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Source: Barbara Hagenbaugh, USA TODAY
2007 - 2008 Winter Of Discontent Looms
For Fuel Costs
WASHINGTON - Consumers will see their winter heating bills rise an average of
nearly 10% this year as higher fuel prices and a colder winter will boost
costs to record levels, the government said Tuesday.
Heating oil customers will be hit hardest: Prices are forecast to be up 16% to
an average $2.88 a gallon.
To make matters worse, retail gasoline prices are forecast to drop only about
10 cents this winter from where they are now, as oil prices are forecast to
remain elevated, says Guy Caruso, administrator of the federal Energy
Information Administration.
With the decline in the price at the pump expected to be far less than normal
for this time of year, consumers will likely see a total winter energy tab
that is much higher than a year ago.
Consumers will pay a record $977 on average to heat their homes during the
October-March season, up $88, or 9.8%, from last winter, the EIA said.
The increase stems from a combination of expected increases in both demand and
price.
This winter is forecast to be 4% colder than the 2006-07 season, when
warmer-than-normal temperatures were seen throughout much of the USA, until a
cold spell hit in mid-January.
But winter is still expected to be 2% warmer than the 30-year average,
according to the National Oceanic and Atmospheric Administration.
"We do see most of the country experiencing a milder-than-normal winter
again," Michael Halpert, head of forecast operations at NOAA's Climate
Prediction Center, said at a conference at which the winter heating cost
outlook was unveiled.
Prices are expected to be up for all types of heating sources from last year,
but those who heat with heating oil and propane will be facing the biggest
increases.
The higher fuel costs reflect sharp gains in oil prices, which are expected to
be $20 a barrel higher this winter than last season, Caruso says.
Winter bills for heating oil customers will average a record $1,785 this year,
up $319, or 21.8%, from last year, the EIA predicts. About 7% of U.S. homes
use heating oil, which is most popular in the Northeast.
Costs for customers with natural gas, which is used to heat 58% of U.S. homes,
are expected to average $891 for the season, up $78, or 9.5%, from a year ago.
Caruso cautions that bills can vary widely based on where people live, how big
their homes are and where they set their thermostats. He also warns the
forecasts are subject to change.
"The biggest factor that can change these numbers is weather," he says.
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