As we drive around town we can’t help but notice the rapidly changing price of gasoline. For many of us across the nation it has already broken the $3.00 per gallon barrier. This overall increase in the price of gas at the pumps is a close-to-home reminder of what’s happening generally in the energy sector.
Per the U.S. Energy Information Administration, “The July Short-Term Energy Outlook (STEO) remains subject to heightened levels of uncertainty related to the ongoing economic recovery from the COVID-19 pandemic. U.S. economic activity continues to rise after reaching multiyear lows in the second quarter of 2020 (2Q20). The increase in economic activity and easing of the COVID-19 pandemic have contributed to rising energy use. U.S. gross domestic product (GDP) declined by 3.5% in 2020 from 2019 levels.”
In the first half of 2021 regular gasoline retail prices in the U.S. have averaged $2.78 per gallon. Compare this with the first half of 2020 average of $2.20 per gallon. Then in June 2021 the average price of gasoline jumped up to $3.06 per gallon. This was the first time the monthly average was more than $3.00 per gallon since October 2014.
In some areas of the country, due to recent extreme heat, we have been experiencing rotating power outages and huge spikes in the cost of electricity and natural gas, not to mention the price of gas. As people struggle to stay cool the demand for electricity increases and the supply cannot meet the demand.
An extreme example of what’s happening can be seen in California. In San Francisco the price of gasoline just hit $5.60 per gallon. The California average as this article is written is $4.31 compared to the national average of $3.16.
Commercial electricity rates in California average 13.41 cents/kWh. This is 32.9% higher than the national average commercial rate of 10.09 cents/kWh.
Across the country the cost of electricity for commercial use ranges from 6.86 cents/kWh to 34.88 cents/kWh. This is an extreme spread.
So what is a business owner to do? How can you protect yourself against this volatile market? You are lucky if you are in a deregulated state. Here at CES we offer our services to you and wade through this mess, overcome the uncertainties and work until we get you the absolute best price in the current market for your electricity and natural gas.
Now is the time, more than ever, to lock in a fixed rate. Let the market do what it does. You can predict your energy bills when you know what you are paying is a low fixed rate.
Give us a call at 866-748-2669 if you are in a deregulated state. We will give you a free rate analysis and work with our suppliers to get you the best fixed rate in the current market.