Why we aren’t offering fixed price programs this year. Click here.

Why we aren’t offering fixed price programs this year

All of us are concerned about fuel prices continuing to rise. What many people don’t realize is that they could drop significantly as well.

The Federal Reserve has acknowledged that its increase in interest rates could trigger a recession. We need only look back to 2008 (see chart) to see a time when everyone was hyper-concerned about historically high oil prices, only to see them drop over $2 per gallon in a matter of months when a recession hit.

When that happened, many of our customers on fixed price programs were left paying much higher rates than their friends and neighbors. Many people thought we could lower the rates if we wanted to. But when we fix your price, we secure oil immediately at those rates. We can’t go back and undo it.

We don’t want to risk putting you, or ourselves, through that again. That’s why we offer a price cap option that protects you against prices rising but allows you to pay less if fuel prices drop. No fuel company can do that by itself — we need to purchase a type of “price insurance” from our suppliers and pass that cost along to you. If you want to make sure you are truly protected against price volatility, that is your best option.

We wish we knew how this all will play out, but no one has that crystal ball. We need to be concerned not just about prices but supplies as well. Please trust that we have been at this a long time, and count on us to do everything possible to ensure your family stays safe and warm next year.