Lock-in Time? (home, buying, bankruptcy)

[rossco17]

Hi - I'm completely new to Maine and home heating with #2 oil and the annual decision many make between prebuying and paying the market rate.

I have a friend who just locked-in for $1.89/gal and that seems like a pretty decent bet. But I also have friends who were locked in and paid > $4/gal all winter.

I called some oil companies today and many won't have their lock-in available for another 3-4 weeks. So my question is: 1) If I wanted to prebuy this year (and it seems like a good year for that what with the current prices and all) when is the best time to start shopping for lock-in rates?


Thanks for any help.

[Northern Maine Land Man]

Do it now if the dealer is a long term reputable business. Do NOT do it if the dealer is a one truck operation who parks the truck in his driveway. Several of those went out of business and declared bankruptcy when they could not buy oil at the rack price and make money. It was a gamble they took and lost. All their customers lost too.

Reputable dealers will lock in with down side protection for about 20 cents over the lock price. That way when the price goes down your delivery price goes down too. Paying $2.25 when your neighbor is paying $2.05 is a whole lot better than paying $4.49 when your neighbor is paying $2.05.