Diesel prices are increasing every day. The cost of a gallon approaches a record high of $5.816 back in 2022. Some heating oil businesses have had to change their daily operations due to price increases.
LONDONDERRY, NH – Home heating oil companies are facing rising cost pressures as rising crude and diesel prices linked to Middle East tensions squeeze margins and disrupt operations across New England.
The latest increase follows a cold winter that increased demand for heating oil, leaving consumers and suppliers exposed to higher costs. Businesses say they are trying to avoid passing those increases on to customers, even though costs are rising significantly.
“We had to lower our prices to be able to get the phones that started ringing louder. People are putting off car deliveries because the prices are too high, and we can’t blame them for that,” said Andrew Chesney, owner of Southern New Hampshire Energy.
Fuel oil suppliers say volatile energy markets make it difficult to plan, as rising crude prices are accompanied by rising costs of the diesel fuel needed to deliver the fuel.
Chesney said a month ago it cost about $8,000 to fill up one of their delivery trucks with diesel, and today it’s between $12,000 and $15,000. Between filling the four trucks and getting all the necessary fuel and gasoline, it costs Southern New Hampshire Energy about $50,000 a day.
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The cost of filling a delivery truck exceeded thousands last month. (Kailey Schuyler/Fox News)
“We try to cut back when we can save people money, but it’s hard for us. We don’t make a huge profit at all,” said Chesney.
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Some companies are implementing new policies to manage rising costs. In Massachusetts, Atlantic Oil Company posted a disclaimer on its website saying: “Due to recent and ongoing events in the Middle East, we are currently suspending any deliveries under 125 gallons. We are also adding a $40 charge to any orders that take less than the 125 gallon minimum.”
Atlantic Oil Company limits oil deliveries amid Middle East conflicts (Kailey Schuyler/Fox News)
“I have people who come in, long-time customers who say, ‘you know, I can’t really pay this,’ and we try to help them. We say, ‘you know, we can, take the payment now,’ because in the summer you won’t need to pay for your oil, usually,” said Ted Triandafilou, General Manager of the Atlantic Oil Company.
Triandafilou said his company is facing similar jumps in diesel prices.
“Depending on the size of the truck, we have a lot of trucks of different sizes. So it could end up. Right now, it’s over $12,000 to fill a truck as it was probably, you know, $5,000-$6,000 about a month ago.”
Both operators said daily price fluctuations add to the uncertainty.
“We really don’t know where it’s going to go from here and prices are going up and down anywhere from 10 cents to 25 cents a day right now with everything that’s going on in the world,” Chesney said.
“Prices change every day just like fuel prices tend to do, and most of the time, I’ve seen … prices go up in the morning – let’s say, jump 20, 30 cents, crazy numbers – and then slowly during the day, they go down, but when the market closes, they go up again,” said Triandafilou. “It’s getting to the point where I don’t even bother to show the price because I would just run out and change it again.”
According to AAA, the average cost of a liter of diesel on March 20 was $5.15, approaching a record level of $5.80 by 2022.
“The last time we saw diesel prices go up like this was in 2022 after Russia invaded Ukraine,” AAA spokesman Mark Schiedrop said. “The current situation is a little bit different because we are seeing a big impact on production. We are also seeing all those goods flowing out of the Strait of Hormuz being affected. So, there is a long-term impact here.”
Schieldrop said the record could be broken if the dispute continues. Even if the conflict ended today, prices would not drop tomorrow.
“It is true that prices go up like a rocket and fall like a feather,” said Schieldrop. “It will take a long time, and many analysts believe that the impact may last for more than a year, even if the conflict ends in a short time.”
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Schieldrop says it may be difficult to cut fuel prices to save money.
“We urge people to try to drive less. That’s a tough deal for people who have to drive, but to package your trip, you’re trying to drive more economically,” Schieldrop said. “Slow down on the gas pedal, drive slowly, obey the speed limit, and you can increase your fuel economy dramatically.”
For homeowners, demand may ease in the coming months as warmer weather reduces heating needs. But for businesses, the off-season brings its own challenges.
Southern New Hampshire Energy heating oil prices were seen at $4.89 on March 20. (Kailey Schuyler/Fox News)
“We’re actually going into our slow season. So everybody’s going to be involved in getting heating oil until winter,” Chesney said.
“So it’s going to start slowing down for our employees, and we’re going to have to struggle ourselves to run the business and keep things going until the prices come down.”
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Companies like Southern New Hampshire Energy rely on other utilities, including plumbing, heating and cooling, to make up for seasonal drops in fuel demand.
“Support the area. We’re a family owned and operated company. We’re not a corporate company, so we organize our business around the family. And we’re a small business trying to make our living right now,” Chesney said.
