3 Feb, 2019 → by ClaimboUser672857
Petro Egregious Pricing Practices

1

If a "0" star rating was possible that's the rating I would give Petro Home Heating Oil. As a Middlesex County, CT customer since 2002 NOW Former Petro customer as of 1/17/2019 I hope anyone reading this review and considering becoming a Petro customer, or existing customer, run the other way. Please bear with me, this is a very looong review. We have been Petro customers since purchasing our weekend home in CT in 2002. We have been on the Variable Plan Petro offers for 16 years. On the Petro website it states, "The Variable Plan has an attractive rate that fluctuates up and down with market conditions. There are no price protection costs or termination fees associated with this plan." In my opinion Petro has been engaging in profiteering practices by NOT charging prices that reflect fluctuations up and down in the heating oil market. I did my research. Continue reading... The DEEP (Department of Energy and Environmental Protection) website has historical regional data on the average, low and high oil prices going as far back as 2006 for all of the counties in CT. I have records of all of our Petro transactions from 2005 to our final delivery on 12/11/18. Using DEEP Middlesex County, CT AVERAGE RETAIL HEATING OIL PRICE with the date closest to each of our oil deliveries and calculated the price difference and the amount we overpaid. For example, Petro delivery date 12/11/18 we were charged $4.149/gal. For the week of 12/10/18, DEEP average price/gal $2.918. Our delivery was 120.7 gallons. Price difference $1.375/gal. Multiply 120.7 gallons by $1.375/gal and Petro's profit on this single delivery was $148.40! On 10/15/18 we were charged $4.599/gal. On 10/15/18 DEEP average price/gal $3.224 we were delivered 107.2 gals. Price difference $1.375/gal. Overcharged $147.40 on this delivery. Using this same methodology from 2005-12/11/18 Petro charged us $4,662.24 above the DEEP documented average heating oil prices for Middlesex County, CT. I called Petro and spoke to Jennifer. Jennifer told me, as a Variable customer, the reason for the $4.599 price per gallon was because, "The variable pricing fluctuates with Petro costs which includes the cost of fuel AND PETRO COST OF DOING BUSINESS." The Variable Plan description does not mention Petro's costs of doing business getting passed onto Variable Plan customers. You would "think" as the "largest" provider of home heating oil that their buying power would be able to offer their customers the lowest price not the highest prices on home heating oil. Jennifer forwarded me to pricing rep Rich. Rich wanted to save a "loyal" customer by offering me the "Protected Pricing Plan" where I would lock in something like a $3.00/gal rate for a year. I asked Rich to explain to me why I paid $4.599/gallon when you can offer me a price of $3.00/gallon on this other plan and lock it in. No response. Clearly, my consumeraffairs.com review/complaint I posted soon after this conversation got Petro's attention. I got a call from Rich, customer service manager, and Mike, general manager. This conversation was not any different than the one I had with Jennifer and Rich #1. No rational explanation for Petro charging these extortionist prices. They of course challenged the DEEP data implying that COD delivery prices and discounted new customer prices were included in DEEP documented prices. The DEEP data specifically states that they do NOT include COD or discounted prices. Call was ended and told I would hear back from them by the end of the week. Next I received a call from Donna from a Petro office on Long Island. Same story. I emailed Donna links to all of my resources. Donna promised to call back in a couple days. In the interim, I filed complaints with CT attorney general's office Department of Consumer Protection and the Better Business Bureau. Donna calls me and wants to keep a "loyal" customer. (Wow, if I am a loyal customer, how do they treat their NON-loyal customers?) She throws me a bone of 2 years free preventive maintenance service on our furnace which costs approximately $500/year. Wait, that would require me staying a Petro heating oil customer. Really?!?! Donna stated, "she was sorry we could not come to an amicable resolution". Oh, almost forgot, Donna mentioned that I was being charged Fairfield County prices NOT Middlesex County. Fairfield County, CT is the highest income county in CT AND significantly closer to NYC. Of course the price per gallon charged to Fairfield County customers is high. Our invoices come from Petro's New Haven office and we live in Middlesex County. If Petro wanted to reference Los Angeles prices THEY CAN!!! This industry is not regulated in any way shape or form. Fairfield County overcharged $3,049. Middlesex County overcharged $4,662. You get the picture...I encourage anyone who reads this review to share share share it. Petro must not be allowed to get away with these egregious pricing practices.
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