Written on: February 28, 2022
As we’re sure you’ve noticed in recent months, energy prices are rising.
Across the country, Americans feel the pain at the gas pump, in airline rates, and in their home heating.
Rising fuel prices hurt everyone, from suppliers and sellers to customers needing to heat their homes and businesses. Families throughout central and northern Michigan ask us every day what is causing these price fluctuations.
We’d like to try and answer a few of the questions we keep hearing.
Speaking broadly, energy prices are tied to multiple factors. These factors are always changing and often out of everyone’s control. They include:
These factors cause prices to rise and fall. In the last decade, energy rates have been relatively low. Not so much right now.
As with so many of today’s problems, it began with COVID-19.
As the pandemic shut down travel and commerce worldwide, demand for oil sank. In response, energy producers scaled back. Now, economies are opening up again as more people get vaccinated, but global supply hasn’t caught up with increased demand.
Low supply and high demand generally make prices soar.
We understand that customers don’t always understand how negatively higher prices impact local fuel dealers. We don’t make more money when prices rise—we actually make less.
It’s like when the cost of coffee or milk goes up. Your neighborhood grocery doesn’t see more profits.
Even so, we want to work with all our valued customers to navigate this challenging time. Please reach out to us, and we may have suggestions for how you can reduce your energy costs.
Coyne also has several pricing and payment options that help take the uncertainty out of your fuel budget. Before the next heating season, you can take advantage of these programs:
If fluctuations in fuel prices are affecting your family, please contact us and we will look for a solution together!