Connecticut homeowners urged to budget now for higher heating oil costs
Connecticut residents who heat their homes with oil could face significantly higher costs this winter, with prices up about $1.50 compared with this time last year.
The increase comes as about half of Connecticut homes rely on heating oil, prompting energy experts to recommend that residents start budgeting now, explore payment options, and take steps to reduce their fuel consumption before colder weather arrives.
Chris Herb, president of the Connecticut Energy Marketers Association, said current prices are tied to the Russia-Ukraine war and the war with Iran.
“These are certainly challenging times,” he said.
For a 1,000-gallon oil tank that needs to be filled, the price increase compared with last year could amount to roughly $1,500 more.
Herb said it is difficult to predict where prices will go from here.
“No one has the Crystal ball as to what is going to happen, but this snapshot in time, it doesn’t look good,” Herb said.
Herb recommends customers talk with their local oil dealers about their options. A contract may not be the right choice for everyone this year given the uncertainty surrounding prices, but dealers may offer budget plans or other ways to manage costs.
“What we are working on is making sure our customers are moving toward budget plans and other price management mechanisms that might fit into their budget,” he said.
In Newington, Steve Greenslade said he has used a budget plan for decades.
“I know what my budget is every month, I know what I need to pay every month, and I can pay ahead if I have to,” Greenslade said.
Energy assistance will also be available for eligible Connecticut households. Federal funding received a small boost, but lawmakers are concerned about how far those dollars will stretch with higher oil prices.
State Sen. Norm Needleman, who chairs the Energy and Technology Committee, said the same amount of funding will not buy as much heating oil at current prices.
“We are looking at the same amount of dollar buying roughly half the amount of oil,” Needleman said.
Needleman said the state will closely monitor both funding and winter weather.
“We are going to have to watch it… a lot, it depends on the winter and how bad a winter it is,” he said.
Connecticut energy assistance applications open Sept. 1.
Residents can also take steps to lower their heating oil consumption. Efficiency improvements such as insulation can help, and homeowners can schedule a tuneup of their heating systems before winter.
Herb said a simple tuneup can reduce home heating oil consumption by 10%.
“When prices are rising, if you can do something to use less fuel… that puts money back in your pocket,” Herb said.
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