Why Are Fuel Prices Trending Higher Than Average?

Information Regarding What’s Happening in the Oil Marketplace this Season

fuel price factors pennsylvaniaIf you haven’t already noticed at the grocery store or gas pump, nearly everything has gotten a bit more expensive recently. Every time you buy groceries, clothes, gasoline, household supplies, or go out to eat, a bigger bite is taken out of your wallet than just a few months ago.

Unfortunately, this also applies to energy costs as we’re approaching heating season.

Gasoline costs have risen by more than $1 per gallon since last year. Natural gas prices have risen by over 150%. Crude oil prices have passed $85 per barrel, which is higher than they’ve been in seven years. Propane prices are at their highest since 2014. The cost of electricity is also increasing, owing to the industry’s heavy reliance on power plants fueled by natural gas.

Thanks to solid relationships with our fuel vendors and a large storage capacity, Poore’s Propane is doing everything we can to minimize these price increases for our customers.

But What’s Causing These Energy Price Hikes?

When it comes to energy prices going up, there’s more than one cause at-hand. Because most energy is derived from commodities like crude oil, everything from weather to geopolitical events will have an impact on prices.

One reason is that oil and natural gas drilling has decreased in calendar year 2020—due in large part to a focus-shift on “electrification” in home heating. The misguided attempt to electrify homes, which can significantly boost heating costs while lowering heat efficiency and comfort, is due to the incorrect notion that electricity is superior in terms of combating climate change.

The lesser drilling causes supply to dip down—even as demand is rising as heating season approaches. Natural gas processing doesn’t just drive up the cost of electricity generation, but also the price of propane, and a significant amount of propane in the United States comes from natural gas processing.

This has a negative impact on fuel service providers like Poore’s Propane as well. We don’t make more money when prices rise like this. We make less.

Here’s how that works: When the cost of foods like coffee, bread, or milk goes up, your local grocery store isn’t making more profits. That goes to the Wall Street investors. Customers are having difficulties paying their bills. They decrease spending. We need to draw on our lines of credit more frequently. Our phones are ringing off the hook with inquiries. The bottom line is that the sooner energy costs decline, the happier we will be as well.

Poore’s Propane is Here for You

These price increases may make it hard for some of our customers to pay their bills. We’re here to help. Please contact us about anything we can do to assist you save money on your energy expenses or make payments simpler. And please give us a call if you’re having difficulties with your bills. We’ll work with you if you contact us before you fall behind.

There are also programs available to help with your heating costs if you are struggling to pay your energy bills. Each state in our service area has a Low-Income Energy Assistance Program. These programs are funded by the U.S. Department of Health and Human Services. There are also local agencies that can help.

This is not the time to let pride or fear keep you from seeking help. As before, we’ll get through this time together.

Poore’s Propane helps you take control of your heating costs. Check out our pricing and payment options to find the one that’s right for you.