Will 2008/2009's Winter Bankrupt Families in the Northeast?
Skyrocketing Heating Fuel Prices Predicted to Go as High as $6 a Gallon
A recent news story and discussions with a few coworkers and friends has me really worrying about this upcoming winter. We haven't even reached summer and already thousands of Vermonters are in a state of panic over how they will survive the cold season.
Ultramar, my propane company, recently told me over the phone that they are not allowing locked in rates to me because I used too little fuel last year. Apparently, my efforts to conserve have come back to bite me. I kept the thermostat set to 62 degrees and avoided using my stove as much as possible. Last year, I paid $4.50 a gallon for propane and after two fill-ups costing me $800 each, I knew something would have to change.
This year, I'm dumping Ultramar if possible. I'm tired of hearing about this Canadian company earning tons of cash while their customers are scraping to get by. Valero Energy Corporation, who in 2007 boasted revenues of $95 billion, owns Ultramar. While I realize this is typical of any oil company, their constant greed and oversight of their customers' struggles has worn thin.
I've looked into Suburban who sent out a mailer stating last week (May 26, 2008) they are not offering lock-in rates, but current customers can pre-buy fuel if they pay by mid-June. How many people can cough up this much this quickly?
One woman got a letter from Liberty telling her that she could lock-in at $4.50 now if she pre-paid for her propane by July 1st. Again, how is she to afford that large payment within a month's time?
It seems other companies-Liberty, Newton's, Steven's, and Amerigas-are all saying the same thing. People should expect to pay upwards of $6 a gallon this winter. A fact I find completely terrifying.
My house was set up with a propane furnace, propane water heater, propane stove/oven, and propane clothes dryer. I'm not trying to come up with the money to switch away from this. I can't see the affordability of running gas for everything when it is so expensive. We've replaced the water heater, dryer and stove since we've moved in, but at the time, propane was $2.50 a gallon, so it still made sense to use it at that time. Now, I regret having made that decision.
This winter showed record propane and heating oil rates. People were paying close to $5 a gallon for their propane and over $4 a gallon for heating oil. I fear that by next spring, the number of bankruptcies will have skyrocketed. In cold northern climates, we cannot turn off our furnaces without freezing to death, so it's not like people can go without.
I also predict that the number of elderly who freeze to death will increase. It's already hard for them to afford their medical bills and groceries. Imagine having to fit in $1,000 propane fill ups at the same time? It's simply not going to happen!
It's time for the government to wake up and start helping out the people in the United States. I'm ready to pack up and move south.
Published by T. Goss
I've been a SAHM following a four year stint as a travel agent. Six years ago, I stumbled into the world of book reviewing and have been going strong ever since. More recently, I've turned to freelance wri... View profile
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