Temps plunge — and heating costs in New York City soar

New York /
Feb.February 11, 2014 12:59 PM

As winter temperatures continue their tumble in February, the cost of staying warm is hitting near-record highs in New York State.

The price of residential heating oil in the Empire State hit $4.48 per gallon on Feb. 3 — the highest price for the utility since 1990, according to U.S. Energy Information Administration data cited by Bloomberg News. This year alone, the cost to New Yorkers has climbed 25.4 cents. And they aren’t alone in their pricey payments: nationwide, the fuel cost averaged $4.24 per gallon, also nabbing a record.

“These prices are absolutely nuts because there’s just no supply,” Bob Castoro, who owns the New York-based Dyno Fuel Oil, told Bloomberg. “I don’t know how my customers are going to pay their bills. It’s a choice between eating or putting heating oil in the tank to stay warm.”

Dwindling heating oil and diesel stockpiles are to blame for the high costs, with the number of barrels plunging by 2.05 million as of the week ended Jan. 31 — the lowest levels since 1990, according to Energy Information Administration data. Natural gas pipelines have been restricted during cold weather, and refinery maintenance has cut fuel output, impacting the 5.38 million households that rely on oil for primary space heating in the northeastern U.S.

Heating oil distributors are struggling to meet customer demand in the crunch and are passing the soaring cost of oil on to their customers. Castoro, who is charging as much as $4.56 per gallon in eastern Suffolk County, told Bloomberg these are the highest prices he’s ever charged. [Bloomberg News]Julie Strickland


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Nick Candy and One Hyde Park (Getty, Wikimedia/Rob Deutscher/Flickr)
Sweet Jesus: Nick Candy asks $241M for London penthouse
Sweet Jesus: Nick Candy asks $241M for London penthouse
The law included a five-year rent freeze for all units built as recently as 2013, and a rent hike cap based on the property’s age plus 1.3 percent inflation. (iStock)
Berlin’s rent law was historic. Now it’s history
Berlin’s rent law was historic. Now it’s history
(Tropicana Las  Vegas via Facebook, Bally's Corp)
Bally’s buys Las Vegas’ Tropicana casino for $150M
Bally’s buys Las Vegas’ Tropicana casino for $150M
Macerich president Edward Coppola and a rendering of the redevelopment in Pheonix (Macerich/City of Pheonix)
Macerich unloads Phoenix mall for $100M; redevelopment awaits
Macerich unloads Phoenix mall for $100M; redevelopment awaits
Hammerson CEO Rita-Rose Gagne and Brookfield's Bruce Flatt. (Hammerson, Brookfield, Getty)
Brookfield’s US malls are struggling. Now it’s buying some in Europe
Brookfield’s US malls are struggling. Now it’s buying some in Europe
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...