Home heating oil prices near historic highs in CT, experts urge caution before locking in rates
HARTFORD, Conn. (WFSB) — Connecticut homeowners who heat with oil could be facing some of the worst home heating oil prices in years, and experts are urging residents to contact their local oil dealer now rather than waiting to see if prices drop.
Prices are currently hovering around $4.80 per gallon in Connecticut, according to DollarWiseOil.com.
In past years, prices have dropped more than $1.50 this time of year — but market volatility tied to the war in Iran has made that outcome uncertain.
Prices could still drop by a dollar or more if there is a resolution overseas, experts said.
Expert advice: Don’t guess the market
Chris Herb, CEO of the Connecticut Energy Marketers Association, said trying to time the market is a mistake when your family’s warmth is on the line.
“You should buy consistently,” Herb said. “Don’t try to guess the market. That’s trying to figure out whether you should buy Microsoft stock or not. Don’t do that with your family in trying to keep them warm this coming winter. So I’d say call your heating oil dealer, have that conversation. What price control mechanisms are available to you. This might be a really good time to get on a budget program.”
Herb also said the volatile market makes it difficult to predict what will happen with prices.
“The markets have been immensely volatile on news coming out of the Middle East, coming out of the White House,” Herb said. “So it is really hard to make that decision. What we recommend is that you work with your home heating oil dealer. Call that local business that you’ve been working with over the years and find out what is in your best interest. Right now, there are some things you might be able to do to drive down cost.”
What is a budget program?
A budget program splits a homeowner’s average annual oil consumption into smaller monthly payments, avoiding a large bill at each fill-up.
Herb said this may be a particularly good option given the current market uncertainty.