Heating oil prices could go up as much as 45% in Pa.
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Pennsylvania homeowners who use heating oil could see their bills increase 45% this winter due to higher prices and colder temperatures.
The U.S. Energy Information Administration said this month that low inventory of fuels used for diesel and home heating oil will lead to high prices through the start of next year. U.S. supplies at the end of October were at their lowest levels for the month since 1951.
More uncertainty will be created in the global market, the EIA said, by the European Union’s plan to ban imports of petroleum products from Russia next year.
The price of residential heating oil in Pennsylvania reached its highest level this month since the energy agency began tracking it in 1990. Prices peaked at a record $5.86 per gallon during the week ending Nov. 7. They’ve fallen to $5.40 as of the week ending Nov. 21; though that’s $2.16 higher than this time last year.
Why have heating oil prices increased in PA?
Pennsylvania isn’t immune from national trends. The U.S. has seen a “significant” decline in refinery capacity during the past few years, which has led to less production of heating oil, EIA spokesperson Chris Higginbotham said in an email.
“That’s a national issue, but its effects are particularly apparent in Pennsylvania and the rest of the Northeast,” Higginbotham said. “The Philadelphia Energy Solutions refinery closed in 2019, and a refinery in Canada that provided significant supplies of diesel and heating oils to the Northeast transitioned to processing biofuels in 2020.”
Refinery strikes in France and seasonal maintenance in the U.S. in October also limited supplies, he said. The EU’s ban on Russian diesel and heating oil, expected to take effect in February, will increase global competition as Europe looks for new oil providers.
The supply issues contribute to higher prices, Higginbotham said. Prices also tend to be higher this time of year due to growing demand as the weather gets colder.
The five states that use the most heating oil are all in the Northeast, EIA data shows. New York is No. 1, while Pennsylvania is No. 3.
What are some ways to cut energy use?
The National Oilheat Research Alliance provides several tips for saving energy during cold weather. They include:
— Open window shades during the day to let the sun’s warmth in and close them when the sun goes down. Windows on the south side get the most sunlight. Windows facing east get sunlight in the morning, while windows facing west get sunlight in the afternoon.
— Make sure radiators are free of dust so they can be as efficient as possible.
— Wrap pipes to limit heat loss and keep them from freezing.
— Don’t use space heaters, because they’re expensive and can be dangerous.
— Upgrade your oil burner, as a modern burner can reduce costs by 15%.