A jump in heating costs
during the winter months may slow a consumer shopping spree that
has kept the U.S. economy expanding this year.
Heating oil prices rose 40 percent in the past year, as crude
oil costs surged on concern that a war in Iraq may disrupt Middle
East oil production. Rates for propane and natural gas have risen
about 60 percent. Weather forecasters say the northern U.S. will
have a colder winter than last year, when temperatures were 18
percent above average in the Northeast and 13 percent above normal
in the Midwest.
Seifert Systems Invests in Energy Efficiency to Strengthen Operations
For manufacturers, energy is more than just another operating expense. It plays a critical role…
Learn More
“When the price of propane is high, it’s really hard for
everybody here,” said Eileen Barney, the heating assistance
coordinator for the Bois Forte Reservation Tribal Council in
Minnesota. She has received 25 percent more applications for
heating assistance on the reservation this year than last.
Heating bills from October through March will cost consumers
about $11.6 billion more than last year, based on Energy
Department estimates. The government projected that home heating
costs would rise 25 percent for natural gas users, 40 percent for
heating oil customers, 19 percent for propane buyers and 13
percent for those heating with electricity.
Bloomberg News
