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Heating oil, gas prices rising in Philly area in wake of Iran war
Consumers are experiencing rising heating oil and gas prices due to the ongoing Iran war, with experts and industry leaders noting significant price increases and offering advice on coping strategies.
PHILADELPHIA - Consumers in the Philadelphia area and surrounding states are seeing higher prices for heating oil and gasoline as the Iran war disrupts global energy markets.
Wholesale fuel prices rise with market uncertainty
What we know:
The wholesale price of heating oil, diesel fuel and gasoline is increasing and could continue to rise with ongoing uncertainty due to the Iran war.
Experts say gas prices typically follow heating oil price trends because a gallon of gasoline is made up of 50 to 60% crude oil.
This means that as crude oil prices spike, consumers can expect to pay more at the pump and for home heating.
David O’Connell, president of Wilson Oil and Propane in Wallingford, said, "We're getting price notices twice a day or more from the supply chain where prices are jumping anywhere from say 30 to 35 cents at a time." He added, "Almost 72 cents since Monday due to what is happening."
O’Connell explained that customers with price protection plans are shielded from the current volatility, but those without such plans or with expiring plans are most exposed to market swings.
Rising gas prices in Philadelphia, South Jersey and Delaware
"If this keeps going and we keep having to raise prices to maintain margin integrity, then I think yes, the phones will start to light up. And people will probably start asking a lot of questions at that point due to prices starting to skyrocket on them," said O’Connell.
Gas prices in the Philadelphia five county area reached $3.11 on Tuesday, up nine cents overnight and nine cents in the last week, according to AAA.
In South Jersey, the average is $2.98, up ten cents overnight and ten cents in the last week.
Delaware’s average is $3.01, up thirteen cents overnight and six cents in the last week.
Jana Tidwell with AAA advised drivers to focus on fuel efficiency.
"Consider consolidating your trips. Instead of running errands every single day, once you are out to run one, make all of the stops that you need to make while you are out. that will help stretch that tank," said Tidwell.
Experts say the uncertainty with Iran could lead to further price increases and customer concerns as the situation develops.
What we don't know:
It is unclear how long the price increases will last or how the Iran war will continue to affect the fuel supply chain. There is no official word on when prices might stabilize.
The Source: Information from AAA and Wilson Oil & Propane.