Record Heating Oil Prices Projected

The state low income energy directors today released their November winter home heating price projections. Prices are projected to increase by 15.2% for all families and reach record levels for home heating oil, propane and electricity this winter. Expenditures for home heating oil, in particular, are projected to be almost 47.3% higher than last year’s level. The average family is projected to pay about $693 more for home heating oil than last year for a total of $2,157.

According to Mark Wolfe, Executive Director of the National Energy Assistance Directors’ Association, “the Congress and the Administration need to act to quickly to help families pay their winter heating bills this winter, the current funding level for energy assistance is seriously inadequate to meet the need to help poor families pay their home heating costs this winter and not have to choose between heating and paying for their medicine and other essentials.”

Low income households pay a higher share of their income for home energy than other families. In FY 05, the mean energy burden for low income households was 14.6 percent as compared to only 3.2 percent for non-low-income households. For LIHEAP households, the burden was even greater - 20.2 percent. The average LIHEAP grant has been declining for the last several years and would be decimated under the President’s Budget: FY 06 - $454, FY 07 - $314, FY 08 Pres -$256, FY 08 House/Senate Conference Agreement - $348. Under the President's budget states would only be able to serve 4.5 million households for a reduction of 1.1 million from the current level of 5.6 million served.