# Fixed-price contract

By Nick Bruzzi · Published 2026-07-08 · https://heatprice.com/glossary/fixed-price-contract

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.

## See also

- [pre-buy vs price-cap](https://heatprice.com/guides/prebuy-vs-cap-price-heating-oil-contracts)
- [Pre-buy](https://heatprice.com/glossary/prebuy)
- [Ceiling price](https://heatprice.com/glossary/ceiling-price)

Our content is AI-assisted and human-reviewed. Nick Bruzzi is the named editor responsible for what we publish.