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Understanding Heating Oil & Propane Price Fluctuations

Posted: April 11, 2022

An important message to our customers

fuel prices north carolinaIt can be frustrating and downright painful at times when you see things you and your family depend on getting more and more expensive. If you’re one of Cherry Energy’s heating oil or propane customers, 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.

Also, it’s helpful to keep in mind this adage because it’s true: What goes up must come down. Fuel prices will not rise or remain high indefinitely.

Global Conflicts & Natural Disasters

Everything from war to natural disasters anywhere in the world can impact crude oil and natural gas prices. We’re not immune or isolated here in eastern North Carolina. 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.

Recent Factors Affecting Prices

Factors that have always influenced the price of heating oil and propane include the balance between supply and demand and the weather (especially if it’s extreme). If a reduction in supply occurs during a time of high demand, such as the colder months, a scarcer market develops. When a cold snap is especially extreme or lasts longer than usual, this scarcity gets further compounded. Sometimes people start to panic buy and the scarcity grows even more severe.

More recently, these issues have also come into play:

What’s Coming Next?

Here at Cherry Energy, we can’t predict the future. But we can tell you that we’re here for you and that we are 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.
  
Here’s something we want you to know: No matter what, you can count on the fact that we’ll keep delivering for you. We won’t let our customers run out of the propane or heating oil they need to keep their household up and running.
  
And please know this: If you have trouble paying your bill, you should talk with us before it becomes a problem. We’ll do our best to accommodate your budget and work out something to give you more time, especially if you’ve been a loyal customer for a while. We can also sign you up for our Level Payment Plan to help keep your monthly fuel costs steady and predictable.

Choose Cherry Energy

These times are uncertain, but Cherry Energy has stood the test of time. Our family-owned enterprise has been serving customers since 1928. Stick with us, and you’ll benefit from our superior service and expertise.

No matter what happens around the world, our commitment to our customers here in eastern North Carolina will not change. Contact us to learn more.

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