Heating costs could rise by 28%

2 October 2007

Heating oil customers could find the cost of heating their home is 28 per cent higher this winter than last, according to an estimate produced by an industry body in the US.

Crude oil has rocketed in price this year due to an unexpected combination of geopolitical and economic events, and the cost of heating oil has followed suit.

The National Energy Assistance Directors' Association (NEADA) has forecast that will result in the heating bill for an average home using heating oil rising from $1,433 (£702.40) in winter 2006-07 to $1,834 (£898.96) during winter 2007-08.

Mark Wolfe, executive director of the NEADA, warned that some households would face a tough few months.

"People who could afford last year's prices, can't afford this year's," said Mr Wolfe.

A similar pattern has emerged in the UK and statistics compiled by BoilerJuice show that the average cost of heating oil has grown by around 12 per cent in the past six months.

Prices generally rise significantly during the high demand of the colder months and heating oil users may find the best way to keep the increase in their fuel bills to a minimum is to purchase their winter supplies as early as possible.