Propane is an efficient heating fuel, but its prices are volatile. If you rely on it as your primary heating source, you can end up paying a lot to keep your house warm when propane prices increase. By signing up for a price-cap plan with a propane dealer, however, you can save when the price of propane drops without paying exorbitant rates when the price goes up.
Price-Cap Plans Provide Safety and Savings
Many propane dealers offer price-cap plans, which provide both safety and potential savings. A price-cap plan locks in a maximum rate you’ll pay for propane for the plan’s duration, but it doesn’t set a minimum rate.
With this type of plan, you can have peace of mind knowing that you’ll never have to pay more than your plan’s cap when propane prices increase. Even if they increase beyond your plan’s cap, you’ll still only pay the maximum price set by your plan. Having a maximum price will make budgeting easier, as you can calculate the most you’ll have to pay for propane based on your price’s cap and your past usage.
Should propane’s price drop, however, a price-cap plan lets you take advantage of the lower going rate. There’s no minimum, so when propane prices decrease, you’ll also see a decrease in the prices you pay. You’ll still have to pay the same rate for any remote delivery fee or service charges that your propane dealer assesses, but you’ll save money on the propane itself. Any amount you’re able to save will be cash in your pocket if you budget for the plan’s maximum price.
Other Plans Provide Safety or Savings
When compared to other payment plans offered by propane dealers, price-cap plans’ mixture of safety and savings is unique.
With a fixed-price plan, you pay the same rate each month regardless of whether prices for propane increase or decrease. These plans provide peace of mind, because you know in advance precisely how much you’ll pay for propane. If propane’s price drops, however, you can’t take advantage of lower prices if you’re locked into a fixed-price plan.
Market-rate plans charge you the going rate for propane on the day that you have it delivered. With these plans, you can save money when the price of propane is low. There is no limit to how much you could end up paying, though, when prices go up.
If you use propane to heat your home, sign up for a price-cap plan with your propane dealer. Only these plans provide the right amount of safety and potential savings. For more information, contact Stony Propane Ltd or a similar company.