Oilheat FAQs

Here are some answers to frequently asked questions about Oilheat. If you have a question that we didn't answer here, please contact us. We'll make sure you receive an answer promptly.

Why are energy prices so volatile?
Do local dealers make more money when oil prices rise? And, do they time their deliveries for when prices are up?
How can I keep my fuel payments more stable so my budget doesn't suffer so much?
My next-door neighbor is paying a lot less for heating oil that I am. We use the same fuel oil company. What's her secret?
Why should I consider an upgrade?

Q. Why are energy prices so volatile?

A. There are several factors contributing to volatile energy prices:

Changes in worldwide petroleum demand, especially in developing countries
Variable conditions in production, refining and shipping
Conflicts in oil-producing nations keeping the level of uncertainty in world oil markets high
Speculators' guessing games on where energy prices will go next
Extreme or unusual weather conditions

Though we at BSOHA can't tell you now what will happen to energy prices tomorrow, we wish to emphasize that you don't have to go it alone. Luckily, you can take advantage of the many money-saving opportunities your local Oilheat dealer offers. With their full service capabilities and attention to your unique home comfort needs, your local dealer will deliver the maximum value for every energy dollar you spend.

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Q. Do local dealers make more money when oil prices rise? And, do they time their deliveries for when prices are up?

A. Your heating oil dealer absolutely does not make more money when fuel prices go up. Like you, when world prices rise, local dealers pay more for oil. The increased cost means they don't make any extra profit from the increased price consumers pay.

Moreover, local dealers do not deliver when prices are highest. They service their customers based on customer demands and needs, and regular delivery truck routes. They have no way of knowing from week to week what will happen with wholesale prices and have no control over the wholesale market.

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Q. I always seem to pay 75% of my heating bills during December, January and February. It's rather inconvenient for me because during these months I'm either spending a great deal on holiday gifts or paying off my holiday bills. How can I keep my fuel payments more stable so my budget doesn't suffer so much?

A. A budget plan is for you! When you sign up for your local Berks-Schuylkill County Oilheat dealer's budget plan, you can gain more control over your budget and say goodbye to unexpected, high energy bills. A budget plan takes your yearly fuel costs and divides them into equal monthly payments. So, no matter what Mother Nature sends our way, and no matter what happens to energy prices, you'll have the peace of mind and convenience that comes from knowing exactly what your family budget is each month. Without a budget plan, your payments can bunch up when it's least convenient, such as when you're buying those holiday gifts.

In case you're wondering how your Oilheat dealer figures out how much you pay each month, they examine your past usage to forecast your payments. At the end of the budget season, your dealer will either credit your account for the following year or bill you for the remaining balance due.

Don't worry about your energy bills another day ... Oilheat dealers can help you manage your budget too.

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Q. My next-door neighbor is paying a lot less for heating oil that I am. We use the same fuel oil company. What's her secret?

A. There's no secret. Your neighbor is most likely enrolled in a price protection plan. Fuel prices are subject to things like supply and demand and changing world events. And while your local Oilheat dealer can neither predict nor control these things (hard as they try!), they can offer you the best way to protect your family budget: price protection.

There are two types of price protection plans: price cap and pre-buy. When you enroll in a price cap, you'll agree not to pay more than a certain price for the entire heating season. You'll have the security you want because you will never pay more than your capped price. And if prices go down, your delivered price will also fall. With a pre-buy plan, you purchase your fuel in advance of the heating season at the current price. A minimum purchase is required. Enrollment in both plans is FREE. Please call your local Oilheat dealer for more details on how to "lock in" your fuel price so you'll never have to worry about price increases.

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Q. My neighbors just had their Oilheat system upgraded. They claim the upgrade will save money. My system is about twenty years old and it's still working pretty well. Why should I consider an upgrade?

A. Studies show older Oilheat equipment is not as effective as more-efficient modern units, which perform at 85% and above. Locate a local Oilheat dealer and make an appointment to have your system evaluated. After thoroughly inspecting the equipment, the service technician may suggest an upgrade. A new system will reduce maintenance and repair costs, lower your heating bills, and provide greater peace of mind ... while offering you a return on your investment in a few short years. For example, according to analysis of annual savings provided by the Consortium of Energy Efficiency, if you install a residential warm air furnace at 90 percent Annual Fuel Utilization Efficiency (AFUE) vs. 80 percent AFUE, the estimated annual savings in energy costs is $115 with a simple payback of 2.6 years!

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