Heating Oil: Payment Options

Related to delivery options is the payment option. There are three basic payment options, Billing, COD and Budget. The dealer you are assigned will outline their terms and conditions. We will also outline them for you in our Welcome Letter.

Billing can give a consumer up to 30 days to pay their oil bill. Customers may take an additional 2 to 6 cents off their bill if they pay within 5 to 10 days. This is called the Prompt Payment option. The credit portion of our membership form needs to be filled out in order for a dealer to do a credit search in order to open a credit account. We do nothing with your credit information except relay it to the dealer and keep it in our dealer file.

COD means Cash on Delivery. Often cash is required. Most dealers however will accept personal checks. Some also accept credit cards. The dealers determine the requirement. The advantage to COD is that the additional 3 to 5 cents have already been discounted from the bill. The disadvantage is that you need to have a credit balance with the dealer, or be present with cash when the delivery is made.

A Budget Plan customer is the most efficient option available. The dealer considers your annual consumption and establishes what they feel will be a fair average price for the coming winter. Then they come up with a total cost for the season. Most Budget Plans call for ten monthly payments. Oil is delivered automatically and charged to your budget account.

Twice during the season, Budget Plans are reviewed to see if you are paying too much or not enough. The dealer will then adjust your budget payment accordingly. We have input with the dealer for the first adjustment in October. The dealer has the option in January to adjust their budget figure. Often, the budget amount turns out to be more than what you actually spend. You may end up the year with a credit balance that the dealer will happily return to you or they may apply it towards your next year’s budget plan. Occasionally, you will have a final larger payment to make as well.

Using a Budget Plan makes using oil most like a regular utility like your phone or water bill. Your cost is fairly even and there are no nasty huge oil bills to sneak up on you. It also helps our dealers plan, reduce their costs and become more efficient. WE STRONGLY URGE ALL MEMBERS TO CONSIDER ESTABLISHING A BUDGET ACCOUNT with our dealers.

Budget plans are seasonal and dealers try to have them established during the summer months. If the season has begun, you may have to pay a large initial payment to catch up.