Wednesday, December 15, 2021
Massachusetts heating oil averaged $6.15 for the week of Nov 2, up 69% in a year, as a federal reserve release heads to Northeast dealers.
Heating oil is above $6 a gallon across much of the Northeast as the cold season begins. The Massachusetts Department of Energy Resources put its state average at $6.15 for the week of November 2, down from $6.23 a week earlier. A year ago it was $3.63. These are moving numbers as of this week, and they are expected to keep shifting with the war news.
The same squeeze shows up in nearby states. Maine's state survey hit a record $6.05 on October 26. At that price, filling an empty 275-gallon tank costs about $750 more than last year. The Philadelphia Inquirer reported Pennsylvania at $6.048 in late October, just under the state's $6.066 record set earlier that month. The national EIA residential average was $6.233 on October 26. In its October outlook, the EIA expected heating oil to average $5.26 from November through March, so today's price runs about $1 above that forecast. About 4.1 million US households heat with oil, and roughly 3.4 million of them are in the Northeast.
Most energy experts tie the jump to the Iran war and the loss of shipping through the Strait of Hormuz, the Inquirer reported. Heating oil and diesel come from the same tight distillate supply. The EIA put diesel at $6.29 on November 2, down 6 cents in a week. The Energy Department is releasing up to 315,000 barrels from the 1-million-barrel Northeast Home Heating Oil Reserve, with deliveries due by mid-November, Maine Public reported. It is only the second emergency release in the reserve's history. A spokesperson for Sen. Susan Collins said that equals about 13% of New England's current fuel oil supply. Penn fellow Jamie Van Nostrand told the Inquirer it is not enough to have a lasting impact.
If you heat with oil, act before the first cold snap. Check your tank gauge this week and call your dealer about delivery size. Michael Longo Jr. of 7 Oil, a dealer serving New Jersey, told the Inquirer that many customers now ask for smaller deliveries, and his company works with requests like 100 gallons. He also warns against running a tank very low, because sludge can lead to costly repairs. A smaller fill costs more per gallon at some dealers, but it keeps the heat on while you wait for a better price. Dropping the thermostat from 70 to 68 stretches each delivery.
Plan the bill the way you plan any other shock to the family budget. If the cost will strain you, apply for heating aid early. Pennsylvania opened its LIHEAP applications on November 2, and your state energy office can tell you what is open near you. A small emergency fund covers a delivery that lands in the same week as a car repair. If you keep a wood stove or space heater as backup, the steps to heat your home without power apply here too. Put a working alarm on every floor, since preventing carbon monoxide poisoning matters most when a home runs on backup heat. If you heat with gas or propane, your bill may hold steadier, and the EIA expected lower spending on both this winter.
Where it stands now: prices eased in the latest Massachusetts survey, but they sit about 69% above last year and depend on what happens in the Strait of Hormuz. Check your tank and your economic preparedness plan this week. Be Prepared Not Scared!
