Heating costs expected to rise sharply this winter, with home heating oil seeing biggest increase

HAVERTOWN, Pa. (WPVI) — Americans are expected to pay significantly more to heat their homes this winter, with home heating oil customers facing the steepest increases due to the war in Iran and the effective closure of the Strait of Hormuz.

Household heating costs overall are projected to rise about 8.7% this winter, and home heating oil prices are expected to increase by more than 30% compared with last year.

That could potentially add hundreds of dollars to customers’ bills. For some consumers, energy price protection programs may help reduce uncertainty.

“I feel bad for some of the younger people that might be really on a really tight budget and then all of a sudden, the prices go up so much,” said Mark Carden of Havertown, Pennsylvania.

Carden participates in a CAP program through Boyle Energy in Havertown, Delaware County.

Under the program, customers pay a fee and are protected from paying above a set price cap.

If market prices fall below the cap, customers pay the lower market rate and retain the savings.

“It’s almost like an insurance policy too. Probably paying a little extra maybe for the policy, but at least you’re not gonna get whacked if something happens,” Carden said.

Patrick Boyle, president of Boyle Energy, said the company’s CAP program can help customers avoid concerns about sudden price increases.

“It takes that anxiety out of, ‘oh man, the price oil’s gonna go through the roof,’” Boyle said. “Year in and year out, they save money,” he added.

Boyle also encouraged customers to enroll in budget payment plans.

Under the company’s program, customers can spread heating costs over a 10-month period beginning in the summer rather than paying for deliveries during the winter months.

“It doesn’t lower the price, but it just spreads out the payment for them, and that helps out,” Boyle said.

Carden said the predictability provided by such programs can be valuable during uncertain times.

“At least we know that we’re gonna be in this range. And that really helps. Because, especially now, times are uncertain,” he said.

Consumers can also reduce heating expenses by maintaining their heating systems to ensure they are clean, safe and operating efficiently.

Homeowners were advised to schedule annual tune-ups before colder weather arrives.