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What Causes Changes in the Price of Fuel?

Written on: November 15, 2021

Fluctuating Fuel Prices Are a Headache for Everyone

oil prices massachusettsEnergy prices are going up across the board, for all types of fuel. These price surges can be difficult to understand, and to accept – for all of us in the South Shore of Massachusetts. So, what gives?

Multiple factors play a role in fuel price fluctuations

Several factors converge to cause price fluctuations for fuel. Of course, supply and demand contribute mightily to oil and gas price changes, but the true impact occurs as a result of pressure from multiple avenues. When war, political upheaval in other regions of the world, and natural disasters occur, this impacts exportation from big oil-producing countries.

Prices are impacted for all types of fuel

The bottom line is that price fluctuations wreak havoc on the entire energy industry.

Propane prices go up with high demand

Likewise, propane prices increase when there is a high demand, such as during frigid winters, or when heavy rains during the agricultural growing season create bumper crops that need to be dried rapidly, in great volume.

At the same time, American propane exports have been increasing steadily over the past decade. This is good business for the large wholesale propane suppliers, but it increases demand even further in an industry that traditionally doesn’t store huge quantities of propane at once.

Consumer-serving fuel businesses don’t see profits from price increases

Whatever the cause of increased demand for energy, local fuel providers aren’t benefiting. Consumers often unintentionally conflate the big wholesale suppliers with the local energy experts, but they are not one-in-the-same.

Fuel companies that serve consumers directly are not the ones influencing price increases, and they don’t benefit from them either. In fact, Williams Energy and other heating oil and propane experts in the area much prefer reasonable prices they can pass on to their customers. When prices are high, customers may start to get nervous and cut back on their energy use. Everybody suffers when shortages occur and prices are high.

We’ll deal with price fluctuations together

Fortunately, Williams Energy has great relationships – cultivated over a number of years – with our heating oil and propane suppliers in and around southern Massachusetts. This enables us to continue to provide our customers with the most affordable energy costs available.

If you are struggling with your energy costs, we are more than happy to walk you through your options to reduce your expenses, including ways to tweak your energy usage to make it more efficient, and small updates you can make to your property to make the most of the heat you do produce. Let us help you stay warm this winter, in the most affordable and comfortable way possible.