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:
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.
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.
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.
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.
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.