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Report: #390069

Complaint Review: Marts Oil - Wilmington Delaware

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  • Reported By: Oilville Other
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  • Marts Oil http://www.martsoil.com/ Wilmington, Delaware U.S.A.

Marts Oil Deceptive Advertising of Lowest Available Oil Price Wilmington Delaware

*Consumer Comment: Marts Oil - You have to read their Terms and Conditions - then calculate

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Marts Oil advertised very extensively back in the summer (when crude oil prices were sky high) their 'Price Protection Plan', which is essentially a price cap, ensuring that participating customers pay no more than the cap price. If the daily price is lower, you are guaranteed to pay the lower price. Marts bills this as their "daily variable rate". The implication is clearly that you will pay the lowest available price up to the cap price.

Marts charges a premium for this plan, which is based on reserving a specific number of gallons for the winter season. That all makes perfect sense and would be no issue at all, except...

Now that crude oil prices have fallen, Marts is again advertising a plan, billed as "taking the pain out of higher prices". The ads running now sound very much like the old Marts ads, and quote a per gallon price of as low as $2.099. That's what you will find billed on their website as "Today's Oil Price". However, when I called to confirm the price at which I would receive my next delivery of oil under the 'Price Protection Plan', I was told today's price was $2.799.

Sound odd? When I asked about the difference, and why I was paying so much more than what is being advertised as "Today's Oil Price", I was told that this is their "wholesale" price, which is part of a different program, and comes at an entirely different premium cost, over and above what I paid for the 'Price Protection Plan'. I pointed out that I felt this was at the very least deceptive, to see a price (the only price shown) on the Marts website that was not what I was paying, despite my plan's assurance that I would pay their "daily variable rate". I was told that they do not post the rate I pay on their website, and that I could sign up for the new plan if I liked, of course, paying the additional premium.

It seems obvious that Marts Oil simply invented a different way to charge customers a premium, while leading them to believe that they would be paying the lowest available rate for oil (up to a cap). Not the way I believe a good company should treat their customers.

Betrayed
Oilville
U.S.A.

This report was posted on Ripoff Report on 11/11/2008 11:00 AM and is a permanent record located here: https://www.ripoffreport.com/reports/marts-oil/wilmington-delaware/marts-oil-deceptive-advertising-of-lowest-available-oil-price-wilmington-delaware-390069. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 Consumer Comment

Marts Oil - You have to read their Terms and Conditions - then calculate

AUTHOR: Gerry - (U.S.A.)

POSTED: Thursday, December 04, 2008

Everyone knows or should know in that in reviewing advertisments, that you have to be cautious of the attention getting phrases and see what price applies to you.

It is clear the complaints of this service are based upon the experiences of individuals who do not completely read or review the options being offered.

I recently considered Marts Oil's service to see if I could save money on oil deliveries.

I went to their website and reviewed their information.
- It was clear from the beginning that you had to read their terms and conditions completely and that they had several different price programs.
- It was equally clear their 'contract year' runs strictly from May 1st through April 30th of the following year, not from when you sign on to any of their programs.
- Any changes to your individual program to avoid any fees have to be made from May 1st through May 15th.

I learned this in 15-20 minutes from reading their published information.

I then called their offices and asked several questions.

You can either pay:
1. a 'variable' price which is their retail price effective upon delivery OR
2. a 'price protected' price OR
3. a 'wholesale' price.

1. The 'variable' price would be the highest. It is likley similar to your local oil company's price with little or no advantage.

2. The 'price protected' price is cheaper than the 'variable' price, but has a fee for your being able to protect this lower price. The current $30/100 gal fee is equal to an additional $.30/gal.

3. The 'wholesale' price is cheaper yet and is the price usually quoted in the advertisements. It requires your joining their 'Partner' program. You either deposit $3,500 OR merely pay upon delivery by credit/debit card. The credit/debit card option has a 3.5% 'convenience' fee added on to the delivery bill. There is an annual fee of $399 to join the 'Partner' program.


The info below may be helpful to other consumers considered Marts Oil, but perform your own calculations before getting involved in any contract.

It assumes you will be charged the 3.5% convenience fee against the $399 membership fee as well. Per Marts customer service, the 'Partner' membership fee can be spread across the first three (3) delivery payments.

If I were to join the 'Partner' program, use 1000 gal per year, pay upon delivery by credit card (without any $3500 deposit) and have 5 deliveries of 200 gallons each per year, the current annual cost would be - assuming the current 1.699/gal 'wholesale' price (as of 12/02/08) does not increase:

1st delivery: 200 gal @ $1.699 + $133 (1/3 of $399 membership fee) + 3.5% convenience fee = $339.80 + $133 + $16.55 = $489.35 ~ $2.447/gal.

2nd delivery: same cost as 1st delivery

3rd delivery: same cost as 1st delivery

4th delivery: $339.80 + $11.89 = $351.69 ~ $1.758/gal

5th delivery: same cost as 4th delivery

The overall cost per year for 1000 gallons is $2,171.43 ~ $2.171/gal


My local guy just got $2.89/gal from us for 200 gallons. On that basis, for a full year (1000 gal) that would save me $718.57.

However, at this point I need only 800 additional gallons for this year. I will have to spread the $399 membership fee over that lesser amount of oil and the annual savings will be reduced. I will basically lose the cheaper 5th delivery as outlined above and my cost will be the combined cost of the first four (4) deliveries, since I still have to pay the full $399 'Partner' membership fee. I estimate the remainder of this heating season (if bought through Marts) will cost me $1,819.74 for 800 gal, which equates to $2.275/gal.

As a result, I could save (Dec '08 through May '09) $.615/gal for 800 gal or $492.26 using Marts' 'Partner' program.

It seems worth it to me. However, any savings depends upon Marts' 'wholesale' price remaining substantially cheaper in comparison with local prices, especially as prices go up and down for oil during the heating season.

I am not affliated with Marts in any way and have yet to use their service. I live in Burlington County NJ.

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