Budget Payment Plan Customers Q&A

Q: What causes propane and heating oil prices to fluctuate over time?

A: The largest influences on the price of home heating products are the wholesale prices of the raw materials that go into them, crude oil, as well as natural gas in the case of propane. All these energy products are traded on commodities markets, which fluctuate like the stock market. Seasonal price fluctuations and inventory and transportation issues also contribute to short-term price variations. Steady increases in demand and the unsettled situation in many oil-producing parts of the world drive crude oil and natural gas prices to high levels.

Q: How can I keep my home heating costs down?/How can I manage my energy costs more effectively in times of increasing costs?

A: As prices rise the best way of holding the line on energy costs is to use less energy through conservation and remain on one of our budget payment plans.

Q: What can I do to conserve home heating oil and/or propane?

A: Home Heating

• Tune up your heating system with scheduled cleaning and maintenance
• Change your furnace filter monthly.
• Consider investing in programmable thermostat that can save money by lowering your home's temperature at night or when you’re not at home.
• Cut down on drafts by caulking and weather-stripping around windows and doors.
• When purchasing a fireplace, select one fueled by propane. Propane fireplaces burn more efficiently than wood-burning models and distribute heat more evenly throughout the room.

Hot Water

• Turn down your hot water temperature. You can save more than 10 percent on your water-heating bill by turning down your water heater from the standard 140 degrees to 130 degrees.
• To extend your water heater's life and increase energy efficiency, drain it every six months to remove lime deposits and sediment.
• Install flow-restricting showerheads. You can reduce hot water usage by up to 50% without affecting shower pressure.
• Repair leaky faucets. A hot water leak that fills a coffee cup in 10 minutes wastes 3,200 gallons of hot water per year.

Appliances

• Invest in energy-efficient appliances. Gas ranges with electronic ignition systems will use 40 percent less energy than a standing-pilot system.
• Be sure that all burners are burning with a blue, cone-shaped flame. A yellow flame indicates clogged air inlets or burners that need adjustment.
• Check the seal on your oven door. Gaps or tears in the seal will let heat escape and waste energy.

Q: Why do companies in the same area charge different prices?

A: Propane and heating oil are competitive businesses. At any time, you may find people who are paying higher or lower prices than your dealer is offering. The difference often depends on a number of factors, which often include:
• The amount of resources the dealer spends on ensuring quality service, safety and reliable supply.
• The payment terms, delivery options and equipment repair service they offer.
• The ownership of storage tanks.
• The amount of fuel that a customer uses.

Q: Do distributors make more profits when prices go up?

A: No. Because the wholesale prices of heating oil and propane are set by large suppliers, distributors like Suburban have no control over wholesale prices. When wholesale prices rise, we pay more for what we purchase and at times there is little choice but to pass some of the increases on to the consumer.

Q: Why do prices sometimes spike?

A: Propane and heating oil prices do occasionally spike, increasing far beyond normal fluctuations. The main reasons are logistical. It’s difficult to increase supplies quickly during the peak heating season. The remaining product that is available from suppliers increases in price. These higher prices must often be passed on to consumers.

Q: Is there currently a shortage of propane or heating oil?

A: No. Suburban has taken the necessary measures to ensure that we have access to adequate supplies to meet all of our customers’ needs for propane and heating oil now and going forward.

Q: Does Suburban wait to deliver until prices are highest?

A: No. We realize that it is tempting to think that when you have just gotten a high-priced delivery. Suburban has no way to tell what will happen to wholesale prices from week to week. We always base deliveries on customer needs and the most efficient truck routes.

Q: Does Suburban offer payment plans?

A: We offer a number of convenient payment plans to help customers offset the peaks and valleys in their annual fuel bills, such as the Budget Payment Plan and the Clear Value Plan.

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For more information, please call your local Suburban office, or our Budget Payment hotline at 1-877-776-6651, Monday through Friday, 8 AM to 8 PM Eastern.   As always, thank you for choosing Suburban.