Heating Oil Prices Soar by Nearly $1,000 for Millions of US Households
More than four million US households that rely on heating oil are facing a significant increase in their winter bills. According to the National Energy Assistance Directors Association, these households can expect to pay about $900 more this winter compared to last year.
The estimate is based on projections from NEADA, which has increased its previous estimate of 31% rise in heating oil costs. Last winter, households spent an average of $1,749 to heat their homes with heating oil, but this winter, the estimate is $2,627, a 50% increase.
The impact will vary by region, with families in the Mid-Atlantic and Northeast expected to face higher increases. Vermont and Maine are projected to see the sharpest rise in the Northeast, with heating oil costs in both states rising by 77%. A barrel of Brent Crude oil is now trading at over $100 due to conflict in the Middle East disrupting global oil supplies.
Even with an expected warmer winter from NOAA, prices will not drop because oil supplies remain limited. Low-income families in the Northeast could spend an additional $1.1 billion on heating this winter, according to NEADA.