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What Is Affecting Propane & Heating Oil Prices?

Written on: April 11, 2022

Understanding the Energy Markets & Price Fluctuations

fuel prices new hampshireThis is an important message to our customers: We take no pleasure in charging you more for heating oil and propane. We know how difficult it can be when the everyday necessities you and your family depend on keep getting more and more expensive. Unfortunately, propane and heating oil prices have increased sharply. And while that is likely putting pressure on your budget, please know that propane and heating oil still both represent highly efficient and safe ways to heat your home and water. In addition, they reduce your household’s carbon emissions. In fact, at Brideau Energy, we are proud to deliver Bioheat Plus® fuel, which is keeping us on track for a carbon-neutral future.

It may also help you to remember that price increases like this, although painful don’t last forever. But let’s take a look at some of the various factors affecting the price you pay for heating oil and propane.

Global Conflicts & Natural Disasters

The world is so interconnected, that war or political unrest on the other side of the globe affects life here in New England. Geopolitical events elsewhere can impact crude oil and natural gas prices here. And since propane is a by-product of both crude oil and natural gas, when the price on those fuels goes up, the price of propane follows suit.

Before the start of the war in Ukraine in late February, energy prices rose in anticipation of the potential sanctions that could be levied on the Russian energy sector if the country went ahead and invaded Ukraine.

When Russia finally invaded and the U.S. placed a ban on Russian imported oil and petroleum products, that created a big energy void that needed to be filled. Those who make their living in the oil markets don’t like that level of uncertainty.

Additional Factors Affecting Prices

The push and pull of supply and demand has always affected the price of heating oil and propane—like with any other resource. And when the reduction in supply occurs during a time of high demand, such as the colder months, the market reacts. If that cold snap is especially extreme or lasts longer than usual, the scarcity gets further compounded. And if the general public reacts by panic buying (hoarding), then the scarcity can grow even more severe.

Recent events have also played a role in the price you pay for fuel:

Now what?

We deliver fuel, we don’t predict the future. But whatever the future has in store, know that Brideau Energy will be here for you.

Truth is, this is a hard time for us as well, and we’re just as troubled as you are. It’s a common misconception that companies like ours make more money when prices skyrocket. Actually, the opposite is true. We lose out on profits for several reasons. First, many of our customers cut back on their fuel usage. Some have trouble paying their bills and our receivables increase exponentially. Despite all this, we must still pay our suppliers promptly. That usually means we have to borrow more from the bank.
These are uncertain times, but here are two promises we can make to you:

  1. We’ll continue to deliver for you. We won’t let our customers run out of the propane or heating oil they depend on.
  2. If you start having trouble paying your bills and let us know, we’ll do our best to work with you. And if you haven’t yet, you should consider signing up for our heating oil or propane price-protection payment options.

As a family-owned, top-quality fuel company, Brideau Energy cares about our central Massachusetts and southern New Hampshire customers.

Contact us today to learn more, request a fuel delivery, or receive service. Your comfort is our priority.