You read it right... the cost of heating oil is predicted to drop this winter season 2020-21. I had to do a double take when I read that in an article that addressed what the future costs will be for heating our homes this winter! But note this... those who heat with natural gas, electricity and propane, are predicted to see a rise in their heating costs. Only those who use oil heat will see a drop!
The reason given for the expected higher heating costs this winter is because more people are working from home and children are attending virtual classes at home due to COVID-19. Also, this winter is suppose to have colder temperatures than last year.
So far, this winter season 2020-2021, the heating oil prices are already down 28 percent when compared with the 2019-2020 heating season.
An EIA states the following: "The EIA is projecting households will spend about 6 percent more than last year if they use natural gas, 7 percent more if they use electricity and between 12-18 percent more than last year if using propane for heat this winter.
Those using heating oil could see a decrease of about 10 percent this year over their heating bills last year, according to the agency."
Another article mentions that the cost of heating oil could possibly 54 cents drop per gallon in price! Now I'm sure you are wondering... what's responsible for the drop in oil heating costs? There wasn't an explanation given for that. It will be interesting to say the least to see if this pans out. This article also had some helpful tips for keeping heating costs down.
What this means for you is that you could save on your oil heat costs, when others will see a rise in costs. Let's hope this happens!