December 7, 2022

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Heating Oil Prices Skyrocket to Record High

Heating Oil Prices Skyrocket to Record High

Heating oil prices in the US skyrocketed to a record high for small businesses and other consumers in the last week.

New data from the US Energy Information Association shows the average price for a gallon of No. 2 residential heating oil jumped from $4.62 to $5.33 in the last week, a 15% increase. That’s the highest price ever, at least since EIA started tracking this data in 1990.

Heating oil is more than $5 for only the second time in the history. It previously broke the $5 a gallon mark back in March.

The rise in prices comes as temperatures continue to drop, creating a demand for more heating oil for many small business owners and homeowners.

Current Price of Heating Oil

Earlier this week, EIA predicted the average heating oil consumer would likely be paying 28% more this year than they did in 2021.

At this time last year, the US average price on a gallon of residential heating oil was $3.28. In 2020, it was $2.13, meaning the price has more than doubled since October two years ago.

Here’s a regional breakdown of the price of a gallon of residential heating oil, as of the Oct. 13 update from EIA:

  • US Avg: $5.33
  • New England: $5.27
  • Central Atlantic: $5.51
  • Lower Atlantic: $4.78
  • Midwest: $4.33

Heating oil is most expensive in the following states:

  • Delaware: $5.63
  • New York: $5.54
  • Connecticut: $5.50
  • New Jersey: $5.50
  • Maryland: $5.49

Are heating oil prices going up or down?

The price of heating oil historically goes up through the end of the year, so it’s expected the price will go up at least through October but likely longer.

Other factors, like a decrease in oil production, will lead to a smaller supply of oil, more demand, and higher prices.

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