Coping with High Home Heating Oil Price Home Improvement Appliances

February 18th, 2011 by Lee Jones

Coping with High Home Heating Oil Price

High home heating oil prices are a huge pressure during winter months. However, there are some ways to cut down home heating bills.

High home heating oil price is something that bothers most American households during the cold winter months. Most families struggle to reduce the home heating costs, but the oil prices keep shooting up every year. There are several causes behind this high oil price and also there are some ways to cope with the oil prices.

The Impact of High Home Heating Oil Price

Oil prices are becoming a constant worry for Americans during the winter months. In a February 18, 2011 dailyfinance.com article “High Heating Oil Prices Continue to Drain Wallets in the Northeast,” business news reporter, David Schepp points out that in Northeast America, wintry months lead to an expenditure of around “$2,431 for fuel to fire boilers and furnaces” for an average householder.

Schepp refers to U.S. Energy Information Administration data obtained by Reuters. As per this data, the amount consumed is “about $200 more than what the Energy Department predicted in October — and almost $500 more than the average just a year ago.”

Causes behind High Home Heating Oil Price

What is the actual cause behind such a fuel scenario in the US? Experts are pointing out that crude prices are a direct reason behind high home heating oil price.

As per an energytomorrow.org article, “Heating Oil Prices,” crude oil is the main reason that triggers the oil price rise. The article points out that crude is the main component of heating oil. Hence, when crude oil prices go up, simultaneously heating oil prices hike up too.

In her October 29, 2007 msnbc.msn.com article, “Tips to Reduce your Home Heating Bill,” CNBC Personal Finance Correspondent, Sharon Epperson states that big oil companies refine crude into heating oil and the high prices incurred in the process are likely to be passed on to the consumers of heating oil.

Also, winter temperature is moving down steadily on an annual basis, thereby rising the demand and price of oil. Winter months are getting colder, especially in the northeastern region of America. In her January 29, 2011 boston.com report, “Prices Heat Up,” business reporter, Erin Ailworth talks about cold northeast weather as one factor behind the increasing heating oil costs. She refers to Phil Flynn, an energy analyst at PFGBest in Chicago. According to Flynn, the cold weather is a result of a series of big storms in the northeast region. As a result of this, crude and heating oil prices are going up.

Coping with High Heating Oil Prices

There are certain ways to deal with the high heating oil prices. Knowing about them can help an average householder to handle the pressure during winters. One option to deal with the high oil prices is to lock in the price for winter months. In her article, Epperson states that people can set a ‘lock-in’ price for fuel if they feel the prices will go up in future. This price cap helps a lot.

She also suggests purchasing a programmable thermostat, which can save upto $ 150 on an annual basis. For this, certain temperature adjustments have to be made to the thermostat.

Another way suggested by Epperson to check the fuel price rise, is to hire an energy expert to perform an energy audit. This provides a clearer picture about the amount of energy consumption and oil requirement. Besides, one can also use energy efficient units for home usage.

There are a few other ways too which can help in the cold winter months. As per energytomorrow.org’s article, heating bills can be reduced by using tight fitting insulated drapes, sealing air leaks and by taking help from home energy assistance programs.

By following the right methods, the pressure of home heating oil prices can be dealt with. People need to be more aware of their heating oil requirements and act accordingly to reduce their home heating bills.

Home Improvement Appliances