SPRINGFIELD, Mass. (WWLP) – With the cold weather on our heels, many people who heat their home with oil are wondering if it’s best to lock-in a price or take a risk paying the fluctuating market price.
The OPEC cutbacks and ongoing global conflicts are expected to affect the price of heating your home with oil this winter.
So what’s the better deal for the average homeowner?
Tim Noonan, Director of Sales at Noonan Energy in Springfield, told 22News, “It’s a very hard call. Prices have been coming down since May, until two weeks ago, they started to come back up. This week alone they’ve gone up twice.”
If you go choose the fixed price route, many companies require a minimum. Noonan Energy, for example, has a minimum requirement of 400 gallons and you have to pay up front. This could be a deal, unless the price of oil begins to drop.
While Noonan says he personally would lock in the price, you never know what the price of oil is going to do.
“It’s a gamble. I can remember a few years ago they bought it at 360 or 370 and the prices dropped,” he recalled.
Locking in a fixed price can be hard for people on a budget, because you have to pay up front. Right now, an average home using 650 gallons of oil can expect to pay around $3,000.
Currently, the price of oil is $4.79 per gallon, that’s up more than 45% from last year.