Oil-buying groups save big bucks on heating oil

As homeowners worry over the cost of rising energy bills, several dozen families in Weston, Mass. will save hundreds of dollars on heating oil this winter.

Spearheaded by Weston resident Jan Fine, WBZ reports that he helped families come together to organize a buying group to secure a bulk discount.

The families buy such a large quantity of oil that companies bid on their contract. The wholesale nature of their purchase allows them to save hundreds off of the total price that individual households would pay.

"Last year we averaged about 50 cents per gallon savings over retail cost," Fine tells WBZ's Joe Shortsleeve. "So if you use a thousand gallons that saves you 500 bucks. Two thousand gallons -it saves you a thousand bucks. It's quite a bit of money."

Fine stresses that these groups are fairly easy to organize. To get started, he encouraged people to commit to their interest in the effort by entering their information in an online database, then he got in touch with oil companies.

“We are not an organization. We are simply a group of people who got together on the same database,” he says.

If you’re inspired by Fine’s grassroots effort to negotiate a better deal on heating oil, you can tap into the power of Consumer United's group discount here.

Mass. residents heating oil bill forecast to hit $3,000

This year, the cost of heating oil is on the rise. The average 2009 oil bill for a Massachusetts household could top $3000 a month. This is a 30% increase from 2007. This year, residents could be paying $1 billion more in heating than in 2007, a very scary thought for a person working from paycheck to paycheck.

The price of oil, and this winter's temperature will hopefully contribute to a drop in price as the temperature drops.

"Maybe the people who are very, very wealthy won't bat an eyelash," says Joseph P. Kennedy II, chairmain of the Boston-based non-profit Citizens Energy Corp to the Boston Globe.

"But for the regular people who are working from paycheck to paycheck and week to week, and don't have anything in the bank account, this is devastating." Kennedy's company provides discounted oil to senior citizens and low-income residents.

Mass. heating oil jumps $1,300 higher this winter

According to Mass AREA (Mass. Affordable Reliable Electricity Alliance), those who use oil to heat their homes can expect to pay $1,300 more than last year to heat their home.

Here are a few low-cost tips from the group to save:

*Turn down the temperature of your water heater to the warm setting (120°F).

*Clean or replace furnace and heat-pump filters regularly

*Install low-flow shower heads and faucet aerators

*Change the five most-used lights in your home to compact fluorescent lamps and you’ll save more than $60 every year in energy costs

*Unplug that second, old refrigerator! Today’s models use at least 40% less energy than even the conventional models sold in 2001.

*Lower your thermostat – for every degree you save about 2 percent off your heating bill.

*Weather strip doors and windows – properly air sealing cracks and openings in your home can significantly reduce heating and cooling costs, improve building durability, and create a healthier indoor environment

*Use Power Strips – plug your electronics into power strips – especially televisions and computers. When you’re done using them, turn the power strip off to prevent the stand-by mode that draws unnecessary electricity

*Use the air dry setting on your dishwasher

*Keep shades and curtains open during the day on the south side of your home to allow solar heating. Close them at night to retain heat.

Consumer United Newsletter :: July 7, 2008

Check out the archived version of Consumer United's bi-weekly newsletter here.

Here's the intro:

Based on our numbers, we can negotiate lower prices on auto insurance, phone, Internet, cable, personal banking and utilities.We do the initial research and legwork for you. Tap into the power of the masses and get more for your money while making an informed decision in less time.

Highlights:
*Big Chill Expected
*Top 10 Ways To Save
*Auto Insurance 101

Click here to read the Consumer United Newsletter :: July 7, 2008.

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