How much have heating oil prices gone up?
Heating oil prices in the US rose 19% to $5.09 per gallon in the week ending March 9, according to the US Energy Information Administration. This is the highest level in years. (Bloomberg)
Other home heating fuels:
- Kerosene: Up 2.7% to $4.96/gallon
- Propane: Roughly flat at $3.36/gallon (for now)
Why does the Iran war affect heating oil?
Heating oil is essentially the same product as diesel fuel. When the Strait of Hormuz was effectively shut down, roughly one-fifth of the world’s oil and gas supply was removed from the market. That drives up the price of all petroleum products, including the fuel that heats millions of homes. (Center for American Progress)
Who is hit hardest?
Northeast US households are disproportionately affected. Maine is the most heating oil-dependent state in the country. In Massachusetts alone, a coalition of 23 community action agencies warned that tens of thousands of households are at risk of not being able to heat their homes for the remainder of winter — with close to 80% of households that heat with oil being out or running low. (WBUR)
What can I do?
- Contact your fuel provider now to lock in current prices if possible
- Apply for LIHEAP (Low Income Home Energy Assistance Program) if you qualify
- Weatherize your home: Seal drafts, add insulation, use programmable thermostats
- Explore payment plans: Many fuel companies offer budget billing
- Contact your state energy office for emergency assistance programs
Will prices come back down?
Not quickly. The IEA’s emergency oil reserve release may provide some relief in coming weeks, but heating oil prices are unlikely to return to pre-war levels until the Strait of Hormuz reopens to normal shipping traffic. (Northeastern University)