It’s hard to ignore the war in Iran and the impact it has on oil prices over the past two months. You can see it reflected every day at the gas stations!
For our home heating oil, prices have followed the same tumultuous trend. We have been monitoring it down to the minute to best manage our costs and thus our customer pricing. As an example, over the course of just two days in March, we saw a $0.71 price increase from our suppliers, an extremely rare occurrence.
While many of you usually start exploring your next price contract in spring, we’ve been discussing the option of floating with the market. This strategy provides time for conditions to hopefully normalize before next winter.
For those who want more certainty and would like to sign a contract, we strongly recommend the cap price plan; the price you pay per gallon is locked at a ceiling, meaning it will never go up. When prices go down, your price goes down as well.
We continue to keep a close eye on the global market and work with our suppliers to provide stability for our customers. If you use heating oil for hot water, please be aware that although winter is over, you may need a delivery over the course of the warmer months. If you have any concerns or would like to discuss pricing options, such as the cap plan, please give us a call.
Jim Hickey
General Manager
