Glossary termNo. 5 / 10
- Category
- Dealers & contracts
- Fuel
- Heating oil
- Source
- MA DOER
A contract that locks a single per-gallon rate for a set volume over the season — but, unlike a pre-buy, usually lets you pay on each delivery instead of all up front.
Like a pre-buy, it gives no protection if the market drops (you're stuck at the locked rate), and leaving early to chase a lower price typically triggers steep termination or liquidation fees.
Source: MA DOER — Heating Oil Contracts Guide.
Filed by Nick Bruzzi