Dec. 17, 2007: High Oil Prices to Have Major Impact on Heating Bills for Fuel Oil, Propane
The daily spot price for crude oil peaked at $99.16 per barrel in late November, and although it has fallen since then, the EIA expects oil prices to remain “high and volatile” through 2008. As a result, the EIA’s Short-Term Energy Outlook projects both gasoline and diesel fuel prices to average “well over $3 per gallon” in 2008, with gasoline prices peaking at $3.40 per gallon in the spring.
But the hardship will be greatest for those using heating oil this winter, as they’re expected to shell out a total of $1,955 for heating, a 33 percent increase over last year’s expenditures. Households heated with propane are expected to pay $1,629 for heating, on average, a 20.7 percent increase over last year. And those living in the Northeast and using these fuels will suffer the most, with heating oil bills averaging $2,012 for the winter and propane heating bills averaging $2,301. On the bright side, households heating with natural gas will spend only 6.5 percent more on average, for a total of $865, while people with all-electric homes will pay 1.9 percent more, for a total of $838. The EIA includes the full heating season in its projections, from Oct. 1 through March 31.
Publication date: 12/17/2007