U.S. household energy bills are expected to drop this winter, except in the country’s nearly five million homes that still rely on heating oil.
Residents of some states, mainly in New England and especially Maine, Vermont, New Hampshire, Connecticut, Rhode Island and Massachusetts, are the few Americans who may have to pay more to heat their homes.
The reason is twofold: heating oil is forecast to become more expensive and the eastern parts of the country are expected to have a colder winter than last year.
Those who rely on heating oil can expect to pay about 8 percent more, up to about $1,850 per household. according to a new report by the Energy Information Administration.
But the agency’s Winter Fuels Outlook report suggested that those who rely on natural gas, electricity and propane for their primary heat source will pay an average of 20 percent, 1 percent and 3 percent less, respectively.
Households in some states, especially in the Northeast and especially Maine, Vermont, New Hampshire, Connecticut, Rhode Island and Massachusetts, are much more dependent on heating oil
Pictured is an oil truck in Hatfield, Pennsylvania, where about 13 percent of households use it to heat their homes, according to a 2020 EIA report
The cost of fuel oil, derived from crude oil, is expected to remain high as Saudi Arabia continues voluntary crude oil production cuts and fears spread that the war between Israel and Hamas will entrap major oil producer Iran, which has backed Hamas. could cause problems.
Meanwhile, the price of natural gas, which is used by about 46 percent of U.S. households, is expected to be lower in price than last year.
Temperatures in the western United States are also forecast to be warmer than last winter, which was much colder than the average for that region.
Those that will do best this year are households that heat with natural gas and are located in the West – they account for 56 percent of all American households.
Heating oil is most commonly used in the Northeast for home heating, mainly due to older, pre-World War II infrastructure.
It is used by 49 percent of households in Maine, 46 percent in Vermont, 40 percent in New Hampshire, 39 percent in Connecticut, 31 percent in Rhode Island and 14 percent in Massachusetts, according to the an 2020 EIA report.
However, the percentage that still uses it decreases every year. This year, 3 percent fewer households in the country are expected to burn it compared to last year.
The use of heating oil is most common in the Northeast for home heating, mainly due to the colder climate and older pre-World War II infrastructure. The photo shows a fuel truck advertising the price for a liter of heating oil in October 2022
A driver delivers oil to a home in Scarborough, Maine, in October 2021
In New York and Pennsylvania it is used for primary heating in 17 and 13 percent of homes. In Delaware, Maryland, New Jersey, North Dakota and Virginia, it is used in less than 10 percent of homes.
Unlike natural gas or electricity, fuel oil must be delivered by truck, which adds cost and complexity.
Mark Wolfe, executive director of the National Energy Assistance Directors Association, told CNN last month: “If you’re in New England, this is scary. It will be another expensive year for families that use heating oil.’
According to the EIA, the winter in the east will be colder than last year, but not exceptionally so.
“We assume that temperatures for the winter of 2023–2024 in the eastern part of the country will be slightly colder than last winter, but warmer than the average of the ten previous winters,” the report said.
‘In the West, however, our forecasts expect this winter to be warmer than last winter, which was very cold, and warmer than the average of the ten previous winters.’