The Price of Oil Comes Home
We are on the so-called budget plan for heating oil up in here in the Northeast. That means we spread the payments out over 12 months and have a capped price per gallon, but if the price of oil is lower, we pay that instead.
Part of the reason that this arrangment is attractive to us is that we are contractors, and our monthly cash flow is dicey enough as it is, fluctuating with our project work. Our heating oil tank is 500 gallons. With the cost of heating oil just recently reported at $5.30, a "fill up" would be a $2650.00 hit that could kill us in a month when our receivables are low.
So we do the budget plan and spread it out over 12 months.
Last year: $175.00 a month
This year: $480.00 a month
For those calculating, that is an increase (for the same amount of oil) of 174.28% ... One Hundred and Seventy Four percent inflation in the cost of heating oil. In total, I will be paying two and a half times what I paid last year.
Put that in your CPI pipe and smoke it.
Oh, I forgot... including the cost of energy in the CPI is way way too volatile.
Volatile in the sense that, gawd forbid, the peasants might rebel.