Current Fuel Oil Prices In Ct - A file photo of a Santa Energy driver making heating oil in Fairfield. Heating oil prices in Connecticut are set to rise in the second half of August 2022, creating a speculative game for homeowners looking to close deals for the heating season that begins in October. Ned Gerard / ST
With heating oil prices set to rise in the second half of August, Connecticut homeowners could face a $170,000 increase in heating bills by next May if prices do not rise from current levels.
Current Fuel Oil Prices In Ct
Statewide in the third week of August, heating oil prices in Connecticut averaged $4,700, up 12 cents from last week, according to a weekly survey published by the Connecticut Department of Energy and Environmental Protection. This ended the increase in prices since the beginning of June.
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While prices peaked in the second week of May at $637, average gasoline prices in Connecticut are still 70 percent higher than last year.
This is a new point of pain for some family budgets, after the increase in prices during the outbreak of CCIDID-19.
The nonprofit Operation Fuel has seen more than 2,000 people request help with heating oil bills in just a few weeks this year, a record number according to Brenda Watson, executive director. In fiscal year 2021, Operation Fuel distributed $3.3 million in aid to 13,500 homes in Connecticut, an average of $250 each.
"I'm not sure what's going on — it's hard for us to figure out what's driving the demand," Watson said. "We usually see people looking for fuel assistance in late September through October when it's cold."
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Watson said factors include rising oil prices this year, concerns that oil prices will fall, and inflationary pressures on household budgets that include gas and electricity at various times this summer.
In Connecticut, about 44 percent of households rely on heating oil, according to the U.S. Energy Information Administration, compared to 36 percent who use natural gas.
In addition to Operating Fuel, homeowners can receive assistance from the Connecticut Energy Assistance Program, with eligibility determined by a household income level of less than $48,900. Homeowners can get anywhere from $250 to $600 in heating cost assistance, and eligible tenants. able to qualify for $100 to $150 in aid.
Many oil shipping companies also offer plans that spread payments over 10 months to avoid January and February bills, while others offer 12-month plans.
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Oil companies big and small are working on their costs, looking to hire freighters this winter and with diesel prices still high for tank trucks.
Jeff Woosnam, CEO of Petro's parent company Star Gas Partners, said last month that his company is increasing bad debt, increasing its borrowing if it needs more money to pay for these operations. snow
"We've experienced high energy prices in the past," Woosnam said on a conference call with investment analysts in early August. "We are focused on efficiency, managing ... costs and proactively managing costs and margins with our commitment to providing the best in customer service."
The biggest unknown, of course, is the mercury - a less warm winter would go a long way in easing the pressure on the family. But any prolonged cold weather could add to the pressure, as nonprofits like Operation Fuel are limited in their contributions from additional funding and private business donations.
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Watson said Operation Fuel plans to contact donors for additional assistance to increase its ability to help families.
"We're going to do a fair bit of that, especially when we hear what's going on and understand why people are demanding the level they are," Watson said. "That's information we can share with our donors." Oil prices are on the rise, with the benchmark West Texas Intermediate (WTI) jumping from an average of $75 a barrel in December 2021 to $100 in May 2022. U.S. Oil and diesel supplies are declining and refining capacity is a challenge, while export demand remains strong.
Much of the market commentary focuses on oil prices remaining at record levels in real terms (inflation). The price of WTI oil reached $128 a barrel in July 2008, which is actually $169 today.
However, consumers buy refined products, not crude oil. The national average for gasoline prices, which reached $4.46 per gallon in May, is below the 2008 peak of $5.35. early summer. Although the national average daily price is more than $5 a gallon, the price can continue to rise significantly if it is believed that consumers have experienced and, to some extent, endured that price.
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There are challenges, though - inflation out of proportion to fuel prices, falling real wages and the magnitude of the near-term price shock. In addition, the wide price spread of refined products and crude oil, especially diesel, increased this effect compared to previous quarters.
These factors raise questions about whether US oil consumption can withstand high prices for long. If there is no adequate response in the near term from crude oil production or refining, the destruction of demand may be the only change that can ultimately cause the price of oil to fall and go back.
American consumers have historically gradually reduced their fuel consumption as prices have risen. This is because most customers have to drive to work, school, grocery stores and other places every day. In addition, there are no other bad methods that can be changed immediately. Using public transportation is a popular alternative for those in cities, and buying a gas or electric car at the first sign of high gas prices is not an option for many people.
For this reason, the demand for oil is called 'price inelastic', which means that when the price of the product rises, the quantity demanded decreases at a slower rate in the sectors. In a price-elastic factor, the quantity demanded will fall at the same rate or faster than the increase in price.
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With retail price confusion such as the current one, there is a risk due to price volatility that oil prices could reach a point where consumers would discount other products, which is a threat to the wider economy.
Although the price of gasoline is high compared to inflation, consumers are not able to say what they spent on gasoline 10 years ago as a reflection of their current household budget. Car purchases, work and travel options and travel plans are made with the latest prices in mind.
Consider someone who bought a car in December 2020, when gas prices were only $2.20 a gallon. Buyers generally expect oil prices to remain at or near that level during ownership.
The long-time best-selling car in the United States, the Ford F-150, has a combined fuel economy of 20 miles per gallon for the V-6 model in later model years. With Americans driving an average of 13,474 miles in 2021, the F-150's annual cost of $5 a gallon will rise to $1,886, or $157 a month, if mileage doesn't change.
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Put another way, American workers. In the first quarter of income (down 25 percent), 9 percent of income will go to buy fuel now compared to 4 percent less than last year.
Distillates - a class of refined products that include diesel, home heating oil and jet fuel - are in short supply worldwide and subject to rising prices. US diesel prices are up 53 percent since December, while gasoline prices are up 34 percent. The main reasons: the reduction of US refining to CCIDID-19 in 2020, and the international debate from February to replace the imposed export of Russian diesel with crude oil (which gives more distillate than other types of crude oil).
For the current stretch, diesel will average $7 a gallon nationally — up from an average of $550 in May 5.57 — if WTI rises to $165 a barrel, inflation-adjusted for 2008.
This inflation is particularly felt by transport and agricultural users, increasing the cost of transport, transportation and food preparation. For a farmer who plants 1,000 hectares of corn this year using standard practices, an average of 5 liters of diesel per acre, the cost of fuel for that crop is 27,500 today compared to 16 dollars in 2021.
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Increasing oil consumption may not be a problem if income growth is steady. However, wages failed to keep up with inflation until the second quarter of 2020. As a result, real wages fell to levels not seen since 1979-81 (
Although real incomes are higher than in previous periods of high oil prices, there is little room in most household budgets, especially
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