As oil costs skyrocket amid the conflict with Iran and an exceptionally cold winter drags into its final weeks, many Massachusetts residents are facing an energy crisis – but still have time to apply for recently expanded heating assistance this season.
“We’re seeing more than 75% of our households running out of their benefit by the end of the last month,” said Marybeth Campbell, executive director for Worcester Community Action Council, noting the council serves around 27,000 people per year. … “It’s been a terrible collision of weather, the low temperatures, lower benefits and now increased energy prices have just really disabled people’s ability to pay their bills and keep their heat on.”
Massachusetts residents were already in the midst of an uncommonly harsh winter, with over 60 inches of snowfall in Boston, but heating oil prices were “quite stable” for much of the season hovering around $4 to $4.30, Massachusetts Energy Marketers Association President Michael Ferrante said.
After the Iran war erupted, prices surged and fluctuated, reaching an average of $5.39 throughout the state on March 9, Ferrante said. As of March 12, towns across the state including Blackstone, Uxbridge, Needham, Dedham, Franklin and Walpole reported cash prices up to $5.24, according to the New England Oil price tracker.
About 54,000 households making up 72% of the Home Energy Assistance Program (HEAP) program in Massachusetts have less than $100 in heating benefits remaining for the rest of the November to April season, state officials said. HEAP serves 54% seniors on fixed incomes and 11% households with children under six years old.
The Healey administration announced an increase in HEAP benefits for the remainder of the season Tuesday, increasing maximum benefits for fuels like oil or propane from $1,000 to $1,400 and for natural gas or electric from $850 to $925. The news comes as the state awaits receiving the final $15 million in federal funding from the Department of Health and Human Services.
Residents have until April 30 to apply.
“Increasing these benefits will help make sure seniors, families with children and other residents can keep their homes warm during the coldest weeks of the year,” Gov. Maura Healey said.
Along with gasoline, the crude oil crisis has been a “tremendous disruption” in the heating oil market and an “unwelcome situation” for retailers, Ferrante said, noting the average Massachusetts price was $3.85 just this time last year.
“There’s a lot of uncertainty, a lot of fear,” Ferrante said. “And I think we’re just trying to manage the heating oil industry to get through next couple of weeks and wind down. That’s the only optimistic piece of this, is that the heating season is winding down.”
Almost four years ago, oil prices shot up in reaction to Russia’s invasion of Ukraine, Ferrante said, but “this is different, just in my view.”
The roller coaster ride for crude continued on Thursday with Brent Crude, the international standard, up 9.2% to close at $100.46, after Iran vowed to continue to keep the critical Straight of Hormuz closed to oil tanker traffic. A barrel of benchmark U.S. crude rose 9.7% to settle at $95.73.
“What’s frightening is this whole issue of transporting product through a very volatile stretch of waterway, and I think no one can predict when that’s going to change,” said Ferrante. “And that’s the uncertainty that we all feel in this industry. It’s scary. Who knows how long this will go on for?”
In terms of next season, Ferrante said, he’s “not worried about inventories” adding that the industry will look for “calmness to return to the market” to plan for long term purchases.
“When things end certainly – hopefully they end soon, or recede in terms of the intensity – then these wholesale suppliers and even the retailers will start looking towards next season, but that probably won’t happen for quite some time,” said Ferrante. “But there’s planning over the summer that will happen with respect to purchasing fuel for the following winter.”
Still in this season, Campbell said, many are forced into “really hard decisions of choosing to either pay their rent or mortgage over their heating bill, or forego food or prescriptions or other basic need costs in order to keep the heat on.”
“They’re maybe borrowing from friends and family, if they’re lucky to do that, or they’re making very unsafe decisions to heat their home, whether that means opening their oven for heat or using electric heaters,” Campbell said, speaking to the “incredible amount of anxiety and frustration.”
Campbell urged residents in need to call their local community action agency, noting additional benefits they can provide like offering assistance with weatherizing homes, SNAP, housing resources and more. Residents can find their local agency at masscap.org.
More information about HEAP eligibility and application is available at mass.gov/heat.
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