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Shocking Spike in Fuel Prices

Posted: March 11, 2022

Unsurprisingly, we’ve been getting many calls around two connected issues- the surge in fuel prices and supply concerns. People are astounded by how much prices have risen, and how fast. So are we. They are also concerned that there will be interruptions in supply that will cause them to run out of fuel.

The Russian invasion of Ukraine shocked the energy markets, sending crude oil up over $130 per barrel.

To give you a sense of this of how this affects your heating oil price, wholesale prices have continued to surge daily- a total of $1.72 in one week. Normally, they might change 5 cents in a week. Propane prices have been better, but still increased over 40 cents per gallon. And the situation remains very fluid.

What’s coming next

We don’t know where things will go from here. One thing we can tell you is that we hate this as much as you do. Some people are under the misconception that when prices rise, we make more money. The opposite is true. People cut back usage. They have trouble paying their bills and our receivables skyrocket. Meanwhile, we must pay our suppliers in just 10 days. We must borrow much more from the bank. It is an awful mess for everyone.

One thing you can count on is that we will not let you run out. We have been in business for 95 years and have very strong relationships with suppliers and financial institutions. We are already getting calls from customers who are with other companies who can’t say the same, and who are unable to get deliveries for 20 days out. You don’t have to worry about that with us.

If you are having trouble paying your bill talk to us. Many times, we can work out something to give you more time, since you have been a loyal Wilson customer. Remember that we do offer price protection options. Call us if you’d like to discuss.

Nothing will make us happier than when prices start dropping. Until then trust us to look out for you and pray for the people of Ukraine.

Warm regards,
David O’Connell, President