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EZ Pay with a Price Cap: We will spread your annual fuel costs over 10 months, billing you at either a predetermined price cap or our current retail price, whichever is lower on the day of delivery. This protects you whether prices go up or down.
An enrollment fee is charged for this upside and downside price protection. This is necessary because our suppliers charge us a hefty premium for the purchasing flexibility that allows us to lower your price when market prices fall.
Our ability to offer fuel at a capped price is based on the purchases of fixed price futures contracts, but involves one extra, important step.To guarantee that your price won’t go above a certain price, but can go down if market prices fall below where they were on the day we bought the fixed price contracts, we also purchase “futures options". These cost us more per gallon, which, we in turn add to your cost, but the “price insurance” provided by these options makes the cap work.
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