Understanding the Energy Market and Price Fluctuations

The Realities of Propane Pricing and Supply

propane prices new jerseyHere at Blue Flame, we’ve been receiving some phone calls lately about two related concerns: the recent spike in fuel costs and potential supply issues.

As you’ve likely noticed at the gas pumps, prices have been extremely volatile. Propane costs have also fluctuated dramatically and swiftly, thus, many people are left unsure of things. They’re also concerned that shortages in supply may prevent them from receiving a propane delivery.

To put things into perspective, rates had already risen more than a dollar this season owing to the ongoing COVID-19 pandemic. Then came Russia’s invasion of Ukraine, which sent oil soaring more than $110 per barrel and caused havoc in the energy markets.

For added clarity, here’s how the chaos in the energy markets is affecting us—as well as you. On March 2, our suppliers contacted us to inform us that their costs would rise by 20 cents the next day. Then, in just 24 hours, they increased three more times for a total of 60 cents.

Looking Ahead

Truth be told, there’s no telling where propane costs will go from here. What we can tell you is that we share all unhappiness with the current situation. Some people believe that when costs rise, we make more money. Things are actually the opposite. When prices spike, customers reduce their propane usage. They have issues paying their bills, and our outstanding receivables mount up. Meanwhile, we’re required to pay our suppliers in 10 days or less. It becomes a messy situation for everyone.

However, you can always rest assured that we’ll have the propane you need. We’ve been in business for decades, and we have excellent long-term partnerships with our suppliers and financial institutions.

Over the last few weeks, we’ve already received calls from customers of other propane companies that don’t have the same level of security for their supply as we do. They tell us that they can’t get deliveries for nearly 20 days! With Blue Flame, this is something you simply will never have to worry about.

Controlling Your Fuel Costs

Do you find yourself struggling to pay your Blue Flame bill? You’re not alone. Get in contact with us now before you get behind. We can frequently work out a solution to best fit the situation.

In the coming months, we’ll be opening enrollment for our SmartPay monthly budget plan, which helps to alleviate large winter fuel bills, and spreads your costs into even monthly payments throughout the year. Interested? Call us today to learn more.

At the end of the day, nothing would make us happier than seeing propane prices begin to drop. Count on us to be with you every step of the way.

Blue Flame is dedicated to providing our customers across New Jersey and Eastern Pennsylvania with the most reliable propane delivery at the best possible price. Looking to switch your propane provider this season? Get in touch with us today.