Heating Your Home Just Got More Expensive
Wednesday, November 7th 2007, 5:00 pm
By: News On 6
Record oil prices could mean record heating costs this winter. At one point during trading on Wednesday, oil was being sold for a record high of more than $98 a barrel. The News On 6â€™s Chris Wright reports with temperatures finally dropping this week, many of us finally had to turn on the heat, and for anyone using propane, it may be a pricey winter.
Ever since Doug Cooper and his family moved to their Creek County home 27 years ago, they've used propane.
"When we first moved in, I think it was about 63 cents a gallon. I think this last batch ran a $1.93 or $1.96, I'm not sure," propane customer Doug Cooper said.
Fortunately, Doug says he relies on wood from his land for about 80% of his heating needs, so for now, he can handle the spike in propane costs.
"It's not breaking the bank yet, but it might someday," said Doug Cooper.
But other propane customers may not be as lucky this winter. Propane dealers say they have no choice but to pass on their costs to consumers this winter, so as long as the price of crude keeps going up, so will the price of propane.
"If you haven't got your propane yet, then you're going to have to pay a lot for it, way more than you probably have in a long time, well, ever," said Fred Isaacs of Reliable Propane.
As the price of oil crept towards $100 a barrel on Wednesday, Reliable Propane owner Fred Isaacs continued to make his deliveries. He says people in his business have their hands tied.
"Propane is a derivative of crude oil, anytime crude goes up like that it's going to affect the price directly," said Fred Isaacs of Reliable Propane.
And Doug, who remembers the days of single digit oil prices, says the probability of triple digits is amazing.
"It was selling for $3 a barrel then, it's fascinating to see things go up as high as they are now," propane customer Doug Cooper said.
Reliable Propane says their prices may go as high as $2.50 or $2.60 a gallon before the end of the winter. As for Natural Gas, the U.S. Department of Energy expects prices to rise by 10% across the country this year.
Watch the video: The Price Of Keeping Warm Going Up