Yes, prices are marching upward. And for many people this winter could be nasty:
For the 2005-06 heating season, “residential per-household expenditures” will rise by 71 percent for natural gas in the Midwest, 31 percent for heating oil in the Northeast, and 40 percent for propane in the Midwest. For all of 2005, EIA projects Americans will spend $1.08 trillion on energy, up 24 percent from 2004. That amounts to 8.7 percent of gross domestic product, the largest percentage since 1985.
Speaking of fuel, one thing that struck me as being peculiar is how all the local gas stations seem to be coordinating their big price hikes. I understand how a sudden disruption in supply can lead to big price hike. What seems odd to me is how, as if on cue, they all raise the price to the same rate. Typically, you’ll see a price variation of several cents per gallon depending on what part of town you’re in. Yet last Friday, it seemed as if every station I saw had all set the price at $3.29/ gallon [over 10% more than it had been a couple days earlier].
Just seemed a weird how that played out.