Heating oil prices jumped 38 cents in the last week, alone. That spike in the price of heating oil shatters the record high set just last week.
The new average price for a gallon of residential heating oil in the US is a record-high $5.72. Last week, the price was $5.34.
And these high prices, combined with the already high prices on electricity and other utilities, plus the increased costs due to inflation, continue to put more of a strain on small businesses.
Heating oil has jumped more than $1 per gallon in just 2 weeks.
Right now, the cost for a small business to fill an empty, 250-gallon tank with heating oil is, on average, $1,431.50. Small businesses and homes use residential heating oil not only for defense against cold air, but also to provide hot water, in some cases.
At this time last year, the US average price on a gallon of residential heating oil was $3.36. Heating oil prices have gone up 70% in the last year.
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Here’s a regional breakdown of the price of a gallon of residential heating oil, as of the Oct. 17 update from EIA:
- US Avg: $5.72
- New England: $5.70
- Central Atlantic: $5.84
- Lower Atlantic: $5.03
- Midwest: $5.21
Heating oil is most expensive in the following states:
- Delaware: $5.90
- New York: $5.86
- New Jersey: $5.86
- Rhode Island: $5.85
- Pennsylvania: $5.79
Are heating oil prices going up or down?
Heating oil prices continue to go up, in the wrong direction for small business owners and others who rely on it for warmth during cold weather.
Historically, prices tend to go up on heating oil through the end of a calendar year, when demand increases, mostly in cold-weather states.
EIA tracks data from the regions noted above. And EIA has been reporting and tracking the price of heating oil since 1990.
Other factors, like a decrease in oil production, will lead to a smaller supply of oil, more demand, and higher prices.