Feeling trapped in heating oil lock-in

Copyright © 2006 Blethen Maine Newspapers Inc.

E-mail this story to a friend

Let the grumbling cease. That's our advice to those currently unlucky folks in Maine who are feeling victimized by low heating oil prices. They're in that contrary state of mind because an unexpected drop in the cost of crude oil has meant a decrease in the price of heating oil of 23 cents per gallon since Sept. 5 -- and the grumblers locked in their heating oil price way back in the spring or summer, when the prices were much higher and expected only to rise further.

It seemed like a smart move at the time.

But like any such lock-in program, the price to you stays locked-in whether it rises or falls for others. So we acknowledge that it must be painful to be paying more for your heating oil than others may be. Or to imagine that your oil dealer is making huge profits off of your attempt to save money. Truth is, your supplier locked in to a wholesale price at the same time you locked into your retail price -- so presumably, his profit is about the same now as it was then. He's feeling the pain, too.

But here's the good news. Or maybe bad news. Whatever it is, here goes: We've consulted our crystal ball and can promise you that, eventually (and quite likely even during this winter) prices will rise. When you're talking oil, it's axiomatic that what comes down goes up again.

So then, when prices approach and even pass the rate that you've been paying, you can feel superior once more, and like the wise person you once considered yourself to be. And we don't imagine you'll be grumbling then to your fuel supplier that the prices on the market don't match what you agreed to pay.