What is a pre-buy contract?
A pre-buy contract is a budget planning tool, not a guaranteed way to save money. It sets a single price for the fuel you will use during the heating season, regardless of price swings.

Should I pre-buy my fuel?
OEP cannot recommend what to do - each householder's situation is different. However, here are some things you might think about when making a decision:
a) Do you believe the price of fuel is likely to rise or fall during the heating season?
b) Can you afford to pre-buy all the fuel you expect to need?

If the price of fuel falls below my pre-buy price, will the dealer lower my price?
No. The dealer made a contract with his or her supplier to purchase the fuel at a certain price. Lowering the price to you would cause the dealer to lose money.

Is there any way I can get fuel at a lower price than what I pre-paid?
Perhaps. Some dealers offer a price cap, also known as "downside protection." The cost for this option is added onto the standard pre-buy price but you get the fuel at the lower of: a) the standard pre-buy price, or b) the regular price on the day of delivery to you. That means your price could be lower than what you pre-paid but it will never be higher than the standard pre-buy price. Talk to your dealer about downside protection and what it would cost.

How likely is it that the price will fall during the heating season?
There is no way to predict this.

How can I be sure the dealer will actually deliver the fuel I pre-bought, and at the pre-buy price?
New Hampshire law requires the dealer to have contracts with suppliers for the fuel, and the ability to pay for fuel sold in pre-buy contracts.

Should I change fuel dealers in order to get a better pre-buy price?
Some people do, some do not. Some householders consider overall dealer reliability and quality of service in addition to price when making such a decision. OEP cannot recommend what is best for you.

I want to manage my fuel costs but can't afford to pre-buy. What can I do?
Many fuel dealers offer budget payment plans that spread heating costs more evenly over the course of a year. Check with your dealer for details and about other possible payment arrangements.

A final note on preparing for the next heating season:
The first item in planning for the next heating season should be to make your house as thermally efficient as possible and to be certain that your heating system is properly cleaned and tuned up. Proper heating system maintenance could save you up to 20% on heating fuel bills. For more information on lowering your heating bills, go to Winter Energy Costs.