A Fall Market Update
As we head into the winter months, energy prices are on the minds of homeowners both locally and throughout the country. For the last six months, we have all been impacted by high gasoline prices, escalating food prices, and general inflation of consumer goods, as a result of COVID, supply chain issues, war, and global energy market changes.
In the wake of Russia invading Ukraine, we experienced an immediate impact on the heating oil and diesel fuel markets resulting in dramatic price increases for these energy products. We took immediate action to try to mitigate risk for our customers by postponing many deliveries and suspended offering our price programs. We have worked tirelessly since that day to communicate with our suppliers and industry leaders to navigate the market and monitor our delivery schedules to the benefit of our valued customers.
The good news is, we have seen a steady decline in prices since its peak due primarily to removing the “fear factor” of the lack of supply from the market due to the war. Historically, when we see price spikes due to geopolitical events, we also see price declines when the dust settles a bit and the market absorbs the news. Because of these factors, we are now reopening enrollment of our Cap, Fixed, and Pre-buy oil pricing programs to our customers. What else is good news… the propane market has been extremely steady so if you are a propane user, the impact has been minimal.
A couple of comments that I can provide about heating oil pricing programs based on my 40 years in this industry: do what makes you comfortable and stick to what got you here! Trying to guess where this market will lead tends not to work, so if you normally enroll in the Cap or Fixed program, do that. Or if you normally float, do that. Continue with the program you’re comfortable with and is within your risk tolerance. Whatever program you choose, rest assured that we will support you and compliment that with the best 24-hour service to meet your heating and cooling needs.
Thank you for your loyalty and enjoy the rest of your Summer!
Sam Gault
Gault Family Companies
President