I pay 4.36, regular, I hope its not as some say, near 5 by 4th of
july, this is the making for a long big recession especialy to hurt
the lower class, I already see very bad effects.
Many of us have already cut back in other areas in anticipation of the next
season home heating. At today's prices, I'll be paying an extra $1700 over
the last year. That has to come from cutting back in other areas, like
eating out, vacation, wear those shoes a little longer. I'd cut back on
haircuts, but I eliminated them about three years ago.
Few of us realize what lies ahead. It's not just higher gasoline
prices, but rising home heating and cooling costs and higher food
prices as well. Just about everything we purchase will be more
expensive due to increased energy and transportation costs.
In just the past two years, the price of gasoline, home heating oil
and diesel has doubled and by fall that will likely be true of natural
gas. Thermal coal prices in some parts of the country have just about
tripled in the past year which, in combination with natural gas, will
send electricity prices upward. There will be no escaping it, no
matter which way you turn.
Here's a discussion of home heating oil in the great state of Maine:
I expect you'll hit the $5.00 a gallon mark sometime this fall and I'm
even hearing talk of $6.00, which in light of the recent run-up in
crude is probably not out of the question.
I'm currently paying $1.299 per litre/$4.92 a gallon, but that price
has been steadily creeping upward week after week; last year, I was
locked in at $0.889 a litre or $3.36 a gallon.
In '07-'08, I used a total of 702 litres/185 gallons of fuel oil for
space heating and domestic hot water purposes and now that my DHW is
pre-heated by a small electric tank, my consumption this coming year
should fall below 400 litres/105 gallons. At this point, heating oil
prices could double or triple again and the financial impact would be
On Sun, 08 Jun 2008 20:27:18 -0300, Paul M. Eldridge
Just to flesh this out a bit more...
Note the following quote is a little out of date:
``At $4 per gallon gas, $125 per barrel oil and $10 per million Btu
natural gas, a lot of activity becomes uneconomical,'' says Mark
Zandi, chief economist at Moody's Economy.com..."
Crude oil is now trading between $135.00 and $140.00 a barrel and the
Henry Hub and NYC gate spot prices for natural gas are $12.71 and
$14.09 per MM BTU respectively.
Yes, but contracts continually expire and new ones must be negotiated at
Fuel cost surcharges are standard in virtually all markets so if one
watches carefully the effects will undoubtedly start to become apparent
On Mon, 9 Jun 2008 16:26:37 +0000 (UTC), Jonathan Grobe
As dpb pointed out, supply contracts allow utilities to purchase coal
at a fixed price -- or at a periodically reset price if they contain
escalator clauses -- but when they expire the new negotiated price
will reflect current market conditions; hedges or multiple contracts
that expire at different times will help soften the blow, but they
can't put off the inevitable. Higher transportation costs are another
A year ago, my utility was purchasing thermal coal at $60 per metric
tonne; today, that has risen to $130 per tonne and the general
expectation is that it will be heading higher. They've applied for a
12.1 per cent increase and are negotiating with the PUC to establish a
separate fuel rider, which tends to suggests they expect greater
long-term price volatility.
I can get new items at flea markets, but I'm not about to claim that
is the "going rate".
This from the link I posted above for Kansas City.
One Week Ago 3.857
One Month Ago 3.586
One Year Ago 2.914
You have to understand that I am not thrilled about what is happening
with gas prices any more than you are, and if there's any bright spot
to be had in this situation I'll look for it. The bright spot here
seems to be that you're in the same leaky boat with the rest of
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