Expect home heating oil prices to increase in price this winter, according to multiple government sources.
Home heating oil prices recorded for the week of October 25 reached a level not seen in the region in seven years. Home heating oil was priced at $3.36 per gallon during that week, which was an increase of $1.23 per gallon (57.7% higher) from the same time in 2020.
Cost Of Home Heating Oil Set To Soar This Winter
According to New York State Energy Research and Development Authority, experts project prices to be 33.1% higher for heating oil prices this winter. However, this is just one part of the picture.
Unfortunately, these pricing trends may coincide with a winter that is forecasted to be slightly colder than last year. According to the data, it is expected that these lower temperatures will cause consumers to use 8% more heating oil fuel this winter.
According to a November report produced by the U.S. Energy Information Administration, it is expected that New England residents will pay $1,734 on average this winter, with prices up 43% from last winter once the increased cost and increased need are both factored.
What is Causing Heating Oil Prices to Increase?
The price increase is caused by multiple factors, according to the executive director of the Empire State Energy Association. The increased cost of shipping and labor contributes to the rise in home fuel oil prices. Heating oil prices are also tied closely to the price of crude oil, which has climbed more than 60% as of November 2021.
Unfortunately, it’s not only heating oil consumers who will have to pay more to heat their homes this year. Energy experts project an increase in pricing for natural gas, propane, and electricity users as well.
For example, the New York State Energy Research and Development Authority predicts that Americans will be paying 14.4% more for natural gas than last winter. However, the most significant price increase will be for propane users, who are expected to pay 42.2% more than last winter.
Consumers affected the most by the increase in home heating oil prices primarily live in the Northeast, where about 18% of homes use heating oil.
One good bit of news is that the heating oil supply is not expected to be a problem in the Northeast this winter.
How to Save on Home Heating Oil This Winter
According to the New Hampshire Office of Strategic Initiatives, one way to save on home heating oil prices is to utilize a pre-buy contract for heating fuels or a fuel payment budget plan.
Some heating oil delivery services offer these programs to their customers. You may also want to contact an HVAC company in your area to learn how a more efficient system may reduce your energy needs.
As the temperature continues to drop, don’t let your tank get too low while you wait for the home heating oil prices market to return to normal. Residents who run out of oil during an unpredictable cold snap may have to contend with frozen pipes, which is an expensive and inconvenient problem that may result from running out of home heating oil.