What’s Up with the High Oil Prices This Season?

Energy Costs Are Up Across the Board—Here’s Why

It feels like we just can’t catch a break. Just as it looked like we’d have a nearly normal holiday season, the omicron variant arrived to throw a wrench in everyone’s plans. And while the post office and other mailing services managed to avoid the shipping catastrophes of last year, ongoing supply chain problems meant the hottest gifts were hard to come by, and everything is a bit more expensive than in recent years past.

Those supply chain problems are also causing volatility in prices for nearly every energy source—heating oil, propane, natural gas, and electricity. You’ve likely noticed prices inching up at the gas pump, propane prices are at their highest since 2014, and crude oil crept past $80 a barrel—higher than it’s been in years.

What’s Causing the Rise in Prices?

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 and rather than increase supply, there are some who want to keep prices high by keeping supplies tight. You can read more about the factors that are driving today’s energy market in this article.

It’s important to remember that we don’t profit when prices are higher. In fact, it’s quite 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.

What’s Factors Affect Heating Oil Prices?

Heating oil is manufactured from crude oil, a commodity that is bought and sold on the global market. As a result, prices can fluctuate unpredictably based on a variety of factors:

Southville Can Help You Save

At Southville, we understand how these price increases can present challenges for you. While we can’t control heating oil prices, we’re always looking for ways to help you keep your costs manageable. Our Budget Plan helps by spreading your costs into even, monthly payments. It eliminates those big bills that can come back-to-back during the winter months. We also offer several price-protection options ahead of each heating season that can shield you from market volatility by locking in your price.

As we’ve done quite a few times in the past, we will get through these tough times by all working together. If you’re having trouble with your bills, let us know before you fall behind: We’ll work with you. You can also find help from New York’s Home Energy Assistance Program.

We thank you for your understanding and we appreciate your loyalty. Contact us any time for information on all the ways we can help you save.