Heating Oil Costs Soar by Nearly 50% This Winter

The National Energy Assistance Directors Association (NEADA) is warning that more than four million U.S. households that rely on heating oil can expect to pay significantly more this winter.

According to NEADA, the average cost for heating oil will increase by $878, from last year's estimated $1,749 to a projected $2,627.

This is the second time this year that NEADA has increased its estimate for heating oil costs. In early September, the organization predicted a 31% rise in costs, but now projects a 50% increase.

The rising energy costs will vary by region, with families in the Mid-Atlantic expected to spend $779 more than last year, and those in the Northeast facing increases of over $1,000. Vermont and Maine are projected to see the sharpest increase in the Northeast, with heating oil costs rising by 77%.

The increased cost is due to conflict in the Middle East, which has disrupted global oil supplies. A barrel of Brent Crude oil was trading at around $72 before the U.S.-Iran conflict, but now costs over $100 due to limited shipping through the Strait of Hormuz.