Shocking spike in fuel prices is hurting all of us - PGagnon
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The P. Gagnon & Son Blog

Shocking spike in fuel prices is hurting all of us

Unsurprisingly, we’ve been getting many calls around two connected issues- the surge in fuel prices and supply concerns. People are astounded by how much prices have risen, and how fast. They are also concerned that there will be interruptions in supply that will cause them to run out of fuel.

Prices were already up more than a dollar this season from the previous year because of issues related to the pandemic. Then, the Russian invasion of Ukraine shocked the energy markets, sending crude oil up over $120 per barrel.

To give you a sense of this of how this affects us and you, on March 2, we received notice at night from our suppliers that their prices were going up 20 cents the next day. Then, on March 3, they went up three more times- a total of 60 cents in just 24 hours. Propane prices are higher as well, although not quite as dramatically.

What’s coming next

We don’t know where things will go from here. One thing we can tell you is that we hate this as much as you do. Some people are under the misconception that when prices rise, we make more money. The opposite is true. People cut back usage. They have trouble paying their bills and our receivables skyrocket. Meanwhile we must pay our suppliers in just 10 days. It is an awful mess for everyone.

One thing you can count on is that we will not let you run out. We have been in business over 118 years and have very strong relationships with suppliers and financial institutions. We are already getting calls from customers who are with other companies who can’t say the same, and who are unable to get deliveries when needed. You don’t have to worry about that with us.

If you have having trouble paying your bill talk to us. Many times, we can work out something to give you more time, especially if you’ve been with us a while. Remember that we do offer price protection options and will be coming out with those sometime later this spring.

Nothing will make us happier than when prices start dropping. Until then trust us to look out for you and pray for the people of Ukraine.