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Hoffman Fuel / Buyer Beware! Price Cap Scam

1 CT, United States Review updated:

We signed up for the price cap in October 2008 at $2.49 a gallon. The representative said that whatever the market rate was the day of delivery, that's the rate we would pay, but no higher than $2.49. The prices of oil went down significantly and each time we receive oil we were billed at $2.49 a gallon, way above the market rate. I called again to ask why we were not getting the lower rate as they promised and was told they bought thousands of gallons of oil at a higher price and until that supply was gone we would have to pay the cap rate. It is now March 2009 and still getting billed for $2.49 - and when I called to inquire why the high rate still, I was told their current rate is $2.54 a gallon and that I was getting a good price. The person I spoke with was very, very rude. Clearly they don't care about customer service!

Stay away!!!

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  • Cp
      20th of May, 2009
    0 Votes

    Oil companies are required by the state of connecticut to purchase 75% of a customers oil regardless if they choose a fixed or a cap price. So yes they do purchase millions of gallons up front and until that is delivered they can't lower the pricing. Companies also get penalized when they purchase high and the market falls. They have to pay a margin call which could be in excess of 1 million dollars to be able to benefit from lower pricing.

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