Sep 25, 2007 1:04 pm US/Eastern
Home Heating Oil Costs Could Skyrocket This Winter
BOSTON (WBZ) ―
If you use oil to heat your home, brace yourself for what could be a brutal winter.
According to a
study put out by the National Energy Assistance Director's Association, you can expect to pay $1,834 for home heating oil this season.
That's about $400 more than 2006, when the cost was $1,432 - a jump of about 30 percent.
From 2000 to 2005, the average cost was $935.
It's a problem that is almost exclusive to the Northeast. Only eight percent of the country uses heating oil, but it's used in 80 percent of the Northeast.
This jump in prices is being blamed on concerns about supplies and a huge spike in oil prices, which are now just under $81 a barrel.
Another key factor is the weather forecast. Right now, long-range forecasters say this winter will be colder than last year and the government's Energy Information Administration (EIA) says that means you'll pay more for oil. The EIA will come out with its own winter heating estimates in two weeks.
But there are alternatives to using oil for heat.
You can switch to natural gas. Those customers are expected to pay half - $881 - of what oil customers will pay this winter. The downside to that is the initial cost of switching. Depending on the system you buy, it could cost thousands of dollars to convert.
You could install a wood burning or gas stove. Those could cost $1,000 to $2,000, and that's before the installation. It could also raise your homeowner's insurance rates. You'd also have to buy the wood - at about $250 a cord.
There is also the space heater option. Those prices can really vary. But the devices are inefficient, they use a lot of electricity, and there is a risk of fire.
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