Winter Price Hikes Forecast; Congress Acts on LIHEAP

The average family using home heating oil will spend an additional $278 to keep warm this winter compared to last, according to a press release from the National Energy Assistance Directors’ Association (NEADA). Heating oil costs for the average family averaged about $1263 last winter and are projected to hit $1541 based on current market prices during the upcoming winter heating season. This represents an increase of 22 percent ($278) over last winter’s prices and 62 percent over ($589) the winter heating season of 2003-04.

NEADA’s data projections are based on energy futures prices for heating oil for the upcoming winter heating season. Data used for the 2004 and 2003 winter heating seasons are based on Energy Information Administration’s Winter Fuel Outlook series. In making its projection for this coming winter, NEADA used an average price of $2.22 a gallon for heating oil, compared to $1.82 for the winter of 2004-05 and $1.36 for the winter of 2003-04. Heating oil prices are currently averaging $2.10 a gallon in Massachusetts, about 60 cents a gallon higher than they were at this time last year.

NEADA, as well as other organizations are calling on Congress to increase LIHEAP funding to $3.4 billion to address the expected increase in home energy prices this winter.

So far this year, the House Labor-HHS-Education Appropriations Committee has approved FY 2006 LIHEAP funding at $2.006 billion in regular funds and no emergency contingency funding. This falls slightly short of FY 2005 funding of $2.18 billion ($1.884 billion in regular funding and $297.6 million in emergency funds).

The Senate Appropriations Committee has LIHEAP funded at $1.883 billion for the regular program and $300 million for the emergency contingency fund.

Source: NEADA, LIHEAP Coalition

Page Last Updated: April 21, 2008