US heating oil bills 'set to rise'

11 October 2006

American families who use domestic heating oil may see their heating bills rise in winter as production recovers from the effects of hurricanes Katrina and Rita, according to US government predictions.

"This is a very different scene than we had a year ago in the wake of hurricanes Katrina and Rita," Guy Caruso, head of the Energy Information Administration, told the Associated Press.

"As always, the [weather] uncertainty is substantial and significantly colder temperatures could lead to substantially greater expenditures," he added.

According to Mr Caruso, users of natural gas were the most likely not to incur any increase in heating costs.

With unstable weather conditions predicted and a potential knock-on effect on oil prices in the UK, now may be the best time for domestic heating oil customers to stock up on their winter fuel.

The news comes as the price of domestic heating oil for November falls by 4.88 cents, settling at $1.68 (90 pence) a gallon.