They have an idea how much you use.
These people that locked in for such a high rate are idiots. Did they not know that an election was approaching. Writing was on the wall for the price to start dropping dramatically.
We will be paying about $1.75- $1.80 per gallon when this is all said and done.
These people that locked in for such a high rate are idiots. Did they not know that an election was approaching. Writing was on the wall for the price to start dropping dramatically.
We will be paying about $1.75- $1.80 per gallon when this is all said and done.
Retailers bought oil at prices higher than the consumers were locking in at, as by Connecitcut's "prebuy law" they had to prebuy at least 80 percent of the volume they sold, he said.
Now, many consumers want to get out of those lock-in prices. But retailers can't renegotiate contracts with wholesalers, Guilford said. Thus, retailers can't renegotiate for their customers.
"Every prediction thus far is wrong, which is why I shy away from making predictions in these times," he said. "Who wouldn't be afraid with the predictions that were circulating? It's not that the people predicting were bad. They just got it wrong, which is easy to do in an extremely volatile market over which we have absolutely no control."
"As our advice on our Web site has said for three years, if you choose to lock in, you bought it and you own it," Guilford said. "The retailer has to honor the contract and the consumer has to honor the contract too."
But there is hope if a consumer feels his lock-in contract was not entered into properly or his hardship is too great.
Blumenthal said Wednesday that if a consumer locked in on a price, he must consider if he has a written contract with terms and conditions at the time he agreed to it by signing it. If he had agreed to a contract over the phone, prior to signing it, that is critical.
"If the contract was solicited over the phone and you gave a credit card to pay, you may feel you are bound to the high price. But you are not necessarily bound," he said.
Another critical point is that oil companies can only claim damages for a broken contract for what their actual costs of prebuying the oil from their wholesaler was, Blumenthal said. A retail oil company cannot charge a penalty charge on top of that, he said.
However, many contracts have specific damage conditions written in -- such as, if you break the contract, you pay $500, Blumenthal said. These are considered "liquidated damages."
http://www.newstimes.com/ci_10847631?source=most_emailed
Now, many consumers want to get out of those lock-in prices. But retailers can't renegotiate contracts with wholesalers, Guilford said. Thus, retailers can't renegotiate for their customers.
"Every prediction thus far is wrong, which is why I shy away from making predictions in these times," he said. "Who wouldn't be afraid with the predictions that were circulating? It's not that the people predicting were bad. They just got it wrong, which is easy to do in an extremely volatile market over which we have absolutely no control."
"As our advice on our Web site has said for three years, if you choose to lock in, you bought it and you own it," Guilford said. "The retailer has to honor the contract and the consumer has to honor the contract too."
But there is hope if a consumer feels his lock-in contract was not entered into properly or his hardship is too great.
Blumenthal said Wednesday that if a consumer locked in on a price, he must consider if he has a written contract with terms and conditions at the time he agreed to it by signing it. If he had agreed to a contract over the phone, prior to signing it, that is critical.
"If the contract was solicited over the phone and you gave a credit card to pay, you may feel you are bound to the high price. But you are not necessarily bound," he said.
Another critical point is that oil companies can only claim damages for a broken contract for what their actual costs of prebuying the oil from their wholesaler was, Blumenthal said. A retail oil company cannot charge a penalty charge on top of that, he said.
However, many contracts have specific damage conditions written in -- such as, if you break the contract, you pay $500, Blumenthal said. These are considered "liquidated damages."
http://www.newstimes.com/ci_10847631?source=most_emailed
You are still required to buy a certain amount of oil from them. Alot of times, the oil company will come out and service your oil burner for free when you lock in.
Would these people still be trying to stiff the oil company if prices went up to $5.00 per gallon?
What would the reaction be if one of these mom and pop oil companies tried to stiff a person for $5.00 per gallon when they signed for $4.00?
I think locked in prices are a risky practice for the oil delivery companies. If oil goes from $2 to $5, the customer will be there for sure. If it goes the other way, I'd fear the customer would vanish. Many companies here (CT) refuse to offer these deals.
I see no way the company can prove you didn't buy the oil elsewhere, or how much you used.
