Shocking Spike in Fuel Prices
Updated: March 11, 2022
Unsurprisingly, we’ve been getting many calls around two connected issues: the surge in fuel prices and supply concerns. People are astounded by how much prices have risen and how fast. So are we. They are also concerned that there will be interruptions in supply that will cause them to run out of fuel.
The Russian invasion of Ukraine shocked energy markets, sending crude oil to record territory.
To give you a sense of how this affects your heating oil price, in early March, we received notice at night from our suppliers that their prices were going up 20 cents per gallon the next day. The next day, prices went up three more times—a total of 60 cents in just 24 hours. Prices continued to surge—a total of $1.25 in one week. Normally, they might change 5 cents in a week.
What’s Coming Next?
We don’t know where things will go from here. One thing we can tell you is that we hate this as much as you do. Some people are under the misconception that when prices rise, we make more money. The opposite is true. People cut back usage. They have trouble paying their bills, and our receivables skyrocket. Meanwhile, we must pay our suppliers in just ten days. We must borrow much more from the bank. It is an awful mess for everyone.
One thing you can count on is that we will not let you run out. We have been in business for many years and have very strong relationships with suppliers and financial institutions. We are already getting calls from customers who are with other companies that can’t say the same. These customers are unable to get deliveries for 20 days out. You don’t have to worry about that with us.
If you are having trouble paying your bill, talk to us before it becomes a problem. Many times, we can work out something to give you more time, especially if you’ve been with us a while.
Nothing will make us happier than when prices start dropping. Until then, trust us to look out for you, and let’s pray for the people of Ukraine.
Bobby Mapes, Owner
Black Bear Fuel Oil, Plumbing, Heating & Air Conditioning