In addition to the lower prices Americans are paying for gasoline, further savings are being made over the winter months, thanks to the falling price of oil. Indeed, when residents go to top up their oil tank home heaters, they will enjoy billions of dollars worth of savings. Roughly 6.2 million homes in America, primarily on the east coast, depend on heating oil during the cold weather. The area that spans from Maine to Maryland accounts for approximately eighty-seven percent of heating oil usage.
Despite the recent fracking boom, area consumers have not experienced huge changes in the price of natural gas. Peco customers have seen prices rise this year to $0.57/Ccf, from $0.54/Ccf the previous year. The price has dropped slightly for PGW customers, to $1.37/Ccf from $1.41/Ccf the previous year. For many years, oil has been far more expensive than natural gas for heating a home. This has posed a financial obstacle to homeowners, who often use over a thousand gallons of oil each winter.
Notwithstanding, across the world, crude oil prices have dropped. This has led to the price of heating oil in America falling $1.10, from twelve months ago, to less than $3 per gallon. Heating oil prices have not been this low for almost half a decade. Relative to average winter usage, a dollar reduction in price could translate to about $3 billion of savings for residents who depend on heating oil as their source of heat during the winter. This allows individual homeowners to enjoy savings worth hundreds of dollars. People who usually dread receiving their utility bills will find this news a welcome relief. Natural gas is still a less expensive fuel nationwide, however in Pennsylvania, average gas prices are more costly now for residential consumers.
Heating Oil Drops To An All-Time Low:
Regional oil brokers will also benefit from the sharp fall in prices. Frequently, these businesses are small, family run enterprises that have been squeezed for years, by a growing network of natural gas mains. Reduced prices mean lower costs for filling trucks, and increased probability that consumers will settle bills promptly.
The drop in prices has allowed some relief from major budgetary concern for lots of homeowners this winter. In Pennsylvania, the circumstances are especially rewarding because this state depends on heating oil heavily. Area of the east coast have restricted natural gas access via pipelines, so almost seventy percent of homeowners use oil for warmth. As winter sets in, heating oil companies in Pennsylvania have been busier than ever.
Better Home Heat Council keeps the consumer informed and advised of the economical and efficient use of oil heat. We support local oil companies that provide a range of services and products. Click here to search for a local home heating oil dealer.