Heating Oil Prices Soar 50% for Four Million U.S. Households This Winter

More than four million U.S. households that rely on heating oil can expect to spend 50% more on their winter bills, according to a recent projection from the National Energy Assistance Directors Association (NEADA). This marks the second time this year that NEADA has increased its estimate for heating oil costs, with prices expected to rise by $878 compared to last year. The average household is projected to pay around $2,627 in heating oil costs this winter, up from $1,749 last year.

The increase in heating oil costs is largely due to the ongoing conflict in the Middle East, which has disrupted global oil supplies and driven up prices. A barrel of Brent Crude oil was trading at around $72 prior to the conflict, but now costs over $100 as shipping through the Strait of Hormuz remains limited.

Families in the Mid-Atlantic region can expect to spend $779 more than last year on heating oil, while those in the Northeast will face even higher increases. Vermont and Maine are projected to see the sharpest increase, with prices rising by 77% from last winter. In these two states, the average household can expect to pay around $2,805 (up from $1,588) and $2,939 (up from $1,664), respectively.

Low-income families in the Northeast will be hit particularly hard, with an estimated additional $1.1 billion spent on heating this winter.