Obama says energy prices will rise…again?
Its no surprise to people who watch home energy closely that energy prices are likely to rise soon. As quoted from Reuters:
“(Obama) believes that the price of oil and the price of energy is not likely to stay at the level it is now…”
Of course, this is interesting on several levels. First of all, I’m not sure about you, but I don’t recall an actual reduction of the rate of my home energy bill. It remains the same, and has remained the same for a while. If anything prices increased slightly. In fact I can’t recall a reduction in rate at all.
So, clearly, this observation does not relate to most of our home energy. However it does apply to heating oil, since the price of oil does affect the price of heating oil.
This means residents who rely on heating oil to provide warmth can expect to see an increase in their heating prices. This includes already expensive locations such as Boston and the northeast can expect an increase to their already bloated home energy prices that is directly tied to oil prices.
However, the rest of us may be affected as well. If you think about it, all energy companies use other energy sources, such as oil, that are tied directly to the market prices and market volatility. So if you think the electric company is insulated from an event like this, think again. It will become more expensive to run their fleet of maintenance trucks since oil will increase in cost. This price will certainly be passed off to consumers as another charge under the “service” or “delivery” charge per unit of energy.