ENERGY PRICE UPDATE: OCT. 2022

Written on: October 12, 2022

On October 5, OPEC announced it was slashing production by two million barrels a day. Within just three days, our suppliers increased the cost of heating oil by 70 cents per gallon. That’s right, 70 cents per gallon.

This is not just impacting heating oil. Expect natural gas, electricity, gasoline and propane to move higher too. Of course, this is not simply about supply and demand. We’ve learned that when prices move this far this fast, you can always see the impact of Wall Street firms that jump to take advantage of the momentum to make a quick buck. (Or should we say millions of bucks?) It frustrates the heck out of us.

Of course, things can turn around just as quickly. We saw prices spike in spring only to drop by over a dollar in summer. There are just too many variables to know where things will go from here.

Here are a few things to bear in mind:

1. We hate high prices and volatility just as much as you do. It hurts our customers, hurts our company and makes planning very difficult.
2. This year, supply issues could become problematic. While we have excellent relationships with our suppliers, it is imperative that you go on (or stay on) automatic delivery. This way, if we go on “allocation” from suppliers, have drivers out sick because of COVID or face severe weather, we can manage capacity better and keep you warm.
3. Don’t be surprised by big bills. If you’d like to know how much you used last year so you can project this year’s bills more accurately, call us. This is going to be painful, but it will be helpful to be able to plan for it.
4. If you are having trouble keeping up with your payments, it is critical that you call us as soon as you realize there’s an issue. We can work with you but only if you communicate with us early.

I will try to keep you informed as events unfold. There are many things we can’t control, but we will always prioritize our existing customers over new ones. We will go the extra mile to keep you safe and warm. And we will be there when you need us.

Updated 2/23/22

Why Your Bills Are Going Up

Dear Valued Customer,

Once again, we’re seeing energy prices surge across the board. We know how painful that can be for our customers. It’s painful for us, as well.

What’s Going On?

Gasoline has risen more than a dollar more per gallon vs. a year ago. Natural gas prices have skyrocketed more than 150%. Crude oil prices have climbed above $100 per barrel, a level we haven’t seen in seven years.

The cost of electricity has not been spared either. Higher natural gas prices result in price hikes for wholesale electricity because of heavy reliance on natural gas-fired power plants.

What’s more, wholesale propane prices have hit their highest weekly average levels since February 2014. Read more about the factors that are driving today’s energy market.

What We’re Doing

People sometimes misunderstand how negatively all this impacts us, as well. We don’t make more money when prices rise like this; we make less. Think of it this way: it’s like when the cost of coffee, milk, or oranges rises. It’s not the local grocery that is profiting. (That’s left to the Wall Street investors.) Our customers have a harder time paying their bills. They reduce expenditures. We need to tap into our lines of credit more. Our phones light up with questions. So the sooner energy prices drop, the happier we’ll be.

In the meantime, please talk to us about things we can offer to help you reduce your energy costs, or handle payments more easily. And if you are having trouble with your bills, please call us. We can generally work with you if you reach out before you fall behind.

Trust Us to Come Through for You

We’ve been in business for many years and have deep roots in the community. We have secure access to supplies. We are doing everything possible to ensure we can deliver — even if other companies cannot — no matter the cost or difficulty we face.

We thank you for your understanding and we appreciate your loyalty. As we’ve done quite a few times in the past, we will get through these tough times by all working together.