Posted: November 28, 2022

Trying to predict fuel prices

Rick BottiniLately, we’ve received tons of calls from our customers asking about fluctuations in the prices of heating oil and propane. After peaking in late spring, oil prices plummeted over the summer, only to surge by more than a dollar immediately after OPEC slashed production.

We’re following price projections daily and wish we could tell you exactly what’s coming. Some experts point to historically low inventory levels entering the heating season, with the EU’s December 5 deadline for cutting off Russian natural gas and the strong U.S. dollar as evidence that prices will rise.

Others argue that worldwide economic output will continue to fall and depress global demand, which will push prices down. Add to all of this the uncertainties about weather and the Ukraine crisis, and you have a formula for extreme volatility for all energy sources.

Propane’s price increases have been less than virtually all other fuels. Still, there are concerns that prices could increase in the future, driven by low inventories and the possibility of more American propane going overseas to compensate for cut-off Russian supplies.

Bottini Fuel has been keeping customers safe and warm for over 70 years. You can rest assured that even when supplies get tight, we maintain strong relationships with suppliers. And we prioritize our existing customers before anyone else.

Don’t hesitate to contact us if you have any questions or concerns. As we always have, we’ll take care of it!