Dear Valued Customer,

Let me begin this letter by thanking you for your business during this current oil pricing nightmare.  I recognize that this coming heating season is presenting challenges for some of you, so I would like to take this opportunity to open up the communication regarding the price protection program you purchased earlier this year. 

The oil market has been extremely volatile over the past year, sometimes fluctuating as much as 25 cents a gallon in just a few hours.  The price of crude oil per barrel rose to unprecedented highs of over $148.00 and during those times we felt it was prudent to offer a prebuy program for our customers.   

We offered a daily price and bought gallons to cover the gallons we purchased on your behalf.  Our sole purpose of offering price protection was to protect you from the continually rising heating oil prices.  At the time you locked in, it felt like the right decision, as everyone thought the prices would continue to climb.  No one predicted the current free fall.  On the flip side, if the prices had increased this heating season, we would not have increased your price.  It turns out that those who bought downside protection made the right decision (today that is).  Believe me; if we could lower the price for you, we would, without hesitation. 

We are in the same boat.  Like you, we contacted our wholesale suppliers to try and get out of the contracts but to no avail.  We are obligated by contract to take delivery of the higher priced oil we contracted for this past summer.  We are currently paying $1.50 to $2.50 more per gallon than the current market price.

Who knows what will happen next year – there are no guarantees for how the market will move day-to-day, let alone year to year.  We would like your feedback and thoughts on changes you feel should be made for our program next year.  I welcome all feedback and would appreciate any comments or suggestions.  Please send them to me, by calling 800-333-6703 and leaving a message or email jlamprey@lampreybrothers.com.    

Sincerely,

Joanne Lamprey
President