Record Oil Prices Likely to Drive Up the Cost of Staying Warm

By Mark Bevis on Monday, August 22, 2005.

listen:

Oil prices rose again today (Monday)

Sabotage in Iraq led to a power failure on an oil pipeline stalling more than 1.6 million gallons and sending the price of crude oil higher.

Drivers are feeling the pinch most directly at the gas pump.

But it won't be long before high oil prices will be reflected in heating bills.

NHPR's Mark Bevis has more.

Last Spring, the heating oil company Johnson and Dix was offering its 30 thousand customers the right to lock in the price they would pay for heating oil this winter.

Those contracts always seem to be a gamble.

And last spring that gamble was going to cost about 2 dollars a gallon.

It had been about 1.40 a gallon the year before.

But for those who didn't take the offer, it's looking right now that they're going to pay about 2.20 a gallon for heating oil.

And that's if the price stays rights where it is.

And Tom Frawley, a Vice President at Johnson and Dix says the market is not looking very good.

Tape: