Falling Fuel Prices Could Mean Lower Home Heating Costs

NEW YORK (CBSNewYork) -- Fuel Prices are falling and home owners may be in a position to cash in on the lowest oil heating prices all year.

The Shermans of Bellmore on Long Island were recently told by their oil company that home heating oil prices were less than $4 a gallon, CBS 2's Jennifer McLogan reported.

The $3.99 price is a 7-percent drop from a year ago.

"If you're going to get oil, get it now while it's cheaper," Kevin Sherman said.

The Shermans said they had 125 gallons delivered to help warm the house as Thanksgiving approaches.

Kevin Rooney of the Oil Heat Institute of Long Island, told CBS 2's McLogan that the time is right to take advantage of lower prices.

"Crude oil is down almost $10 a barrel, heating oil prices are down about 30 cents a gallon at this point," he said.

Ample supplies and a lower fear factor over fluctuating supplies may be driving the shift in prices, explained AAA spokesman Robert Sinclair.

"We haven't had any hurricanes, thank goodness, no interruptions in supply, no interruptions in refining and distribution," Sinclair said.

Motorists are getting a break as well. Gas prices are the lowest they have been in almost a year. Following Superstorm Sandy a gas shortage drove prices up to $4.12 a gallon. Current prices are in the mid $3.50s.

Some consumers said they are looking to take full advantage of the drop in prices.

"I would be afraid the prices would jump, so I want to fill it up now," Christina Finnegan said.

Other homeowners said that while they would like to load up on fuel, the approaching holidays have made budgets too tight to take full advantage of the low prices.

"We fill and we buy for what we need," Ron Rakin said. "Stocking up isn't really an option when there are so many important things you need money for."

The Department of Energy said that a cold winter and rising demand for oil could mean a price hike after Christmas.

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