Prices drop for heating fuel

Posted: Monday, October 27, 2008

FAIRBANKS - Prices for heating fuel have dropped in Fairbanks.

The price of heating fuel has dropped more than $1.50 in the last three months. It is now under $3 a gallon in Fairbanks.

The price peaked at $4.55 in mid-July at Alaska Petroleum, one of a handful of fuel retailers in Fairbanks. It has been dropping steadily since.

That means people who bought heating fuel this summer thinking it was going to be more expensive this winter are paying for it now. And fuel retailers say the price is expected to keep going down.

The price slide corresponds with the drop in crude oil prices.

"My price will be lower on Monday," said Lisa Sundborg, office manager at Alaska Petroleum, where auto-delivery customers were paying $2.90 per gallon on Friday.

The price of crude oil has dropped by almost 50 percent since mid-July when it was at about $125 per barrel. On Friday, it was at about $65 per barrel.

Bob Hawkins, president at Alaska Aerofuel, said the drop in price comes at a good time with winter settling in.

"A good chunk of people took their stimulus check and put it down on account or topped off their tanks," he said. "That, in conjunction with the price of oil going down, make it so people can afford to heat their homes this winter."

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