Understanding Oil Market Price Changes

Posted: April 18, 2022

What’s with the Recent Spike Fuel Prices?

heating oil costs north carolinaOver the past few weeks, we’ve heard from several folks with concerns about the surge in fuel prices. To put things into perspective, prices were already up more than a dollar this past winter season from the previous year because of issues related to the pandemic. Now, the Russian invasion of Ukraine and subsequent sanctions have shocked the energy markets. Crude oil rocketed to more than $120 per barrel at one point in early March.

Will we run out of fuel?

Everyone is astounded by how much prices have risen, and how fast. To give you a sense of this of how this affects both of us, on March 2, we received notice from our suppliers that their prices were going up 20 cents the next day. Then, on March 3, they went up again—three more times—a total of 60 cents in just 24 hours.

We’ve also heard from customers concerned that there will be interruptions in supply that will cause them to run out of fuel. We want you to rest assured that Rand Wade Oil will never let you run out. We’ve been in business for over fifty years and have the experience and understanding of the fuel markets to plan in terms of supply. What’s more is that we have excellent, longstanding relationships with our suppliers and financial partners.

Fuel payment struggles

While fuel markets are always subject to fluctuation and can be extremely volatile at their worst, at this stage it’s hard to know where exactly things will go over the coming months. The main thing we can tell you is that we hate this as much as you do. Some people believe that when prices rise, we make more money. The opposite is true. People cut back on usage. They have trouble paying their bills and our receivables skyrocket. Yet our suppliers still expect us to pay in just 10 days. It becomes a bit of a mess for everyone.

In fact, we are already getting calls from customers who are with other companies in the area who can’t say the same, and who are unable to get deliveries for nearly 20 days out. You don’t have to worry about that with us!

If you’re having trouble paying your bill, talk to us. Many of you have been with us for a long time, and we will always try to work to give you more time. Also, now is a good time to ask us about our available payment plans. They’re designed to help you keep bills manageable, and enrollment for next year will be opening soon!

Rand Wade Oil is your local family-owned fuel and propane company in Greene County, North Carolina. We have been delivering oil and propane to homes and businesses throughout the region since our founding in 1971. Our drivers are trained to deliver your fuel promptly and safely; our technicians are certified experts; all our employees are committed to your total satisfaction.