CBS News Warns of High Heating Oil Prices this Winter–What You can do to Protect Yourself

Posted by admin on August 17, 2009 at 6:31 am

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CBS News’ August 11 report on Heating oil Prices.

Although the price of crude oil has been dropping, the cost of home heating oil is climbing and is now averaging $3.13 a gallon, according to a CBS News report that aired last week.  Consumers and oil dealers are looking ahead to the coming winter and they’re worried—really worried.

Although heating oil prices may remain relatively steady this year, the prospect of economic recovery is currently driving them up.

How high?  For 85-year-old Constance Copes in Waterbury, Connecticut, it’s an increase of 60 percent over what she paid last year, or $4.59 a gallon. In New England, fifty percent of households—eight million families—heat their homes with oil, which is averaging $4.00 per gallon.

And it’s not just consumers feeling the pressure; heating oil retailers are being hit hard. Many heating oil dealers are small, “mom and pop” operations, who are caught in a first-time credit squeeze—between high prices and cautious banks who are nervous about loaning the millions needed to buy oil wholesale. Eugene Guilford, who represents the 400 smaller dealers, predicts that 25 or 30 heating oil retailers might not make it through the next heating season.

At least 15 oil dealers in six states have gone out of business in the last year, leaving some of their customers out of luck. This includes F & S Oil, which closed after collecting more than $3 million from families who pre-bought their oil. One of those people was Constance Copes, who spent $5,000 and will now have to pay for her oil twice.

Connecticut Attorney General Richard Blumenthal is suing F&S and looking into the more than 3,000 complaints he’s received against oil dealers.

Even though heating oil pries are not as high as they were during last summer’s unprecedented oil price spikes, they will almost certainly be higher this heating season than in 2008, when the recession pushed them down to nearly two dollars per gallon in some areas.  As the CBS report shows, it’s as important as ever to stay informed on issues that affect the price and availability of heating oil.  Stay with HeatingOil.com to help you understand the fast-changing and myriad issues that surround home heating oil and how those issues affect you and your pocketbook.  Our site was created to empower heating oil users with information so they can make educated decisions surrounding their heating oil and energy needs

Faced with the prospect of rising heating oil prices, the best way to ensure maximum savings is simple: conservation.  No matter what the price of heating oil, using less of it means paying less for it.  Take advantage of HeatingOil.com’s information on steps you can take right now to burn less oil this winter.  The article “DIY Home Energy Conservation Projects that will Save You Big Bucks” is a great place to start.

When it comes to deciding how to buy your heating oil this winter and who to buy it from, remember that HeatingOil.com’s referral service is a quick and easy way to pay less for full-service oil.  The service works with the most trustworthy, well-established, and reputable oil dealers in your area who can offer you real savings. All HeatingOil.com dealers have been screened for insurance, licensing, and financial viability. Heating oil offers are thoroughly reviewed to ensure fairness and clarity.  To take advantage of the referral service, just click the “Get Started” button, and you’ll have an offer for discounted oil in just a few days.

Although the CBS story doesn’t paint a rosy picture of what’s ahead for heating oil users this winter, a combination of information, conservation, and utilization of tools like HeatingOil.com’s referral service will help you get through the heating season with a minimal dent in your pocketbook.