Sunday, August 10, 2008

Keep in mind that fuel oil and diesel are made from the same refined oil stock so their price are closely connected.

http://www.seacoastonline.com/apps/pbcs.dll/article?AID=/20080806/NEWS/808060326/-1/NEWS01

Oil prices could cause crisis for Maine homeowners
By Amy Phalon
yorkweekly@seacoastonline.com
August 06, 2008 6:00 AM
How high will they go? It's the question everyone is asking these days as crude oil prices climb, the average price of heating oil in Maine being $4.42 a gallon as of Tuesday.
"We are headed for what might be a crisis situation this winter," Town Manager Rob Yandow said at a recent selectmen's meeting, during which he discussed the town's intention to develop a program to offer heating assistance to households in need.
According to University of Maine professor of economics Jonathan Rubin, "Eighty percent of Maine's homes are heated by oil."
A large percentage of others are heated by propane, natural gas or kerosene, which are also at record prices. The vast majority of Maine households are facing a very expensive winter.
"This is obviously a very difficult time for consumers," said John Peters, president of Downeast Energy and Building Supply, which serves households in York. "It is unprecedented; the speed with which it is increasing. It is draining a lot of cash out of the economy."
While there is no argument that fuel prices have increased rapidly, the reason prices are climbing and whether they will fall again is unclear.
"This is an unprecedented time where even experts don't know what's driving all the forces," Rubin said. "There is no consensus on whether or not the price is going to go up or come down."
This uncertainty is what has Rubin worried.
"It's going to be hardest on households on fixed and low incomes."

1 comment:

Mac said...

Nearly half the households in the northeastern region of the United States use heating oil to provide part or all of their space heating needs.




discount heating oil ma