For Marylanders, more warm weather means more cold cash in their pockets.
While drops in the cost of crude oil have benefited homeowners, a decrease in the use of electricity at home also has. According to information provided by Baltimore Gas & Electric, non-natural gas customers used an average 1,659 kilowatt-hours this December, a notable decrease from the 2,275 kilowatt-hours consumed a year ago. For consumers, this means an average drop of $24 on their bill, down to around $136.
Linda Foy, a spokesperson from BGE, said climate might have a hand in this.
“You could draw the conclusion that the warmer weather has something to do with the decrease in usage,” Foy said. “For the customers that do heat with a heat pump [or space heater], they wouldn?t have to use it as much.”
Costs of heating oil also have taken a plunge as well due to the average drop in the cost of crude oil. At the opening of business Monday, crude oil prices were down around $8 dollars from last year, going for $53 per barrel. And, since crude oil also is refined into gasoline, the savings is carried on to motorists.
“Half the cost of a gallon of gas comes from crude oil, and any time you see the price of crude oil go down you will see it at the pump,” said Jason Toews, founder of BaltimoreGasPrices.com. “I would expect it to be short-lived, because [crude oil prices] can?t go much lower.”
At the pump, AAA reported regular unleaded gasoline selling for an average of $2.24 per gallon. This mark, while 1 cent above the national average, is well below the $2.28 per gallon average last month and $2.35 a year ago.
Toews attributes the drop to smarter consumers, some who has learned to cut back on gas use and buy more mileage-centered vehicles.
“People are actually trying to save money by using less gas and using other forms of transportation,” Toews said. “People are much more price sensitive.”
