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U.S. heating oil prices jump 59% from last winter, EIA says
CNBC reported U.S. heating oil averaged about $5.91 a gallon as of Nov. 9, up 59% from a year earlier, with Maine nonprofits saying aid is not stretching as far.
- New headline Was: “Heating oil prices are up 59% from last winter. The spike is 'crushing folks,' Maine nonprofit says”
- Our desk filed its story
U.S. heating oil averaged about $5.91 a gallon as of Nov. 9, up roughly $2.19, or 59%, from a year earlier, according to Energy Information Administration figures cited by CNBC1.
In Maine, where about half of homes rely mainly on heating oil, the average was about $5.83 a gallon, up about $2.49, or 75%, from a year earlier1. Jason Parent, chief executive of AVEC Community Action in Presque Isle, Maine, told CNBC the increase "is crushing folks" already strained by living costs1.
About 4.1 million U.S. households use heating oil as their primary heat, and nearly 3.4 million of them are in the Northeast, CNBC reported, citing the EIA1. Unlike gas or electricity billed monthly, heating oil is often delivered in bulk; Maine's attorney general's office says ordering at least 100 gallons for a standard 275-gallon tank can avoid a surcharge, which at current prices would cost about $6001.
The EIA in October forecast that the average household using heating oil will spend $2,115 from November through March, about 21% more than last year, CNBC reported1. The agency also predicted a warmer Northeast winter would cut consumption and partly offset higher prices1. Homes heated mainly with natural gas were forecast to spend $640 this winter, down 9%; propane $1,246, down 3%; and electricity $1,196, up 4%1.
CNBC cited Kansas City Fed research attributing the refined-fuel squeeze to supply shocks tied to the Iran war and the Russia-Ukraine war, low inventories and limited refining capacity1.
AVEC's Home Energy Assistance Program, funded through federal LIHEAP, has an average benefit of about $750 this season, up from about $550 last year, Parent said, but that credit buys fewer gallons of oil1. He said AVEC's emergency fuel line drew 150 voicemails in the first hour after it opened Nov. 21.
Maine and tribal grantees received about $38 million from LIHEAP in October, according to a statement from Sen. Susan Collins cited by CNBC; AVEC administers about $4 million of that, Parent said1.
The Energy Department said Nov. 4 it would release 300,000 barrels of heating oil from the Northeast Home Heating Oil Reserve1. University of Maine economist Jonathan Rubin told CNBC the effect depends on whether distributors sell the oil in one month or over the season, describing it as a modest short-term buffer1.
Dozens of House lawmakers, mostly Democrats, signed an Oct. 14 letter seeking $3 billion more in emergency LIHEAP funding, following an Oct. 1 request from Democratic senators and Sen. Bernie Sanders of Vermont to Health and Human Services Secretary Robert F. Kennedy Jr.1. The government released about $3.63 billion nationwide on Oct. 9, 90% of about $4 billion available under a continuing resolution; the rest depends on further appropriations before a Dec. 11 funding deadline1.
Catherine Lafleche, 65, of Hersey, Maine, told CNBC a charitable 100-gallon delivery after her tank ran dry in October should last into early December while she awaits HEAP approval1.