Frequently Asked Questions

Most Frequently Asked Questions On Price Protection Programs

Is it really a contract?
Yes. We agree to supply a specific number of gallons to a specific location at a pre-determined price for a limited period of time with a beginning date, expiration date, and specific payment terms. It is an agreement. It is a contract, and parties (both Holliston Oil and consumer) that breach could be found liable and subject to fines in U.S. Courts. Customers are obligated to accept delivery and pay for the oil they order in accordance with the terms of the contract.

Last year, my neighbor had a lower fixed rate than I had. Why?
We update our program pricing weekly. It is not uncommon for prices to go up or down $0.04 - $0.06 on a daily basis. A customer who calls in this week may get quoted a different price than one that had called last week. The price on each program is different.

What happens when the contract expires?
Your account remains on automatic delivery until you request a change (in writing) in your status. After the contract rate has expired, we continue to deliver fuel to your house at our daily market rate. With automatic delivery you will avoid the possibility of running out of fuel.

What happens if I run out of fixed/capped price gallons before the contract ends?
After we have delivered the quantity of contracted gallons you ordered, your account will remain on automatic delivery, and oil deliveries will be charged at our daily market rate. Our contract allows our customers the flexibility of choosing how many gallons they want to lock in (up to 95% of the prior year usage), but requires the customer to be on automatic delivery until the end of the contract. If you wish to terminate automatic deliveries after the contract has expired, you need to do so in writing, or by e-mail.

Last year I was paying my monthly budget payment simultaneously to overage, Can this be avoided?
Maybe!! Last winter was colder than normal. Many customers exhausted their budget gallons and also had deliveries of additional gallons. Customers that did not make their first budget payment in July were making budget payments into May and June. To avoid the possibility of having a budget payment due together with an overage invoice, we suggest you begin your budget payments in July and have the ten payments made by April.

Are fixed price programs always a good deal for the customer?
No, not always. Nobody can predict prices, they are a function of world events, you cannot expect that your locked-in rate will always be lower than the daily rate every single day of your contract term. In early 2014 prices rose dramatically. Customers with a fixed rate had the benefit of lower rates. A customer with a capped rate with downside protection will always pay the lowest rate.

Why should I consider a price program?
If you want to budget your oil purchase at a fixed monthly payment, you should consider a program. If you fear that prices will rise, and you cannot tolerate the risk of rising prices for heating oil next year, you should consider a program.

What happens if I have a credit balance on my account when the contract expires?
First of all, that is your money. We will leave it on your account; it can be applied to future deliveries, services or the following year’s budget.

What happens if oil prices fall during the term of the contract?
Fixed price customers will continue to pay the rate that they agreed upon until the contract expires, their price is FIXED. Customers who have a capped price, purchase Downside Protection. Their price will always be the lower of the contract price or the Holliston Oil Daily Market Rate.