Update on Heating Fuel Prices

Update on Heating Fuel Prices

Dear Friends,

The surge in all energy prices has been painful for everyone. Supply shortages across the board have also been causing concern.

As an example, ISO New England — the independent corporation responsible for keeping electricity flowing through our region — reported a high risk of rolling blackouts this winter. That’s due to a shortage of natural gas needed to make electricity. Electric rates have skyrocketed as a result.

However, there are a few silver linings amongst these dark clouds. First, propane’s price increases have been less than virtually all other fuels. Still, the future remains
uncertain because more American propane may be sent overseas to compensate for the cut-off in Russian supplies.

Second, future heating oil prices on the commodities market show a big drop-off in the months to come. This lines up with a prediction from the U.S. Energy Information Administration, which projects lower distillate fuel prices in the first half of 2023. (Distillate fuels include heating oil and diesel.)

P. Gagnon & Son has been taking care of our customers for nearly 120 years. There are many things we can’t control, but we will always prioritize our existing customers over new ones. We will always go the extra mile to keep you safe and warm. And we will be there when you need us.

Mark Gagnon, President