As oil prices soar, should you refill your home heating tank?
Home heating oil now costs up to $5 a gallon in Connecticut, but fuel companies believe the price spike won't last long.
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The war in Iran is leaving home heating oil customers with an expensive decision – refill your tank now or wait?
Oil companies suggest holding off for several weeks to see if markets stabilize.
SOARING PRICES
In Connecticut, some suppliers are now charging $5 a gallon for home heating fuel.
“It was just jaw-dropping,” said Chris Herb, president of the Connecticut Energy Marketers Association.
Crude oil prices spiked to $100 a barrel on Thursday after Iran’s new supreme leader vowed to continue blocking ships from the Strait of Hormuz. About 20% of the world’s oil supply travels through the Strait.
Iran struck two tankers and a cargo ship in the area with missiles overnight. The Trump administration said that the U.S. military is not yet able to safely escort ships.
“It’ll happen relatively soon but it can’t happen now,” Energy Secretary Wright told CNBC. “We’re simply not ready. All of our military assets right now are focused on destroying Iran’s offensive capabilities and the manufacturing industry that supplies their offensive capabilities.”
BUY NOW – OR WAIT?
What should you do if you’re running low on home heating oil?
“My gut would say wait it out if you can,” said Katie Childs, owner of Tuxis-Ohr’s Fuel in Meriden. “I truly think this will be short-term.”
Experts stressed that the U.S. still has plenty of supply – especially after the government released 172 million barrels from the Strategic Petroleum Reserve.
Herb blamed speculators for driving up prices. “The simple answer is fear,” he said. “A bunch of 25-year-old Wharton [School of Business] graduates on Wall Street are afraid that this could ultimately impact supply here in Connecticut.”
HEATING ASSISTANCE AT RISK?
Despite soaring oil prices, Gov. Ned Lamont said that Connecticut’s Low-Income Energy Assistance Program still has enough money.
“We worried that the federal administration was going to pull the plug on the LIHEAP. They have not done that,” he said. “We’ve still got funding in the LIHEAP. And with days like this, we may not need much more.”
Childs said you can buy an extra two weeks of heating oil just by turning your thermostat down.
“I would not run yourself out of oil. That causes more problems to your system than it’s worth. So if you’re on an automatic delivery, maybe call your oil company, find out if there’s anything that can be done,” Childs said. “If you are only looking for short-term, maybe put in 100 gallons.”
