What’s up With the Rising Fuel Prices?

Here’s Why Energy Costs Are Up Across the Board this Season

While some things are inching back towards normal, the pandemic, combined with destructive storms along the gulf coast, have disrupted the supply chain. It’s 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, and propane prices are at their highest levels since 2014.

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. Read more about the factors that are driving today’s energy market in the article here.

People sometimes misunderstand how negatively all this impacts us on our side as well. It’s important to remember that we don’t profit more when prices are higher. In fact, it’s the opposite; we make less. 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 Behind the Higher Propane Prices?

Propane is manufactured from commodities that are bought and sold on the global market—mainly natural gas. As a result, propane prices can fluctuate unpredictably based on a variety of factors:

• Supply and demand. If it’s a long, cold winter, prices will rise. The increase in propane exports to meet global demand can influence our national supply. Propane prices also vary based on the season and production and inventory levels. That’s why it’s smart to have us to fill your propane tank in the late spring and early summer months, when demand typically ebbs.
• Proximity. The price of propane will be lower the closer you live to a major distribution center.
• Current events. Oil spills, pipeline failures, ransomware attacks, geopolitical conflicts and instability in the Middle East, and OPEC production levels are all examples of things that can impact what you pay for your propane. The COVID-19 pandemic has greatly disrupted the supply chain for many industries in the U.S., including propane.

There are Ways We Can Help You Save Right Now!

At PitStop Propane and Fuels, we understand how these propane price increases can present challenges for you. While we can’t control propane prices, we’re always looking for ways to help you keep propane costs manageable. Our EZ Pay Budget Plan helps by spreading your costs over even, monthly payments. It eliminates those big bills that can come back-to-back during our frigid winters. You can also find help from Maine’s Low Income Energy Assistance Program. And if you are having trouble with your bills, let us know: We’ll work with you in every way that we can. Trust PitStop to come through for you.

We’ve been in business for many years and have deep roots in the Southern Maine community. We have secure access to supply. We are doing everything possible to ensure we can deliver—even if other companies cannot—no matter the cost or difficulty we face. We thank you for your understanding and we appreciate your loyalty. As we’ve done quite a few times in the past, we will get through these tough times by all working together.