As you’ve likely noticed, energy prices—amongst numerous other commodities—are surging across the board. You’re feeling the pinch when you go to fill up your car, with gasoline prices up more than a doll per gallon over a year ago. Natural gas prices have skyrocketed more than 150%. Crude oil prices have climbed above $80 per barrel, a level we haven’t seen in seven years. Wholesale propane prices have hit their highest weekly average levels since February 2014. The cost of electricity has not been spared either.
We know how painful that can be for our customers. And it’s painful for us as well.
People sometimes misunderstand how negatively all this impacts us. It’s important to remember that we don’t profit when prices are higher. In fact, it’s the opposite. Think about when food prices increase. Your local grocery store isn’t profiting off those higher prices. If anyone’s profiting, it’s the big corporations and Wall Street investors behind the scenes.
When customers are having a hard time paying their bills, they’ll reduce their purchases. We need to tap into our lines of credit more. Our phones light up with questions. The sooner energy prices come back down, the happier we’ll be.
Propane and heating oil are manufactured from commodities that are bought and sold on the global market. As a result, propane prices can fluctuate unpredictably based on a variety of factors, including supply and demand. Current events can also play a role. Oil spills, pipeline failures, ransomware attacks, geopolitical conflicts and instability in the Middle East, and OPEC production levels are all examples of things that can impact propane prices.
Another part of the problem is that during the early days of the pandemic, fuel prices plummeted because of decreased demand. The industry—and Wall Street—is still trying to recover. That’s why, rather than increase supply, there are some who want to keep prices high by keeping supplies tight.
At Depew Energy, we understand how these price increases can present challenges for you. While we can’t control fuel prices, we’re always looking for ways to help you keep propane costs manageable:
Help is also available from New York’s Home Energy Assistance Program. And if you are having trouble with your bills, let us know before you get behind: We’ll work with you the best way we possibly can.
We’ve got deep roots in the community. We have secure access to supply. We are doing everything possible to keep prices fair and transparent. 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. Whether you need heating oil for your furnace, propane for your stove, or gas piping installed in your home, Depew Energy is the locally based company that will be there for you. Contact us for more information today.