According to the U.S. Energy Information Administration's Winter Fuels Outlook, heating oil prices are expected to average $5.26 per gallon this winter, leading to an estimated average household expenditure of $2,115 from November through March, a 21% increase from the previous year.
This rise is attributed to a constrained global market for distillate fuels, influenced by refinery disruptions in Russia and the Middle East, as well as reduced exports from China. While heating oil users face steep price hikes, households relying on natural gas are expected to spend an average of $640, down 9%, and those using propane will see costs decrease by 3% to $1,246.
The Northeast, where about 82% of the nation's heating oil users reside, is expected to experience a warmer winter, which may lead to a 9% decline in heating oil consumption despite rising costs. Some states, like Massachusetts and Maine, are reporting even higher local prices, with increases of 73% and 79%, respectively.
Consumers are encouraged to shop around for better prices and may qualify for assistance through the Low Income Home Energy Assistance Program (LIHEAP), especially those on fixed incomes. A group of Democratic senators has also urged for increased funding for LIHEAP to help those struggling with heating costs