Households in the Northeast that use oil for heat will pay record prices this winter–that’s according to a new federal report from the US Energy Information Administration. Heating oil prices are expected to increase by almost ten percent this winter. The price of oil has doubled since 2004.
“If the weather forecast holds true it will be slightly warmer this winter but even so with higher heating bills consumers will be paying more.” says Jonathan Cogan of the EIA.
The price of natural gas is also expected to increase by 5 percent this year.
In the Northeast 27 percent of all households heat with oil, and 52 percent use natural gas. Electricity, wood and propane account for the rest.
The number of households using heating oil has decreased of by 17 percent since 2004, as the price of oil has gone up dramatically. Crude oil prices are reliant on the global market, and fluctuate with the demands of those markets. In contrast, North America has its own natural gas market, and production of natural gas here is growing.
“We are not paying more because we are producing more, ” say Cogan.
Still he warns that, “Households in the Northeast are likely to be facing the highest heating bills that they have seen during the course of the winter.”