Erie Islands Petroleum Announces Winter Oil/Fuel Program

To our Valued Customers:Erie Islands Petroleum

We are circulating this memo to make you aware of the circumstances surrounding the cost of gasoline, diesel fuels, and heating oils for the winter months on Put-in-Bay. Once again we are rapidly approaching our off season and with these last few cool evenings our winter fuels season. On an average, Put-in-Bay requires nearly 60,000 gallons of gasoline and over 70,000 gallons of heating oils and diesel fuels in stock to make the winter.  We, as island residents are used to “stocking up” for the winter. We are used to counting on ourselves and we are used to looking out for one another. Erie Islands Petroleum, Inc. as usual and as always will supply everyone we can with his or her energy needs. We are asking that everyone consider our pre-pay programs.  Last year our gas card program worked very well. We are currently in the process of yet again refining the gas card type program where a pre pay customer can purchase a cash value on a credit type Erie Islands Petroleum, Inc. gas card. That gas card will keep track of the remaining money balances through our credit card terminal. You also can access your account online. It will be the customers’ responsibility to keep that card and present it to our cashier at the time of sale for proper charging of fuel value to that account.

Erie Islands Petroleum, Inc. will for this program, purchase the fuels, store the fuels at either the gas station for gasoline or our storage facility for diesel fuels and heating oils. We will deliver the fuels to you at your request for heating or bulk fuels, and for gasoline we will keep our regular hours at the gas station for your refueling needs.

We very strongly recommend purchasing your winter fuel needs early and as much as you will need and only as much as you need for the winter. Heating customers already have a good idea how many gallons and of which fuel they will need, but for gas station gasoline consumers, it may be a good idea to start tracking your weekly consumption now. Keep in mind adding in an extra margin of gasoline to account for warming your car, spinning tires in freezing temperatures, and leaving the car running as you do errands. Multiply that gallon amount by 22 weeks, which is a good estimate on how long a hard winter could last. That should give you a close idea on how much gasoline you will need for the winter. Today’s price for regular gasoline is $3.29. Multiply your gallon amount by that for how much you would need for your gas card purchase. Any non-pre-paid customers cannot be guaranteed an uninterrupted supply. Nor will they be guaranteed a fixed price. As supply depletes, prices will most likely increase.  Once, the fuels, excluding the pre bought products, that Erie Islands Petroleum, Inc. has in stock that is available for resale has been depleted, only those individuals and businesses that have a pre paid balance will be dispensed to; by either truck or at the gas station. All pre-bought fuels will be very strictly kept in only pre-bought storage. There will be no mixing or selling pre bought fuels to any non-pre buy customers. Pre-buy customers are most certainly guaranteed that all pre-bought products will be available through the entire winter season.

Pit Stop

Please do not misunderstand what we are saying. We fully intend on having a supply of all fuels for the winter months. By pre-buying you will help to ensure that a more abundant supply will be available in the event of a harsher winter.

Since the birth of our Prepaid Gasoline  Program over 13 years ago, it has grown and evolved, sometimes not in the direction of its intended purpose. Changes in the economy,  fluctuations in oil prices,  exceptionally warm or cold or short or long winter seasons all have contributed to leaving many of our participants on the wrong side of the pricing. And on our side, I still am seeing 13 year old cards being used occasionally.  These are problems that need to be addressed.

The Designed Purpose of the Prepaid Program is to provide cheaper fuels and a 100% Guarantee  that All of the Prepaid fuels are in separate tanks, segregated from the non pre paid fuels, thereby ensuring those individuals able to afford to pre buy their winter fuels the peace of mind that they will have what they bought and paid for without the fear of gas rationing.  Twice since the beginning of the program we had had to ration gasoline due to a long cold winter season that brought hundreds of our mainland neighbors across the ice on their snowmobiles. The pre paid gasoline was not touched, there was NO rationing either time for pre paid participants and there never will be.
For the guarantee of lower price and availability of their fuels, we are able to use participants’ money earlier and we are able to afford to stock up the islands’ fuel needs as well as buying the fuels earlier when they are traditionally cheaper, also making non pre paid fuels less expensive …a win-win for all. This was all to happen on a year by year basis. By buying only what you would use in that winter and participating each year, your best prices that year would be available. A natural evolution away from the original purpose of the Program became using the Prepaid Program as a “bank”…buying a lot and using it throughout the year or for multiple years. This takes that yearly money for winter stocking up out of play. Numerous times participants found themselves on the wrong side of the price the following years and actually paying  more than the non pre paid people for that winter’s gasoline.  It also puts a hurt on us and face it…if we end up losing money because of economics, oil prices, etc. Our only option is to raise the prices across the board and then no one wins.

Our solution is simple; we will only honor the winter pre-paid price for each individual winter season.  You are welcome to begin using your pre paid gasoline on December 15th of each year and that price will only be good through April 15th of the following year. As usual, after April 15th you still may use your Gas Card but it will be at the daily gasoline price. If you carry a surplus over to the following season, it will be at the next season’s price.  You will simply be carrying over your dollars, not gallons at a set price.

Our pre-buy gas card program is now open. Until October 31, 2016. You can pre-buy your fuels at Erie Islands Petroleum, Inc.  Gas station gasoline will be pre-bought through the gas card program.  Bulk diesel fuels, bulk gasoline, and heating oils will be as usual on “in house” accounts. There will be no extension on the pre-pay program.  All pre-bought fuels must be ordered and paid by close of day October 31, 2016.  This will ensure our best price from our suppliers. We are sorry but credit card users will be charged an additional 3% as pre-paid fuel is already at lowest acceptable prices. Pre-bought fuels can start being used as early as December 15, 2016.

Please let the others in your circle know of this change so we can reach the largest consumer group possible. Please call me at 419-341-9656 if you have any questions or concerns.

Thank you,

Gary Kowalski

P.O. Box 457, Put-in-Bay, Ohio 43456

Additional information is provided below:

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2016-oil-contract

gas-regulations-2016

2016-prepaid-gas-contract