Saturday, January 17, 2009

Will Heating Costs Go Down?

When oil was going up and up and up and automobile gas was going up and up and up, well, naturally, heating costs went up and up and up. Understandable, I guess. I don't exactly understand how oil impacts electricity and coal and natural gas but I suppose, they are somehow intertwined.

Okay, so now the price of oil is back down. Vehicle gas has plunged from over $4 a gallon to about $1.78 the last time I filled up. But my gas bill at home was $415 last month and that was before our current spell of frigid temperatures. I can only imagine what it will be next month.

So, my question is - is the cost of heating going to go down and if not, why not? And even if it eventually does, why is it taking so long when gas prices for our cars responded to the drop in oil prices right away?

If they are keeping their prices up artificially, wouldn't it be considered price gouging?