To buy or not to buy…to fix or not to fix?
The price upturn has started. It is a week earlier than I thought but it is here. Take a look at the average price graph from the last 12 months:
NOTE: this is based on 1000 litres delivered and does not include vat, therefore, if you usually take deliveries of 500 litres your average is approximately 3ppl higher at all times.
Near four year lows! Covered in an earlier blog the average price has plummeted over a 46 month period. It hit a low of 49.6ppl last week, Did it hit the bottom and begin to bounce? Probably yes! Over the next six to ten weeks the price has only one way it can go. I want to explain what you should do, but first why.
If YOU…were on a standard gas/electricity deal and Martin Money Saving Expert told you the price has to go up in the next few weeks, but you can fix now at around the lowest market average for four years – chances are pretty good you would fix.
If YOU…had a variable rate mortgage and the Governor of the Bank of England let it slip that interest rates must rise significantly – same scenario?
If YOU…did fix would you expect to fix at the lowest possible price anywhere across the market? Most people know that is simply not how fixed deals work.
If I…had been able to offer my members the option to fix their OIL for 12 months at around this market average a year ago I would have been crushed in the stampede.
I am offering that NOW...whether you need OIL now or not you can fix your price for the next 12 months at a price around a near four year low market average: you can pay upfront or spread the cost over 12 months, This is completely unique and the only way OIL buyers across the UK can do this, at a critical moment for Heating OIL. It is also possible to do this via a live, interactive, online platform. I expect to be crushed in this stampede!
What if…at some point the price goes down below this market average over the year? Same as with any fixed rate, that is the chance you take. My advice would simply be look at the evidence before you, read the previous blogs, and weigh up what knowing your fixed costs and having the peace of mind that you have secured your supply would mean to you. That is what fixing will give you.
No matter how much OIL you have or when you plan to buy next, we have a strategy:
- Just filled up or your tank is close to full: plan your next year’s ordering and forward buy NOW at the fixed price (see below)
- You must buy between now and mid-January: please buy your next delivery as a one-off NOW at a market low, then plan your next year’s ordering and forward buy NOW at the fixed price (see below)
- You do not intend to buy your next OIL again until mid-January or beyond: plan your next year’s ordering and forward buy NOW at the fixed price (see below)
Buying now at a market low: the fixed price cannot be at the lowest market price (covered above) so the perfect scenario is to buy the immediate OIL required now at a spot price and then fix the remainder of your next 12 months’ usage, Therefore, first please respond directly to Community Buying: firstname.lastname@example.org with your full name, contact details and postcode (in case we don’t already know you). We will message back the lowest market price and all the details of how you can order the OIL you need now. Then take the next step below.
To plan your next year’s ordering and forward buy at the fixed price: this is a two step process:
- We launch the online platform FRIDAY 14th November, so please think this through, do some homework and work out how much you would like to book, factor in if you would like to pay the total upfront or just the deposit and spread the remainder of the costs over the year. This is literally allowing you to plan YOUR ideal scenario for your own personal OIL use in a more advanced way than ever before.
- Then follow the links we will send you in follow-up emails or via Facebook and Twitter or simply click the word Follow which appears at the top of this blog and the update will come from here directly into your inbox.
What will the fixed price be? You only have one day left before you find out. Look out for the messages saying the site has gone live and you will be able to go online and access this service
What is launching Friday 14th November? A brand new, unique platform from which you can check the price in your postcode, order directly from and access the freephone number where you can get all your questions answered.
Your feedback: i have been overwhelmed this week with the amazing messages of support and very kind words about this development. For those of you who want this to be even more perfect, so do I! However, this really is such a huge development to make buying OIL much simpler and fairer and one from which we can create even more change to bring an archaic energy industry into the 21st Century.
As ever, any questions please email me: email@example.com