Fuel Costs and Your Raise
With all the talk lately about surging fuel prices.... the next logical question whether the predicted 3.5% salary increase for next year will cover the increase in fuel prices. Let's take a look, according to this recent article:
"Heating a typical home with natural gas in colder parts of the country is now expected to cost $1,568 this winter, up 64 percent from $957 last year, according to estimates from the National Energy Assistance Directors' Association, which coordinates energy relief for lower-income families.
The news is not much better for homes using heating oil. This winter's heating bill could rise by nearly a third, to $1,666, from $1,263 last winter, the group said. Its forecasts are based on estimates made after Hurricane Katrina but before Rita."
The $50,000/year employee who gets a 3.5% raise can expect an extra $1,750 (or about $34/week) in his/her pocket before taxes. Less taxes (depending upon the location) he/she might end up with $20. The average employee is probably already spending an additional $20/week on gas for the car. So, it looks like the additional cost of heating homes this winter may come out of the holiday gift budget.