To lock in or not to lock in…

Every summer our customers wrestle with whether to lock in to a fixed price program, a capped price program or pay our daily market rate for oil deliveries next season.

Below please find ten things you should know prior to making your decision.

  • It is your decision. Jamie Oil neither encourages nor requires any customer to lock in.
  • Your decision involves risk and some of the risk is yours.
  • Every year oil prices go up on some days and down on others.
  • Do not expect to “pick the bottom” of the market.
  • Jamie Oil employees have no idea what oil prices are going to do next year.
  • If you lock in and oil prices go up, you win. You save money.
  • If you lock in and prices fall, you lose. Locking in could cost you money.
  • Jamie Oil orders oil from our suppliers when you lock in, as is required by law.
  • Jamie Oil cannot get out of the contracts we sign with our suppliers, and we require our customer to fulfill their obligations to us.
  • If a customer chooses to lock in five years in a row, it is likely that the customer will lose money two out of the five years.