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 Cap Pricing Plan
Sign up for Cap Pricing. If you aren't currently a customer, become a customer, and the cap pricing
option will be available to you. |
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What is Cap Pricing?
With Carroll's Cap Pricing program, you can have the peace of mind of knowing that you will not pay more than our
cap rate for your heating oil. If the oil market inflates drastically, you won't have to worry about surprises on your
heating bill.
You decide how many gallons you would like to insure, or "cap", and then you pay a per-gallon insurance fee those insured
gallons. With each delivery of the insured gallons, you pay no more than the cap price. If the market price is lower than
that cap price, you will pay the lower of the two.
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Frequently Asked Questions:
- Which way are prices likely to go?
We wish we could predict, but it's like trying to predict the stock market. Often the oil markets are driven by pure speculation without a real fundamental basis for their up and down movement. Last year was a perfect example.
- Which pricing option makes more sense?
There's no one type of program that always works out best. Some people like the cap because it gives them insurance against the worst case scenarios. But many others are less concerned about a further run up in prices, especially because the world wide recession is suppressing oil demand. In two of the last three years, our customers actually did better just paying our regular market rate with no cap. It's really up to you and how you feel most comfortable.
- Do I have to make a decision now?
No, you can enroll any time. However, if you wait and oil prices rise, your ceiling and delivery price will be higher. On the other hand, if you enroll in a price cap now, and oil prices drop, you won't get a lower ceiling, but your actual delivery price will still go down. So if you want to get price protection, it probably makes sense to enroll now rather than try to time it just right.
- How do I secure a price cap?
You can go either call us at 410-235-1066 or go on line www.carrollfuel.com. Once on the web site, you can log in as a customer using your account number and phone number (or password if you've already set it up) and click on the highlighted option for price cap.
- Why is there a fee for the price cap?
We do not provide price protection on our own, and do not speculate on which way prices will go, we purchase price insurance through our suppliers. Unfortunately the cost of the insurance has risen dramatically over the last few years. For those customers who wish to purchase protection we must buy the insurance to make sure you are covered. Because of this cost we must charge a fee. This fee is non refundable but can be transferred to the new owner of your home if you sell your home.
- Some companies say they'll give a price cap for "free." What's the reality?
The "free" deal is a deceptive gimmick. There's no way around the fact that providing a real price cap requires an oil dealer to buy a type of price insurance from suppliers. What some companies do is like the airlines who publicize a good rate, but then charge you for food, baggage, headphones and booking fees. They just build it into their margin. When oil prices drop, they don't lower your price nearly as far or as fast as we do. This year, oil companies with "free caps" charged as much as 60 cents more per gallon than us when prices were falling. There have been other companies that have defaulted on their price caps when prices went up.
- Do you have an "early termination fee?"
No, we don't feel the need to handcuff our customers to us. However, those same companies that give a "free" price cap normally have early termination fees of $400 or more. You can imagine why they need to do that.
- Why is the price cap participation fee based on the amount of oil I want to protect, rather than a flat fee?
It's fairer for our customers. We want to make sure you only pay for exactly how much price protection you need, and no more. We get charged for the price cap by our suppliers based on how many gallons a customer buys.
- If I get a price cap, how much do you think I should cover?
It's really up to you. Most people have been covering around 90% of the oil they used last year, because it was colder than it has been in a while.
- What happens if I use more oil then I cover?
You'll pay the market rate in effect at the time.
- What happens if I protect more gallons then I use. Can I get a refund?
Unfortunately no. We have to buy the insurance up front. That's why you should only choose what you feel comfortable with.
- Is a cap protection better than a fixed price program?
We saw again his year how dangerous a fixed price can be. It can't go down. And even though people think the price is low now, there's nothing that says it can't drop 30 or 50 cents per gallon from here. So if you want price protection, a cap is a much smarter move, even though it costs money.
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