Heating oil expenditure 'likely to remain high'

14 February 2008

Heating oil users are likely to have to endure high fuel costs until at least the end of March, according to a report by a US government department.

The latest weekly update published by the Energy Information Administration (EIA) explained that a combination of warmer weather and the high cost of the fuel had cut average consumption of heating oil this winter.

However, because crude oil prices remain high the EIA has increased its average winter heating oil expenditure prediction for residents of the north-east of the US from $1,827 (€1,250) to $2,001 - the highest on record.

"Heating oil customers have been and will continue to pay considerably more to heat their homes this winter compared to last winter," the report added.

Data contained in the EIA's update did little to alleviate the pressure on household finances, as the news that demand for both heating oil and petrol increased last week gave support to prices.

As a result, US crude for March delivery gained 49 cents to close at $93.27 a barrel on Wednesday and heating oil futures rose 2.45 cents to settle at $2.6156 a gallon.

Click here for a home heating oil price quote.