News - The Gas Game

However, over the course of the past month, gas and home heating fuel prices have seen a drastic reduction in cost.

Gas has dropped in New York State from an average of $4.30 per gallon in July to the current average of $2.74 per gallon, according to AAA. Home heating fuel has also fallen from an average cost in the Capital District of $4.62 per gallon in July to the current price of $3.23 per gallon, according to the New York State Energy Research and Development Authority (NYSERDA).

Tom Lynch, spokesman for NYSERDA, said the reason behind the significant drop in crude oil prices has to do with a tremendous reduction in demand and a surplus in oil supplies.

“There is a recognition out there that the economy is slowing down here in New York, nationally and internationally and because of this we have seen historic drops,” he said.

According to Lynch, oil companies like OPEC are now trying to set limits on access supply to a point where they have also been forced to set limits in terms of production.

“These are volatile commodities,” he said. “Some oil prices are down in the low $60s per barrel and that has had an effect on heating fuel and gas prices.”

While motorists pay prices depending on what the cost is at the pump, some homeowners who use fuel to heat their homes could still be potentially paying more than $4 per gallon.

Angelo Rosse of Bear Fuels in Saratoga Springs said many oil companies offer pricing options that include a fixed price, which means the consumer is locked in at one price regardless of market conditions. However, Rosse said his company did not offer consumers such a plan because he had forecasted the massive drop in fuel prices months earlier.

“We called all of our customers who were scheduled for a delivery when it was over $4 per gallon and told them, ‘look we feel it is going to continue to go up, but it will eventually crash,’ so we suggested they hold off on buying large amounts,” he said. “Now they are calling us back because it is $2 cheaper per gallon and they have benefited from our wise choice.”

While customers of Bear Fuels were able to save money due to the company’s recognition that fuel prices would eventually drop, Rosse said there are customers out there who are currently locked in at prices as high as $4.79 per gallon. He said it is very hard for people to get out of such plans, because of the $400 to $500 cancellation fees associated with them. He added that some companies don’t even offer opt-outs, so if you purchased 800 gallons at $4.79 per gallon you are stuck paying for it.

“The customers have suffered and the companies have suffered because the market has tumbled. It is a difficult situation for both parties,” he said.

Rosse said that he does not expect prices to go back up anytime soon and could even foresee another drop of around 30 to 40 cents per gallon over the upcoming weeks and months.

Lynch, whose organization promotes energy efficiency, said that homeowners can help to save money on home heating fuel by ensuring energy efficiency within the home. He said this can be done by cleaning and tuning up your home heating system once a year and tightening up your home by putting in storm windows and insulating attics and walls.

“These are the kinds of things that are going to provide some quick savings for consumers,”

he said.