The price of home heating oil is expected to hit an all-time high this winter. That’s unwelcome news from Maine to Maryland, where millions of people rely on the fuel to stay warm. The spike could make life difficult for heating oil suppliers and their low-income customers.
When the price of crude oil jumps the price of home heating oil pretty much follows.
In the last 12 months, the price of crude has shot up 40%.
What’s causing the spike?
Aaron Brady, an analyst for IHS Cambridge Energy Research Associates, says its emerging markets like India and China.
It’s that time of year when people light fires in the morning, or see their tomatoes glazed in frost. It won’t be much longer before the real cold comes. Last year, some 45,000 families around New Hampshire received some help paying their heating bills. But this winter, all signs point to a cut in federal fuel assistance.
The math is pretty simple, says Mark Wolfe with the National Energy Assistance Directors’ Association.
“At this point both the House and Senate both call for a cut of about $1 billion dollars.”