be delivered next winter. Based on our 20-plus years of experience, we have learned that early spring usually offers the best(lowest-cost)purchasing opportunity for our customers. Winter heating oil prices tend to rise once summer arrives. Question: Why has the price cap ceiling risen so much this year? Answer: The costs of all forms of energy have risen dramatically. When you compare the wholesale price for heating oil last year to the price for the upcoming winter, it has risen 35 percent. So we have had to raise the price cap ceiling amount by about the same percentage. While the price of energy has risen over the past several years, our price cap program has saved the average customer about $2,075 on their heating purchases in the last five years. With everything going on in the world today, this program offers great value, savings and peace of mind. Question: Why shouldn't I just buy my oil from a supplier who charges less? Answer: We can provide a guarantee of security for the entire season. We understand that you may be able to purchase heating oil at a lower price per gallon on a given day. One-time or "spot" purchases may allow you to save a few dollars. Sometimes companies even offer special discounts to attract new customers. But over time, this has proven to cost homeowners more and provided fewer services. With Globe, you will enjoy the added benefits of guaranteed automatic delivery, choice of billing terms, repair services, trained delivery personnel and, most important, price protection guarantee future pricing - which saves you money. Question: I don't use much oil, so why do I need automatic delivery? Answer: One less thing to worry about - and it's free with price cap. While it is more efficient for us to make as large a delivery as possible, our number-one goal is to keep you warm and secure with stable prices. |
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