Along with gas, groceries, interest and healthcare, home heating costs are headed north as well. Households using heating oil are expected to be especially hard-hit, with seasonal costs exp3cted to hit $2,977 for a typical household — a 70 percent increase over last year, according to The New York Times.
Homes that use electric heat and propane will be a bit better off — with costs of about $1,215 for electric and $1,350 for propane, according to the National Energy Assistance Directors Association (NEADA).
Those higher prices will wipe out some of the savings in gas prices. AAA put the national average for regular gasoline at $3,9788 a gallon yesterday, down almost 39 cents from a month ago, thanks to lower seasonal demand.
Energy costs are also embedded in other purchase. reaching consumers through other purchases. The Associated Press reported that airlines had raised ticket prices and fees, reduced schedules and shelved plans to add flights as fuel costs rose.
Air fares were about 22 percent higher in September than a year earlier, according to the Consumer Price Index.
Why is heating oil so high?
You might think that lower gas prices would help hold down heating oil costs. But lower gasoline prices don’t guarantee lower heating bills.
Heating oil is similar to diesel, and The New York Times reported that refinery disruptions in the Middle East and Russia have constrained supplies of diesel and related fuels. The article also cited federal data showing about one in six households had fallen behind on natural-gas and electricity payments.
Federal help in question
One of the biggest sources of help for homeowners battling high heating oil prices is the Low Income Home Energy Assistance Program (LIHEAP) and its future is in doubt.
It’s been under persistent threat from the Trump Administration, which fired the entire LIHEAP program staff at the Department of Health and Human Services (HHS) on April 1, 2025 and proposed eliminating funding for the program in fiscal year 2026.
On November 28, HHS released $3.7 billon in LIHEAP funds, despite the Administration’s proposal to eliminate the program. The government shutdown halted the release of funds at a pivotal time, as LIHEAP is most needed in cold-weather states from November to March.
“Heating costs are expected to soar this winter as consumers face new rounds of rate increases. LIHEAP is more crucial for low-income families now than ever during this holiday season,” the NEADA warns.