The cost of home heating oil has plummeted since this summer's record highs. but that is not good news for those who pre-bought fuel when it was much more expensive.

Schools Locked Into Fuel Prices Feel Trapped

The Dresden school district, which has schools in Hanover, N.H., and Norwich, Vt., waited all summer to buy heating oil for its schools. They paid about $3.38 a gallon, which was below levels hit during the summer.

The school district bought its fuel in September. Since then, oil prices have fallen consistently. Now that same gallon of oil goes for about $2.64.

The district finalizes its budget in January, at a time when oil was cheaper. The cost they are paying has led to more than $30,000 in cost overruns.

We are spending more than we anticipated for those costs," said Dresden superintendent Wayne Gersen.

Fuel suppliers say that they are somewhat locked in as well. New Hampshire and Vermont law requires fuel dealers to purchase oil before selling it to customers.

"We're very much in the same boat," said Rob Stengel of Simple Energy in West Lebanon, N.H. "While prices coming down are good for everybody, it is a tough situation for anyone that pre-bought earlier this year."