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Consumers Advised To Hold Off On Heating Oil Contracts

There Is Chance Prices May Drop, Experts Say

POSTED: 6:57 am EDT May 27, 2008
UPDATED: 7:21 am EDT May 27, 2008

Everyone knows about the high cost of filling up a gas tank these days, but this time of year it's likely consumers are not thinking about filling up their home oil tank.

If homeowners are thinking of locking in a price for the winter now, to try to get ahead of expected price increases next winter, industry experts are saying don't do it.

Right now, heating oil prices are up to $4.50 a gallon. That's $1 higher than this past winter, which was a very expensive one.

If consumers lock in a rate today, it could cost them $800 more to heat their homes this upcoming winter.

Local oil delivery companies say they're stunned by the price hikes. One told the Boston Herald that prices soared 90 cents in the first three weeks of May. As the summer sizzles on, dealers will have to buy stock for the fall and winter and will probably pass hikes on to consumers.

There is still a chance, however, that prices will drop, which is why consumers are being urged to avoid signing up for those long-term contracts.

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