Dec 9, 2008 10:10 pm US/Eastern
Cheap Oil, Gas Make Silver Lining In Dark Economy
BOSTON (WBZ) ―
Despite the recession, consumers are about to get a break on their bills. It's going to cost less to heat homes this winter, and gas prices may stay down.
The government expects gas prices to land just above $2 a gallon over the next year. Those who use home heating oil will notice a drastic drop from last year.
The average cost for the winter is down nearly $400 to less than $1,600, which is welcome news for those struggling to get by.
In a time when it seems all talk about the economy is bad news, Americans are conditioning themselves to brace for something else to cost more. So it's nice to hear that heating homes will be less expensive this winter.
Paul Berkeley was concerned this year would be worse.
"I was worried about where it was going, it was getting pretty steep," he said.
But instead of paying nearly $5 a gallon he'll pay much less.
"The statewide average for a price for a gallon of home heating oil is about $2.50 a gallon, which is down $2 a gallon for full service delivered to your home -- a significant change," said Michael Ferrante, President of the Massachusetts Oil Heat Council.
Ferrante says the swing in oil prices from the summer to now is historic. It's good news for people like Berkeley, but in this recession it's not enough to take all the worry away.
His 280-gallon tank may be cheaper to fill this winter, but with two kids in college and all the other bills he's like anyone else. He worries about his job, his wife's job and about staying in the house he grew up in.
According to the latest forecast released on Tuesday, on average those with home heating oil will pay nearly $400 less than last year. That is everyone except those folks who locked in back in July when so many were panicking. Those who locked in over the summer will end up paying nearly twice as much per gallon because some locked in at nearly $5 a gallon.
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