Glossary termNo. 4 / 10
- Category
- Dealers & contracts
- Fuel
- Heating oil
- Source
- R.I. Gen. Laws
The maximum per-gallon price in a price-cap contract — the "cap." You never pay above it, but you can pay below it if the market drops.
The protection isn't free: it's bought with the cap contract's non-refundable upfront premium, so a ceiling only saves you money if prices fall enough to justify that fee.