As everyone is well aware energy prices are extremely volatile and unpredictable. These volatile markets mean greater risk for you, our customer, for Coan Oil, and for our suppliers. There is no guarantee that locking in a price plan will be in your best interest. You may, in fact, be better off with the daily posted price. However, we understand that each customer has different needs and are offering you these protection plans should prices go up or come down.
Here is a detailed look at our available Price Protection programs:
The Coan SRP Cap Price Plan provides a maximum price with the opportunity for a lower price if the market moves down. Our cap price program means you won't pay anymore than the max price per gallon, and may pay lower, if our daily posted price is lower on the day of delivery.
Pros - If the price of fuel goes up, you are protected by the capped price; if the price of fuel goes down, you will receive the lower price thanks to downside protection.
Cons - There is an affordable and reasonable fee associated with this plan.
In order to give you a Cap Price Plan, we have to purchase your protection in advance. Due to the volatility in the market, we must have your signed commitment before we can commit to our suppliers. You will be charged a fee to secure your capped price, based on the number of gallons protected.
Our advisors have suggested prices could move significantly lower. They also say prices could move higher. The fact is nobody knows! To reduce this uncertainty, we do wish to offer you the Coan Pre-Buy SRP. With this option, you lock in a set price for a specific number of gallons that you predetermine; making one full payment.
This plan also offers an optional Downside Price Protection. Purchasing downside protection means that your price per gallon will be either the Coan posted price of the day or your locked-in price, whichever is lower on the day of delivery.
Pros - You are protected from increasing fuel costs. The risk of inflation is eliminated, and you make one payment upfront and no payments during the heating season.
Cons - Since you are locked into a set price for your agreed-upon gallons, you will not benefit should fuel prices decrease.