Winter is expected to be more expensive for those heating with oil
After years of skyrocketing winter heating costs, millions of Americans are expected to finally get some relief this coming season – if they heat their homes with natural gas, that is. The winter is expected to be more expensive for those heating with oil, known as heating oil.
Natural gas heating, used by just under half of American homes, is expected to cost an average of $726 this winter, down 7.8% from last year, according to an estimate released by the National Energy Assistance Directors Association.
But those who use home heating oil are likely to be horrified again. The cost is expected to jump to an average of $2,275, an 8.7% increase from last year, as oil prices rise partly due to recent decisions by Russia and Saudi Arabia to cut oil production. Only 4.1% of households use domestic heating oil, mainly in the North East.
“This is the first year many families will get a break,” said Mark Wolfe, the association’s executive director, referring to the expected decline in natural gas heating costs. But if you’re up in New England, this is scary. It will be another expensive year for families using heating oil.”
Heating with propane is expected to cost an average of $1,538, an increase of 4.2% from last season. Electricity, the second most common source of heat, is estimated to cost an average of USD 1 374, an increase of 1.2%.
The federal Energy Information Administration is expected to release its winter warming outlook next month.
Home heating is still expensive
Americans are gearing up for the winter heating season just as rising gasoline prices have strained their economy.
Even with the expected decline in natural gas heating costs, families are still paying out much more than they were in the winter of 2020-2021, when it only cost them $573 on average for the season, according to the association.
Those using heating oil have seen their costs explode since that winter, when they paid only $1,212 on average. Heating with propane and electricity cost $1,162 and $1,180 respectively on average in the winter of 2020-2021.
“For the foreseeable future, home energy will be expensive,” Wolfe said.. “We don’t see the prices we saw three or four years ago.”
Less state aid expected
In addition, Congress is not expected to continue providing the significant funding increases for the Low Income Home Energy Assistance Program that it has enjoyed in recent years, Wolfe said.
Both the House and Senate, which have not yet agreed to fund the federal government for the coming fiscal year, have proposed allocating about $4 billion for the safety net program. But lawmakers had provided $6 billion this year and about $8.4 billion in the previous fiscal year to help Americans grapple with rising energy prices.
The reduction could mean that 1 million fewer families will be served, said Wolfe, who is concerned that the funding could be cut further. And it would come at a time when applications for LIHEAP assistance have increased for both heating and cooling assistance.
“Part of the problem is that we are under pressure to run year-round programs because of the summer, and there is not enough money ,” Wolfe said.
If the federal LIHEAP budget is cut, the Alliance for Community Empowerment – which distributes assistance to Connecticut residents – could be forced to turn away people in need, said Monette Ferguson, the nonprofit’s executive director.
“The budget cuts will not only force our customers to make hard sacrifices, but could also leave children without heat,” says Ferguson. “Costs have doubled, and customers should not have to choose whether to heat or feed their families.”
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