Heating Oil Prices Soar as War with Iran Drives Global Oil Prices Higher

A new report by the National Energy Assistance Directors Association found that heating costs will jump by 8.7 percent this winter as compared to last year, more than double the rate of inflation. The average American household is expected to spend $1,030 on heating this winter, with prices increasing for all fuel types but especially dramatic for heating oil users.

The report projects that heating oil costs will rise by 31.3 percent this winter, meaning users will pay an average of $2,297. However, since the report was written last week, global oil prices have spiked due to Iran-backed Houthi rebels capturing two islands in the Red Sea.

The National Energy Assistance Directors Association has called on Congress to increase LIHEAP funding from $4.1 billion to $7 billion to help counter rising costs. However, even if this happens, LIHEAP will likely still fall short of meeting demand for energy assistance.