Be prepared for sticker shock when the cold arrives: Prices for home heating oil, along with diesel, are already sky-high and won’t be dropping anytime soon, energy experts say.
The average price for heating oil across the Bay State is $5.98 per gallon, a significant surge from last year’s $3.52 per gallon, according to the Massachusetts Department of Energy Resources.
Average costs jumped more than 60 cents per gallon in late August, with one state heating and cooling industry leader warning that prices will continue to increase as the warmth turns to cold and wars continue around the world.
“We are in a global energy crisis,” said Michael Ferrante, president of the Massachusetts Energy Marketers Association. “There is no question that people who heat their homes with heating oil and those who drive trucks for a living with diesel fuel are going to see extraordinarily high pricing.”
Ferrante points to military conflicts not just between the United States and Iran, but also Ukraine and Russia, as the primary driver behind an unprecedented global energy market that he says will continue to be hit hard over the coming months.
Dramatic swings are already unfolding, Ferrante said, noting that the benchmark price for fuel oil jumped from $4.96 per gallon on Monday to $5.25 per gallon on Tuesday on the New York Mercantile Exchange.
“We are in a global energy market,” Ferrante told the Herald on Tuesday, “and right here in Massachusetts, we are impacted by all those events around the world. I have done this job for 30 years, and I have never seen such volatility in such rapid time.”
“In my view,” he added, “if peace were to be declared around the world with all of the military conflicts that we see, it’s not going to change the fact that heating oil and diesel fuel prices are going to probably be some of the highest ever.”
That’s because the entire petroleum supply chain has been “damaged, disrupted and interrupted” amid the conflicts, Ferrante said.
Nationally, U.S. households relying on heating oil face the sharpest cost increases this winter compared to last year—up 31.3%—according to the National Energy Assistance Directors Association.
Increases are expected across the board regardless of heat source: Families heating with electricity are projected to pay 9% more, natural gas customers 5.8% more, and propane customers 8.7% more, NEADA found.
“This is a warning that too many families are entering winter with no room left in their budgets,” NEADA Executive Director Mark Wolfe said in a statement. “They have already experienced record-high summer cooling costs, and now they are facing home heating costs that are rising more than twice the rate of inflation.”
NEADA is urging Congress to boost funding for the federal Low Income Home Energy Assistance Program from $4 billion to $7 billion before winter bills hit mailboxes. Over 156,000 Bay State households received federal assistance through the program last year.
Meanwhile, political crosswinds over energy production continue to build.
President Trump has called on Ukrainian President Volodymyr Zelenskyy to halt strikes on Russian oil infrastructure, arguing the attacks are worsening a global diesel shortage.
Ukraine’s long-range strikes have prompted fuel rationing in Russia and led Moscow to halt diesel exports in July, further tightening global supply alongside shipping disruptions through the Strait of Hormuz.
The Massachusetts Office of Housing and Livable Communities pushed back, blaming Trump for “driving up home heating costs with his tariffs and war.”
“Massachusetts families and businesses can’t afford it,” an agency spokesperson said in a statement to the Herald. “The Healey-Driscoll Administration is going to continue to help families heat their homes, while also advocating for passage of energy affordability legislation to lower people’s energy bills.”
Motorists are feeling equal pain at the pump. The average gas price across Massachusetts is up 13 cents from last week, averaging $4.34 per gallon—3 cents higher than the national average, according to AAA Northeast.
“Gasoline prices are at record levels for this time of year and nearing annual highs set in May when oil last traded above $100 a barrel,” said Mark Schieldrop, senior spokesperson for AAA Northeast. “Drivers are unlikely to see major decreases in pump prices while uncertainty remains regarding the Strait of Hormuz, ongoing attacks, and global supply.”
On Tuesday, West Texas Intermediate crude oil traded around $105.65 per barrel, while Brent crude hovered near $108.88. Those benchmarks inevitably trigger broader economic ripples.
“If a UPS truck is coming down your road to deliver a package,” Ferrante said, “it’s being fueled by diesel fuel. The products that we get are impacted by these overhead costs that companies like UPS, FedEx and the average trucking company have to incur.”
The Associated Press contributed to this report
Comments