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Tuesday, October 07, 2008

Heating Costs Slated to Increase this Winter

FOXBusiness

Even though oil prices have dropped considerably in recent weeks, falling commodity prices will not bring down your heating costs this winter, according to the Energy Information Administration.

The agency is projecting heating costs to go up this winter, with fuel oil to experience the greatest spike in cost. In a release issued Tuesday, the Energy Information Administration projected that the average household fuel oil expenditures will be about $2,388; nearly $450 more than last season.

Homes that use natural gas will also spend about $155 more than last year. The agency projects average natural gas expenditures to be about $1,010.

But homes that use natural gas and fuel oil for heating won’t be the only ones dealing with higher costs. Heating costs are expected to increase across the board -- households using propane will see an 11% increase on average, those using natural gas can expect an 18% jump in price and heating oil will see a 23% increase. Homes using electricity will experience the smallest average cost increase, at around 10%.

These price increases occur ahead of a winter that the National Oceanic Atmospheric Administration (NOAA) expects to be 2.4% colder than last winter in the Lower 48 states. NOAA does expect those projections to vary considerably by region.