So it turns out the expert WERE right in predicting a big price drop a la 2008. Prices are finally catching up with supply and demand but it took the downfall of several European countries and the crash in value of the Euro to do it.
We welcome a new fuel dealer to Our Town Energy Alliance, Lampron energy of Gorham Maine. They cover western Maine and eastern New Hampshire. Presently, they have the best fixed pricing of any of our dealers at $2,599/gallon. Fielding Oil & Propane is next at $2.69/gallon. Incidentally I am happy to report that, Fielding's, who joined us last year has had the best rack plus pricing of any dealer over the last twelve months. Their $1.98 prebuy LAST YEAR was the also the best price of any dealer. Eastern was second at $1.999. Member comments have been uniformly high.
Eastern's Oil pre-buy was early; we bought at $2.79/gallon after the first big drop and when prices started moving upward again. Knowing that there was a 50/50 chance of the prices dropping again, we only bought half of what we planned. When we feel that prices have bottomed out we'll buy again and blend the second buy with the first. At current market, we hope the blended price will be in the $2.65 or under range. Actual price will depend on prices at the time we buy. All those who bought the oil at $2.79 will be set up at the new blended price and receive a credit for the difference.
Once again, for about the third year in a row, we are having problems coming to terms with Irving on price. Their pricing is currently running about 20¢ per gallon higher than Eastern's, 40¢ above Lampron's and is unacceptable. We hope that, as in past years, the will eventually pare down the price offered to us if we say no long enough. But we are concerned that if they don't move soon, we'll lose the current buying opportunity.
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- Our Town Energy Alliance was founded in November, 1999 by the Barraford's as a community service for senior citizens. Those 74 members told all their friends and neighbors and we had almost 1000 members by the end of 1999. In 2000, we made the organization independent. From the 74 original members it’s grown to its present 2010 membership of 17000 plus households, schools, towns and businesses through “word of mouth” OTCC members pay an annual membership fee (starting at only $25 per year) and can then take advantage of significant discounts on services and fuel purchases. Our Town Energy Alliance gathers this information from all of our members and uses that volume buying power to secure discounted fuel rates from leading area fuel providers including Irving Oil, Eastern Oil and Propane, as well as other fuel providers. Once the fuel prices are secured, we notify members of the prices. They can take advantage of purchasing their fuel at the discount rate directly from the fuel provider. But they are not obligated to accept the bid price. To take advantage of the program, you must sign a contract with the dealer.