MAHANOY CITY — As the price of home heating oil, propane and gasoline rises, local distributors fear the worst for their customers.
Ettore DiCasimirro, owner of Skytop Fuels Co., Mahanoy Twp., said the price of home heating oil was $2.49 per gallon in October but as of Friday had climbed to $2.95.
In November 2020, DiCasimirro said, it was about $1.80.
“Since October we jumped up more than 40 cents, and I don’t think it’s going to stop there,” he said. “It can go up 10 cents or down five cents, you never know.”
He noted that oil companies have no control over the price, which is largely the result of supply and demand, and must pass increases to consumers.
Pipelines and politics
Upon taking office in January, President Joe Biden revoked the construction permit for the Keystone XL Pipeline; more recently, there are reports the White House is studying the consequences of shutting down Enbridge Line 5, an oil and natural-gas liquids pipeline that carries heating and transportation fuels from Wisconsin through Michigan to Sarnia, Ontario.
The Wall Street Journal on Friday editorialized that a shutdown would be a replay of the Keystone XL cancellation, “except this pipeline is already operating, so the damage would be much worse.”
DiCasimirro agrees.
“They’re saying that if they close this pipeline down, the prices could jump not by cents but by dollars,” he said.
At a White House briefing Tuesday, principle deputy press secretary Karine Jean-Pierre said the administration is not considering a shutdown of Line 5, according to Bloomberg, though it is the subject of dispute in the United States and Canada because of environmental concerns.
The Associated Press reported that Michigan Gov. Gretchen Whitmer, a Democrat and Biden ally, has demanded closure of the 68-year-old line because of the potential for a catastrophic rupture along a 4-mile-long section in the Straits of Mackinac, which connects Lake Huron and Lake Michigan.
Enbridge says that portion, divided into twin pipes across the lake bottom, has never leaked and is in good condition. The Biden administration has not taken a position but is under increasing pressure to do so, AP reported.
The U.S. Energy Information Administration, which provides independent statistics and analysis of energy and the economy, said retail heating oil prices are rising in the United States because crude oil prices are higher and inventory levels are lower compared with previous winters.
EIA said No. 2 home heating fuel cost $2.139 per gallon in October 2020 and $3.306 in 2021, an increase of nearly 55%.
Energy dependent
Jamie Barton, vice president of Jack Rich Inc., Frackville, said the increased price of petroleum products is a direct result of actions taken by the Biden administration, not only involving pipelines but also the stoppage of federal land lease agreements that affect domestic production of oil.
“When you stop producing oil, we immediately lose that energy independence,” Barton said. “Now OPEC’s in the driver’s seat; we gave them keys to the bus and said ‘you drive.’
“These actions by the current administration are filtering down to the consumer and will continue to do so. This was very political and Democratic.”
This time in 2020, Barton said that Jack Rich Inc. was charging customers about $1.65 per gallon, with the current price now at $2.99.
“Our supply is low; we’re at hand in mouth right now,” he said. “We did it to ourselves; we shot ourselves in the foot, maybe even in the knee.”
Barton said Jack Rich Inc., like other distributors, does not like to see higher prices that they must pass on to consumers.
Donald Fegley Jr., president of Fegley Oil Co., Tamaqua, said the price of heating oil was $2.739 as of Thursday, but that it’s changing daily.
“It changes so much, actually, there was one day when the price changed three times,” he said.
The fact that the current price has not jumped substantially in the past several days is a good sign, he hopes.
“This is definitely good for November; maybe that’s a positive sign,” Fegley said.
With cold weather on the way, he recommends customers get oil for their homes or businesses, even if not a full tank.
“With the holidays on the way along with the cold weather, I’m telling people put some (oil) in, then at least you have it,” Fegley said. “Even if you can’t afford to completely fill the tank, having some is better than nothing. You don’t want to run out.”
Not enough help
DiCasimirro said the price of oil will probably not come down with cold weather on the doorstep.
“I can’t see that happening; we’re going to have more demand that will affect the cost,” DiCasimirro said.
He said that while government assistance is available to help people offset their heating bills, it will not be enough.
“It may not go as far this year because of the price of fuel,” DiCasimirro said. “I think it’s going to be worse for the people this year.”
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November 14, 2021 at 09:00AM
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