The war with Iran already has cost U.S. consumers more than $100 billion in direct costs for our gasoline purchases. That’s about $800 per family since the war began in February — and that figure is increasing every day that the war drags on.
However, what we are paying at the pump because of this so-called war is nothing compared to the coming shock of heating oil prices for the 20% of Mass. residents who use oil to heat their homes.
The average price for a gallon of heating oil already is a jaw-dropping $6.15 per gallon, which represents a staggering 75% increase above the average price of $3.52 per gallon at this time last year.
This means that a fill-up of 200 gallons for a family’s oil tank will cost about $1250, a figure that is completely unaffordable for many and that will strain the budgets for most.
Natural gas prices are not predicted to increase as much, but the 50% of Mass. residents who heat their homes with natural gas are expected to see an increase of up to 15% in their heating bills this winter.
Even if the war with Iran were to end tomorrow, the significant disruptions to the world’s energy supply chains that already have occurred would not bring significant relief from the current elevated prices for gasoline, diesel, and home heating oil.
In short, there is no relief in sight — and there is the likely prospect (depending on weather around the country and more supply shocks) of prices going even higher.
The only hope we have for making it through the winter heating season without emptying our wallets is to pray for a warmer-than-normal winter. Even so, we still should plan on lowering