How to Make a Pre-Buy
Eastern’s pre-buy plans allow you to pre-purchase your fuel needs for the up-coming heating season (October 1st through April 30th) at a locked-in price. Eastern will review your prior year's fuel usage to help you estimate the number of gallons you may want to pre-purchase for the next heating season. You may pre-purchase this amount of fuel (subject to a 500 gallon minimum) at the offered pre-buy price. To minimize delivery disruptions, you will be placed on an automatic delivery schedule for all pre-purchased gallons. Please note that there are limited quantities available for pre-buy and customers are accepted on a first come, first served basis while supplies last. Prices are subject to change and you should call to confirm the current offered pre-buy prices. To participate in a pre-buy plan, you will be required to sign and return to Eastern a pre-buy agreement which sets forth the legal terms and conditions. You should read this agreement carefully as it is a binding legal contract.
There are three options for payment under our pre-buy plans (each payment option has a different price for your pre-purchased fuel): Plans below are for #2 Heating Oil or Kerosene
Full Season Pre-Buy – You pay for your entire anticipated season's fuel at one time for the season from October 1st to April 30th. Payment in full is due at time of purchase. We are sorry - this option is sold out.
4-Month Pre-Buy – You spread out your heating season costs evenly over a four-month period by making four equal monthly pre-buy payments. The first payment is due at time of purchase. We are sorry - this option is sold out.
8-Month Pre- Buy- You spread out your heating season costs even more over an eight month period by making eight equal monthly pre-buy payments. The first payment is due at time of purchase. We are sorry - this option is sold out.
Typically, Eastern also makes available so-called “downside protection” for an additional cost under each of the three payment plans. With downside protection (which is optional), if Eastern's current retail price is lower than your pre-buy price at the time of delivery, you pay the lower price. Downside protection is payable at time of sign up and is a non-refundable fee. (For current downside protection pricing and availability, call 800-523-5237 and ask for the pre-buy department.) Downside protection can be your insurance against a lower market price.
Participating in our pre-buy plans is merely an option for you to consider. We do not recommend participation or discourage it – we simply offer it as an alternative method for you to purchase your fuel needs. The future price of fuel may go up or down for many different reasons. Consequently, it is possible that by participating in the pre-buy plan you could pay less than the current market price during the up-coming heating season but it is also possible that you could pay more. Our pre-buy programs are intended to provide you with an option for certainty as to your cost of fuel for the heating season – they are not a means of “beating” the market price for fuel.
If you chose to participate in Eastern’s pre-buy plans, it is very important that you carefully consider how much fuel you want to pre-purchase. This is a personal decision for each customer based upon whether they want absolute certainty as to the cost of their fuel for all of their anticipated needs or just a portion of those needs. Once you have committed to those pre-buy gallons, Eastern is required by law to secure your purchase which we have done by entering into contracts with our suppliers for those gallons at a fixed price. Consequently, the fuel you pre-buy from Eastern is non-refundable and you are committed to take delivery of that fuel at the pre-buy price. If for any reason you fail to take delivery of 100% of your pre-buy gallons, you will be required to pay Eastern a so-called “Shortage Fee” fee which is a per gallon charge for each gallon of fuel that is not delivered to you during the pre-buy heating season (October 1st through April 30th). The per gallon Shortage Fee is based upon the offered pre-buy price and will be set forth in your pre-buy agreement. If you fail to take delivery of all of your pre-buy gallons, then Eastern will calculate the Shortage Fee which is due and deduct this fee from the pre-buy funds remaining in your account (but if no funds remain you will be billed for and obligated to pay this fee to Eastern). If after deduction of any applicable fee, there remain pre-buy funds on your account they will be carried as a dollar credit for future purchases from Eastern at then current retail prices (i.e., your pre-buy funds will not be refunded). All pre-buy plans require you to be on automatic delivery through the entire pre-buy heating season (October 1st through April 30th) and automatic delivery will continue afterward until you request otherwise. If you use more fuel than the amount you pre-purchase, you will pay Eastern’s current retail cash price for any additional gallons. Because Eastern has secured your pre-buy gallons with contracts with its suppliers, you may not terminate your pre-buy agreement with Eastern or purchase fuel from another dealer while there remain pre-purchased gallons to be delivered.
The complete terms and conditions of your participation in Eastern’s pre-buy plans are set forth in the Eastern Pre-Buy Agreement. Please read this agreement carefully.
Thank you for choosing Eastern to meet your energy needs. We look forward to serving you this season. If you have any questions concerning Eastern’s pre-buy plans, please call 800-523-5237 and ask for the pre-buy department.
