No need to adjust your screens. Unfortunately, the price of everything seems to be on the rise these days – groceries, building supplies, flights and now, oil. The price of heating oil is currently as high as it has ever been and unfortunately, there are no signs that it will be dropping anytime soon. We know it’s frustrating and overwhelming, so we thought it might help to provide a little more context on how the price is determined and the factors that can impact it.
Supply & Demand: Heating oil is a commodity that is traded on the open market so general economics come into play here. The price increases in the winter when demand is high and reduces in the summer when demand is low.
Market Speculators: Since oil is traded on the open market, the price can also change based on market speculators – traders betting the price will increase or decrease.
Geopolitical Situations: This is the direct impact that world events can have on the price of oil and is a critical factor at play right now given the war in Ukraine. This political unrest is causing the price of oil and all its derivatives (gas, diesel, heating oil, jet fuel, etc.) to increase in price.
Unfortunately, we, along with all other oil providers, have no control over this and we are all ultimately paying the price for the war in Ukraine. We can only hope that the situation is resolved soon and the market can readjust itself.
In the meantime, we want to ensure all our customers are informed of this situation. We understand the strain this unprecedented price increase may have on everyone and want you to know we are here to help. Particularly for those on our Budget Payment Plan, your costs will not align this year given oil has risen by 100% so far this season. If you have concerns about your account balance and/or payment plan, please don’t hesitate to contact our Credit Manager, Alan MacKinnon (alan@scotiafuels.com). He is ready to help work with you to develop a new plan if necessary.
From all of us at Scotia Fuels, we appreciate your understanding and continued support during these uncertain and difficult times. Some members of our team have family in Ukraine, so this war is hitting very close to home for all of us. We stand with Ukraine in opposition to this unjust war and pray it is resolved quickly.