Quote:
Originally Posted by 8gv
So...
Let's say one has a prepaid contract for propane at $1.68 per gallon with enough to cover the heating season.
Did the contracted company lock in a price that allows a profit despite the rising prices that we now see?
If so, did the next company up the line have a contracted price from the well head?
At what point does the communication come out saying "We can no longer honor the contracted price."
Does all of the price escalation fall to the customers that don't have contracts?
Decades ago I recall some oil delivery companies in CT going broke as a result of supplier price increases and fixed price contracts with their customers.
Many of those customers had prepaid contracts and their money evaporated.
After they lost their money, the customers had to go find oil for a much higher price.
Hang on; the seas are about to get rough!
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They were unregulated at the time. They were allowed to take the pre-buy money and not buy futures contracts to lock in the price. This allowed them to gamble on the price going lower and then keeping the extra. NH RSA 339:79 was adopted to make the practice illegal.